• Record gross sales of $3.0 billion, up 9% on prior year
• Profitability improved, with EBITDA up 11% and PBT up 11.4%
• Ongoing focus on solutions, customer experience, operational excellence, and people

In the Chair's Address to Shareholders at Data#3 Limited's 2025 Annual General Meeting, the Chair outlined the company's strong financial and operational performance in FY25. Data#3 delivered record gross sales of $3.0 billion, up 9% on the previous year, with growth across all three operating segments. Profitability also improved, with total gross profit increasing 7.3% to $289.7 million and the Internal Cost Ratio improving from 80.6% to 79.7%, benefiting from operational efficiencies and a restructure in the Infrastructure Solutions business. EBITDA increased 11% to $66.4 million, and profit before tax rose 11.4% to $69.1 million. The Chair highlighted that these results demonstrate the relevance and momentum of Data#3's integrated solutions, as well as the company's ability to adapt to changing technologies and market conditions. The company's balance sheet remained strong and debt-free, with net assets of $84 million and a high cash conversion rate. The Chair also outlined the Board changes and renewal undertaken during FY25 as part of a deliberate process of succession planning. The Managing Director and CEO then provided further detail on the operational performance, with the Software Solutions business achieving gross sales exceeding $2 billion for the first time, the Infrastructure Solutions business rebounding strongly in the second half, and the Services business delivering another solid performance. The company continued to expand and refine its solution offerings across Hybrid Cloud, Modern Workplace, Security, Data and AI, and Connectivity. Looking ahead to FY26, the company expects its first half Gross Profit for Software to be slightly below 1HFY25 due to the net impact of the Microsoft incentive changes, but this will be offset by a stronger performance in the Infrastructure Solutions business, resulting in overall Gross Profit growth in the high single digits for the full year.

In FY26, Data#3 expects its first half pre-tax profit to be in the range of $32 million to $34 million. The Software business is expected to return to growth in 2HFY26, resulting in a similar full year Gross Profit contribution as the prior year. The company expects a solid full year contribution from Infrastructure Solutions and Services to deliver overall Gross Profit growth in the high single digits for FY26, with a slightly higher skew towards the second half compared to the prior year.

Looking forward, the 2032 Brisbane Olympics and Paralympics represent a unique opportunity for Data#3 to leverage its expertise in large-scale infrastructure projects. The company's broad customer base, including customers in federal, state, and local governments, education, health, the corporate and resources sectors, continues to benefit from its integrated solutions, transformation capability, and adoption of AI.