Southern Cross Electrical Engineering Ltd. reported a 40.5% jump in underlying EBITDA to a record $77.0 million for the year ended June 30, 2026, driven by margin expansion despite a 10.3% decline in revenue to $718.7 million.
Underlying net profit after tax rose 24.3% to $39.4 million, while statutory net profit fell 77.6% to $7.1 million due to $46.1 million in costs tied to the WestConnex arbitration settlement. Gross profit increased 29.1% to $136.7 million, lifting the gross margin to 19.0% from 13.2% a year earlier.
The company set a target of at least $100 million in EBITDA for the fiscal year ending June 30, 2027, representing roughly 30% growth. Cash and cash equivalents surged to a record $261.5 million, up from $88.6 million the prior year, supported by a $150 million institutional placement completed in June at a 0.5% discount to market.
Revenue declined across resources and infrastructure segments, falling 29% to $360 million and 18% to $112 million, respectively. Commercial revenue rose 61% to $247 million. Geographic exposure remained concentrated in New South Wales and the Australian Capital Territory, which accounted for over 75% of total revenue at $356 million.
The order book expanded 18.2% to a record $810 million, with electrical services representing 59% of revenue. Management highlighted the Collie Battery Energy Storage System project, a $250 million contract for Synergy’s 500MW/2,000MWh facility, as a key milestone. Recurring revenue reached $220 million, or 31% of total revenue, supported by the Force Fire acquisition.
The company also increased its financing capacity, raising bank guarantees and surety bonds from $150 million to $220 million and adding a $50 million revolving credit facility and a $50 million acquisition facility. A fully franked final dividend of 7.5 cents per share was declared, bringing the full-year payout to $18.9 million, a 67% increase from the prior year.
Southern Cross Electrical said it is positioning for growth tied to data centers, infrastructure, energy and electrification, while navigating near-term headwinds from the WestConnex settlement and shifting sector demand.
