Tasmea Projects 34% NPAT Growth in FY26 with Record Order Book and Founder Reinvestment

Strong Momentum Heading Into FY26

Tasmea Limited (ASX – TEA) has set an ambitious growth target for the financial year ending June 2026, projecting a 34% increase in net profit after tax (NPAT) to A$70 million. This follows the company’s reaffirmation of its FY25 NPAT guidance at A$52 million, underscoring a solid earnings trajectory that positions Tasmea well ahead of its long-term incentive plan targets.

The company’s forecasted earnings before interest and tax (EBIT) of A$110 million represents a substantial 45% statutory uplift, reflecting the strength of its diversified service offerings and disciplined strategic execution. Tasmea’s management attributes this momentum to a combination of organic growth, revenue synergies across its national portfolio, and the successful integration of programmatic acquisitions completed during FY25.

Record Order Book Fuels Confidence

A key driver behind Tasmea’s optimistic outlook is its record contracted order book, which provides strong visibility into future earnings. The company continues to secure and expand long-term maintenance service agreements across essential sectors such as mining, infrastructure, energy connectivity, and telecommunications. These contracts underpin a recurring revenue base that enhances earnings predictability and strategic resilience.

By focusing on fixed plant maintenance, infrastructure upgrades, and electrification projects, Tasmea is capitalizing on growing demand in critical industries. This approach not only supports sustainable revenue growth but also positions the company to benefit from ongoing infrastructure investment trends in Australia.

Strategic Execution and Founder Confidence

Tasmea’s growth strategy hinges on a scalable operating model and targeted acquisitions that add specialist capabilities aligned with customer needs. The company’s subsidiaries operate under long-term maintenance service agreements, enabling margin expansion and operational efficiency through cross-selling and revenue synergies.

Founder and Managing Director Stephen Young highlighted the company’s confidence by noting that he and his executive team have reinvested over A$30 million since the company’s IPO in April 2024. This significant founder reinvestment signals strong alignment between leadership and shareholder interests, further reinforced by the participation of more than 100 team members in the Long-Term Incentive program.

Young emphasized the critical role of Tasmea’s workforce in delivering operational excellence and safety, which form the foundation of the company’s value proposition. As Tasmea continues to integrate its acquisitions and expand its service footprint, the company aims to maintain above-market, sustainable returns through high-margin specialist services.

Outlook and Market Positioning

Looking ahead, Tasmea’s guidance excludes any potential future acquisitions in FY26, suggesting that the company’s current growth projections are underpinned by solid organic performance and existing contracts. This conservative stance provides investors with confidence in the sustainability of earnings growth while leaving room for upside should further acquisitions materialize.

With a diversified customer base spanning mining, oil and gas, defence, infrastructure, power, telecommunications, and environmental services, Tasmea is well-positioned to navigate sectoral shifts and capitalize on infrastructure spending trends. The company’s integrated service offerings and national footprint offer a competitive advantage in securing long-term contracts and delivering consistent returns.