Brickworks has announced a 141% surge in statutory net profit after tax (NPAT) including significant items to A$21 million (US$13.2 million) in the first half of the 2025 financial year (H1 FY25).
The 81-year-old building products maker said this compared with a $52 million loss in the previous corresponding period (pcp) ending January 2024, which was significantly affected by property revaluations.
Brickworks, which is 43% owned by 122-year-old industry investment company Washington H. Soul Pattinson and Company (ASX: SOL), said underlying NPAT before significant items soared 308% to $76 million from a $37 million loss.
Directors declared a fully franked interim dividend of 25 cents per share, compared with 24 cents a year earlier, to be paid on 1 May to shareholders registered on 9 April.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations was $148 million in the first half, compared to a loss of $40 million in the pcp.
Building Products underlying EBITDA was 4% lower in Australia at $50 million and 115% down in North America to a $3 million loss, due to challenging market conditions, while property EBITDA rose 121% to $38 million and investments EBITDA fell 4% to $73 million.
Chief Executive officer Mark Ellenor said demand for building materials in Australia was expected to remain at a cyclical low, with subdued sales activity expected to continue for the remainder of the current calendar year.
“Looking beyond the short-term market weakness, the broader macro-economic environment is showing signs of demand returning to the building materials sector, supported by the recent cut in the cash rate,” he said in an ASX announcement.
He said challenges persisted in North America with sales expected to remain subdued for the remainder of 2025 but forecast starts indicated a recovery in building activity across core regions and segments from 2026 and strong growth from 2027.
Brickworks’ 26% shareholding in Soul Patts was expected to continue to deliver a stable and growing earnings stream over the long term.
Brickworks (ASX: BKW) shares closed eight cents (0.34%) lower at $23.80 on Wednesday, capitalising the company at $3.64 billion.
