Acrow Confirms FY25 Sales Up 23%, EBITDA Rises 9%, EPS Dips Slightly
Acrow Limited confirms FY25 financial guidance with solid sales and EBITDA growth, while securing a significant seven-year contract extension with Origin Energy that bolsters its Industrial Access division outlook for FY26.
- FY25 sales expected to rise 23% to $260-270 million
- EBITDA forecasted between $80-83 million, up 9%
- Slight EPS decline projected despite profit growth
- Origin Energy Surat Basin contract extended for 7 years, valued at $28 million
- Industrial Access division’s secured contracts exceed $230 million
Acrow Delivers on FY25 Guidance Amid Market Challenges
Acrow Limited (ASX, ACF) has reaffirmed its financial guidance for the fiscal year ended June 30, 2025, signaling continued momentum despite some headwinds in project starts. The company anticipates sales growth of approximately 23%, reaching between $260 million and $270 million, alongside a 9% increase in EBITDA to a range of $80 million to $83 million. However, earnings per share are expected to dip slightly, reflecting ongoing investments and margin pressures.
Strong Contract Wins and Pipeline Highlight Growth Potential
Key lead indicators underpinning Acrow’s confidence include a 26.5% rise in secured hire contract wins, now totaling $98.2 million, and a 15% increase in the tender and quote pipeline to $217.5 million. These figures suggest robust demand for the company’s construction systems and services, particularly in its Industrial Access division, which has become a vital growth engine.
Major Contract Extension with Origin Energy Bolsters Long-Term Revenue
In a significant development, Acrow secured a seven-year extension to its maintenance contract with Origin Energy in the Surat Basin, valued at $28 million. This deal not only reinforces the company’s foothold in the industrial access market but also adds to a forward order book exceeding $230 million in secured labour hire contracts. Such long-term agreements provide a stable revenue base and enhance visibility for future earnings.
Strategic Focus on Diversification and Innovation
CEO Steven Boland highlighted the company’s strategic shift towards diversifying revenue streams through investments in Industrial Access and formwork-related product lines like Jumpforms and Screens. Despite delays in some project starts affecting the Formwork division, Acrow’s ability to open new profitable channels demonstrates resilience and adaptability in a competitive construction services market.
Looking Ahead to FY26
With FY26 off to a positive start, particularly in the second half, Acrow’s leadership remains optimistic about sustaining growth. The combination of a strong contract pipeline, recurring revenue from long-term agreements, and ongoing capital investment positions the company well to navigate market uncertainties and capitalize on infrastructure demand across Australia.
Bottom Line?
Acrow’s blend of steady contract wins and strategic diversification sets the stage for a compelling FY26, but investors will watch closely how EPS pressures evolve.
Questions in the middle?
- What factors are driving the slight decline in EPS despite revenue and EBITDA growth?
- How will delays in project starts impact the Formwork division’s performance in FY26?
- What risks could affect the execution and profitability of the long-term Origin Energy contract?
