Southern Cross Electrical Engineering Ltd reported record underlying earnings for fiscal 2026, driven by higher margins and a AUD 150 million equity raise, even as a AUD 46.1 million WestConnex arbitration settlement weighed on statutory results.
Underlying EBITDA increased 40.5% year-over-year to AUD 77 million, while underlying net profit after tax rose 24.3% to AUD 39.4 million. Revenue declined 10% to AUD 718 million due to the completion of major projects such as the Collie BESS and Western Sydney Airport Terminal. Gross profit climbed 29.1% to AUD 136.7 million, supported by a 19% gross margin.
Statutory NPAT fell 77% to AUD 7.1 million, primarily reflecting the AUD 46.1 million WestConnex arbitration settlement, of which AUD 26.6 million was paid in cash. Additional non-recurring costs included AUD 4.4 million for acquisition amortization and AUD 4.4 million for share-based payment remeasurements tied to a 166% share price increase.
The company’s cash position reached a record AUD 261.5 million, bolstered by a AUD 150 million equity raise in June and strong cash collections. Excluding the capital raise, cash still increased by AUD 28 million. The order book expanded 18.2% year-over-year to AUD 810 million, while the company remained debt-free as of June 30.
Southern Cross declared a final fully franked dividend of AUD 0.075 per share, bringing the full-year payout to AUD 0.10 per share, a 69% increase from the prior year. The dividend yield stands at 1.6%, with a total payout of approximately AUD 30 million. The group also refinanced its banking facilities, increasing bonding capacity to AUD 220 million and adding a AUD 50 million revolving credit facility and a AUD 50 million acquisition facility.
Management guided for at least AUD 100 million in EBITDA and EBIT for fiscal 2027, excluding inorganic growth. Data center revenue is expected to triple from AUD 120 million in FY26, while the company targets smaller, complementary acquisitions in Queensland and Victoria, focusing on fire, security, high-voltage, power lines, and mechanical HVAC segments.
