Diversified investment company SGH has posted a 9% increase in net profit after tax (NPAT) to $924 million for the 2025 financial year and forecast similar growth in the current year.
The company said earnings before interest and tax (EBIT) increased 8% to $1.537 billion on revenue, which edged 1% higher to $10.744 billion in the 12 months ending 30 June 2025, but underlying earnings per share (EPS) eased 2% to $2.27.
The company declared a fully franked final dividend of 32 cents per share, compared with 30 cents a year earlier, to be paid on 10 October to shareholders registered on 12 September, bringing total FY25 dividends to 62 cents, compared with 53 cents.
SGH, about 61% owned by businessman Kerry Stokes, said it expected to deliver low to mid single-digit percentage growth in EBIT in FY26, supported by the margin improvements achieved and robust customer activity across core market exposures.
The market reacted negatively to the result with SGH (ASX: SGH) shares falling $4.66 (8.99%) to $47.20 at the time of writing, capitalising the company at $19.38 billion, after ranging between $45.60 and $49.04.
Managing Director and Chief Executive Officer Ryan Stokes said EBIT growth was primarily driven by SGH’s building materials business Boral, and heavy equipment subsidiary Westrac and was in line with guidance.
“We are pleased with the result delivered in FY25, which demonstrates the strength of our diversified Industrial Services businesses and the disciplined execution of the SGH Way operating model,” Stokes said in an ASX announcement.
He said SGH generated strong cash flows, with its industrial services businesses converting 90% of earnings before interest, tax, depreciation and amortisation (EBITDA) to cash and lifting operating cashflow by 49%.
“The result reflects the disciplined execution of the SGH operating model, enabled by the hard work and commitment of our people and their focus on supporting our customers,” Stokes said.
SGH’s 40%-owned Seven West Media reported a 27% fall in FY25 net profit to $57 million on revenue which dropped 4% to $1.354 billion, due to a weaker television advertising market.
The company, which owns the Seven Network, newspapers and magazines, said results improved in the second half with EBITDA growing 6% and underlying NPAT rising 33%, in line with guidance and marking the first half yearly growth since FY22.
Seven West (ASX: SWM) shares also dropped, losing one cent (6.67%) to 14 cents, valuing it at $223.18 million.
