Southern Cross Electrical Engineering reported a 40.5% rise in underlying EBITDA to A$77 million for the year ended June 30, 2026, while statutory net profit fell 77.6% to A$7.1 million after A$46.1 million in WestConnex arbitration costs.
Revenue declined 10.3% to A$718.7 million, reflecting a 29% drop in resources work to A$360 million. Commercial revenue surged 61% to A$247 million, offsetting softer infrastructure and resource segments. Gross profit jumped 29.1% to A$136.7 million, lifting margins to 19.0% from 13.2%.
Cash holdings reached a record A$261.5 million, up from A$88.6 million a year earlier, following a A$144.7 million institutional placement at a 0.5% discount in June. The company remains debt-free, with bank guarantee capacity increased to A$220 million. A fully franked final dividend of 7.5 cents per share was declared, bringing the full-year payout to 10 cents per share.
Order book rose 18.2% to a record A$810 million, led by a 27% increase in New South Wales and ACT contracts. The company reported four consecutive years without a lost-time injury, logging 2.9 million incident-free hours.
Data center operations generated A$120 million in revenue for FY26, with management forecasting a threefold increase to approximately A$360 million in FY27. Australian data center capacity is projected to expand from 1.6 gigawatts today to 3.2 gigawatts by 2030, potentially reaching 4.7–7.4 gigawatts by 2035. Trivantage Manufacturing, acquired in 2020, supplied switchboards to six data centers in FY26 and is targeting further growth in hyperscale infrastructure.
Underlying EBIT rose 40.3% to A$64.4 million, while underlying net profit after tax increased 24.3% to A$39.4 million. Recurring revenue reached A$220 million, or 31% of total revenue. Guidance for FY27 calls for EBITDA of at least A$100 million, representing at least 30% growth over FY26 underlying EBITDA.
The company’s five-year CAGRs for EBITDA, EBIT and earnings per share stand at 21.1%, 23.6% and 21.5%, respectively. Southern Cross Electrical trades on the ASX under the ticker SXE at A$4.46, down 4.1% on the day.
