Skellerup Holdings Ltd reported record fiscal 2026 revenue of NZD 289.4 million, a 10% increase year-over-year or 8% in constant currency terms. Normalized earnings before interest and tax rose 14% to NZD 89.3 million, while normalized net profit after tax climbed 18% to NZD 64.2 million. Reported GAAP net profit increased 24% to NZD 67.7 million.
The company’s gross margin expanded to 44%, up 100 basis points from the prior year. Operating cash flow surged 26% to NZD 83.6 million, while net debt fell to less than NZD 2 million, down NZD 10.4 million and representing less than 1% of total assets. Capital expenditure totaled NZD 15.1 million. Skellerup declared a full-year dividend of NZD 0.30 per share, an 18% increase, with a 92% payout ratio.
Return on invested capital approached 25%, while return on equity stood at 20%. The company maintained a current ratio of 1.64 and a debt-to-equity ratio of 0.02. Its InvestingPro financial health score was 3.42 out of 5. The industrial division grew revenue by 9%, marking the sixth consecutive year of EBIT growth, while the agri division posted a 13% revenue increase, its second straight year of EBIT growth.
Skellerup’s share price rose 0.4% to $7.23, following a 52-week range of $4.64 to $7.38. The company has paid dividends for 24 consecutive years. Long-term performance metrics include a seven-year compound annual revenue growth rate of 7%, normalized NPAT growth of 12%, and normalized EBIT growth of 11%.
The company noted that a fire at its Wigram manufacturing facility in August 2025 disrupted one of two continuous vulcanization lines, which contributed less than 3% of group revenue. Operations resumed on the second line with no customer or sales loss, and a replacement line is expected to be commissioned by the end of fiscal 2027. A net pre-tax gain of NZD 4.8 million was excluded from normalized EBIT, including a NZD 6.3 million insurance recovery related to the fire, partially offset by a NZD 1.1 million impairment and asset transfers.
Favorable foreign exchange provided a NZD 10 million revenue tailwind, while indirect costs rose NZD 7.7 million, driven by a 4% increase in headcount and higher property, marketing, and travel expenses. North America accounted for 38% of group revenue, up one percentage point, while Australia contributed 12.4%. Over 80% of revenue was generated outside New Zealand.
Management reaffirmed its long-term compound annual earnings growth target of 11% to 12% for fiscal 2027. Capital expenditure is expected to remain near NZD 15 million, slightly below the current year’s level. Current tariff pressures of around 12.5% are anticipated to be offset by pricing actions, cost reductions, and new product launches.
