SKS Technologies Group Limited (ASX:SKS) Reports Record 1H25 Results
Financial Performance
SKS Technologies reported sales revenue of $115.94 million for the first half of FY25, marking a 116.1% increase from 1H24 and nearly matching FY24’s full-year revenue of $136.31 million. Profit before tax surged by 359.6% to $8.37 million, while EBITDA rose by 227.7% to $18.99 million. Cash flows from operations quintupled to $18.99 million, strengthening the balance sheet.
Operational Performance
The company’s work on hand increased to $174 million, more than doubling from $86 million in 1H24. Significant contracts include a $90 million project for the expansion of an Airtrunk data facility in Melbourne. The order book has grown by an average of 104.2% annually since June 2020, with approximately $570 million in open tenders.
Dividend Declaration
The Board has declared an interim dividend of 1.0 cent per share, fully franked, with a record date of 18 March 2025 and payable on 4 April 2025.
Outlook and Forecast
SKS Technologies forecasts full-year revenue of $260 million for FY25 with a before-tax margin around 7%, supported by a robust order pipeline and continued growth in the data centre market.
Executive Comments
Chief Executive Officer Matthew Jinks stated, “I’m pleased to report that the first half of FY25 delivered the material increases in earnings that we have been targeting for the past three to four years… The pathway to today has been a remarkable experience and a testimony to the skill, professionalism and loyalty of the whole SKS team.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sks Technologies Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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