Korvest (KOV) H2 2026 earnings summary

Executive summary

• Revenue for FY26 reached $129.54m, up 8.3% year-over-year, driven by robust day-to-day and small project markets, especially in industrial products.

• Achieved strong momentum in the second half, supported by data centre development and infrastructure projects.

• Completed major capex investment with Kilburn factory and expanded warehouse capacity in NSW, QLD, and WA.

• Finalized a $1.1 million remediation claim in July 2026, to be recognized in FY27 income.

• FY27 begins with a record order book and successful ERP transition.

Financial highlights

• Sales increased 8.3% year-over-year to $129.54m for June 2026.

• EBIT decreased 3.3% to $18.29m; NPAT declined 5.7% to $12.41m compared to June 2025.

• Operating cash flow dropped 68% to $5.99m; EPS fell 6.3% to 104.9¢.

• Fully franked final dividend of 40.0¢ per share declared, following an interim dividend of 25.0¢ per share; DRP at 5% discount to VWAP.

• Record capex of $11.29m, funded from operating cash flows.

Outlook and guidance

• FY27 starts with record orders on hand and strong demand in all sales channels.

• Major project schedules expected to deliver strong volumes, though subject to client schedule changes.

• Robust outlook for infrastructure, with a strong pipeline in road, rail, and data centre construction.

• Day-to-day and project markets anticipated to remain strong, contingent on broader economic conditions.

• Working capital requirements will stay high in line with the record order book.