Interim Results Announcement
| Stock | SGH.ASX (SGH.ASX) |
|---|---|
| Release Time | 11 Feb 2026, 7:31 a.m. |
| Price Sensitive | Yes |
SGH Delivers Strong HY26 Result with Industrial Services Growth and Margin Expansion
- EBIT of $844m flat, or +22% on 2H FY25
- EBIT Margin of 15.6%, up 30bp
- Boral EBIT of $284m, +10%
- Industrial Services EBIT of $774m, +1%
SGH Ltd (ASX:SGH) announces its results for the half-year ended 31 December 2025, delivering improved earnings and strong cash flow. The result was underpinned by the disciplined execution of the SGH Way operating model, driving EBIT margin expansion led by Boral and WesTrac. Revenue was strong at $5.4 billion. EBIT margin expanded by 30 basis points to 15.6%, resulting in a stable underlying EBIT of $844 million. Underlying NPAT of $518 million and underlying EPS of $1.27 both grew 2%. All core financial metrics improved sequentially (i.e. vs 2H FY25), highlighting a recovery in customer activity across core sector exposures. Strong operational performance and cost discipline supported a 32% increase in operating cash flow to $1.1 billion. This enabled a 4% reduction of the Adjusted Net Debt to EBITDA ratio to 1.9x, below SGH's target range, providing greater balance sheet capacity to pursue value-accretive growth. SGH declared a fully franked interim dividend of 32cps, up 7% and consistent with the approach to deliver stable and growing dividends over time.
SGH's focus in FY26 remains on the disciplined application of the SGH Way operating model, with an emphasis on sales execution, operational efficiency, and innovation to deliver the full potential of our businesses. The strong first half result and balanced outlook for core sector exposures supports the reiteration of FY26 guidance of 'low to mid single-digit EBIT growth.'
SGH enters the second half with momentum, and a clear focus on continuing delivery of its strategic priorities. The business is particularly proud of the work it does to support its customers and the contribution they make to the Australian economy. Delivering a strong performance across its financial, operational, and safety metrics is a reflection of the calibre of the entire SGH team and demonstrates the disciplined execution of the SGH Way operating model.