SGH Ltd (ASX:SGH) has kicked off FY25 with a bang, delivering double-digit earnings growth and rewarding shareholders with a 30% boost to its interim dividend. Despite mixed market conditions, the company posted EBIT of $843 million (+10%) and NPAT of $508 million (+7%), with revenue up 2% to $5.5 billion.
The Standout Numbers
- Revenue: $5.5 billion (+2%)
- EBIT: $843 million (+10%)
- Underlying NPAT: $508 million (+7%)
- Interim dividend: 30 cents per share (+30%)
CEO Ryan Stokes credited the strong performance to disciplined execution, cost control, and a relentless focus on customers. And with total shareholder returns (TSR) hitting 25%, investors have plenty to smile about.
“We’re delivering on our promise—earnings are up, margins are expanding, and we’re keeping costs in check. Boral’s transformation is gaining momentum, WesTrac remains a powerhouse, and our industrials and energy businesses are firing on all cylinders.”
What’s Driving Growth?
- WesTrac (EBIT: $352m, +5%) – Strong demand for equipment and services, despite a slight dip in parts pricing.
- Boral (EBIT: $259m, +29%) – Cost cuts and pricing discipline driving big margin improvements.
- Coates (EBIT: $156m, -2%) – Holding steady despite softer activity in Victoria.
- Energy (EBIT: $70m, +39%) – Beach Energy production up, costs down, profits soaring.
- Media (EBIT: $23m, -18%) – Tough TV ad market weighing on earnings.
Looking Ahead
SGH maintains its guidance for high single-digit EBIT growth in FY25, confident in the resilience of its industrials, energy, and infrastructure businesses. Meanwhile, the Boral acquisition, completed in July 2024, is already showing its worth.
With cash flow up 15%, leverage down to 2.18x, and no major debt maturities until FY29, SGH is well-positioned for future growth—and it’s making sure investors come along for the ride.
