Market Update - Profit Guidance Exceeded

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Stock SKS Technologies Group Ltd (SKS.ASX)
Release Time 1 Aug 2025, 8:20 a.m.
Price Sensitive Yes
 SKS Technologies Exceeds Profit Guidance for FY25
Key Points
  • Profit before tax of $20.8M, a 15.6% increase over guidance
  • Sales revenue of $259.5M, in line with $260M forecast
  • Profit before tax margin increased from 7.2% to 8.0%
  • Cash on hand reached $32.5M, a tenfold increase
Full Summary

SKS Technologies Group Ltd (ASX:SKS) expects to achieve an unaudited profit before tax of $20.8 million for FY25, which represents a 15.6% increase on the $18 million guidance provided to the market in May 2025. The FY25 result is an increase of more than threefold on the $6.5 million achieved in FY24. Sales Revenue of $259.5 million is in line with the $260 million forecast that was provided at the FY24 Annual General Meeting. This result represents a 90% increase compared with sales revenue of $136.3 million the previous year. Accordingly, the profit before tax margin has increased from the most recent 7.2% guidance level to 8.0%. Furthermore, cash on hand for the end of the year reached $32.5 million, which is almost a tenfold increase from $3.4 million at the beginning of the year. Chief Executive Officer, Matthew Jinks, said, 'Another year of quantum increases in key financial metrics has further validated the strategy we put in place in FY22 to target new markets with higher margin projects while expanding capacity and expertise to execute them at an exceptionally high standard. The success of that strategy has been further exemplified through the level of repeat business with clients across the full spectrum of industry in Australia.' The company begins FY26 with an opening record work on hand position of approximately $200 million and a pipeline of tendered work in excess of $500 million, that continues to offer a large and diverse range of opportunities across all markets. The Board believes the business has built the necessary operating platform to gain the optimal performance from a robust marketplace and looks forward to presenting its operational and financial performance to the market on 26 August 2025.

Guidance

Profit before tax of $20.8 million for FY25, a 15.6% increase over the $18 million guidance provided earlier. Sales revenue of $259.5 million, in line with the $260 million forecast. Profit before tax margin increased from 7.2% to 8.0%.

Outlook

The company begins FY26 with an opening record work on hand position of approximately $200 million and a pipeline of tendered work in excess of $500 million, that continues to offer a large and diverse range of opportunities across all markets. The Board believes the business has built the necessary operating platform to gain the optimal performance from a robust marketplace.