Service Stream Ltd (SSM) reported an 18.4% increase in adjusted net profit after tax to A$81.1 million for the full year ended June 2026, driven by higher revenue and margin expansion across its utilities and defence segments.
Group revenue rose 2.3% year-on-year to A$2.475 billion, while EBITDA increased 11.8% to A$163.4 million, lifting the EBITDA margin by 60 basis points to 6.6%. Adjusted earnings per share climbed 17% to A$0.131. Statutory NPAT totalled A$66.9 million after A$21 million in SaaS and ERP-related costs.
The company’s defence operations contributed A$88 million in revenue following the award of the Department of Defence’s Property and Access Services contract, which began in February 2026. The contract, secured after a five-year pursuit, turned profitable within five months, according to management. Utilities remained the primary profit driver, with EBITDA up 34% to A$15.4 million and margins expanding for eight consecutive half-year periods to 5.8%.
Service Stream’s order book stood at A$8.2 billion in initial contracted work, rising to A$14.2 billion when including multi-year extension options. The company secured A$3.2 billion in new multi-year contracts during FY2026, with a 93% retention rate for agreements reaching renewal milestones. Roughly 70% of revenue was derived from government entities and tier-1 industrial asset owners, predominantly under lower-risk scheduled rate or alliance-style agreements.
The group ended the year with a net cash position of A$80.7 million and total liquidity of approximately A$400 million. Operating cash flow before interest and tax reached A$186 million, with an EBITDA-to-OCFBIT conversion rate of 113% to 114%. A fully franked final dividend of A$0.035 per share was declared, bringing full-year dividends to A$0.065 per share, an 18% increase on the prior year.
For FY2027, management expects revenue growth of 5% to 10%, with the Defence PAS contract projected to contribute about A$240 million annually. The Yarra Valley Water contract is scheduled to commence in October 2026. Maintenance capex and IT spending are forecast to remain near 1.5% of revenue, while corporate costs are expected to revert to A$15 million to A$20 million. The ERP and systems upgrade program is on track for completion by the end of FY2027.
Service Stream’s shares rose 1.98% to A$2.58 following the results, within a 52-week range of A$1.78 to A$2.72.
