SGH (SGH) H2 2026 earnings summary

Executive summary

• FY26 delivered earnings growth and margin expansion in line with guidance, with EBIT up 1% to $1.6bn and EBIT margin up 40bp to 14.7%.

• Revenue was $10.6bn, down 2% year-over-year, with underlying growth at Boral offset by normalisation at WesTrac.

• Operating cash flow rose 6% to $2.1bn, with 99% EBITDA cash conversion, supporting a 12% reduction in Adjusted Net Debt/EBITDA to 1.8x.

• Dividend increased 3% to 64cps, and an on-market buy-back of up to $500m was announced.

• Strategy remains focused on disciplined capital allocation, operational excellence, and leveraging privileged assets in industrials and energy.

Financial highlights

• Revenue: $10.6bn, down 2% year-over-year; EBITDA: $2.1bn, up 2%; EBIT: $1.6bn, up 1%.

• Underlying NPAT: $920m, flat; Statutory NPAT: $655m, up 35% due to lower significant items.

• Operating cash flow: $2.1bn, 99% EBITDA cash conversion; net debt reduced by $515m to $3.7bn.

• Dividend: 64cps, up 3%, fully franked; EPS: $2.26, flat.

• On-market buy-back of up to $500m announced.

Outlook and guidance

• FY27 guidance: flat to low single-digit EBIT growth expected, underpinned by operational efficiency and disciplined capital allocation.

• Focus remains on operational execution, pricing discipline, and scaling AI for value.

• Medium-term ambition targets 10% rolling average EBIT/EPS growth, driven by both organic and inorganic initiatives.

• Crux LNG project expected to deliver first gas in FY28, supporting future earnings.