Simonds Posts $665.6M Revenue, $1M Profit Amid Strategic Acquisition
Simonds Group Limited reported steady revenue of $665.6 million for FY2025, alongside a modest net profit of $1.015 million, as it completed the strategic acquisition of Dennis Family Homes. The company is focused on integrating the acquisition and driving growth amid a recovering housing market.
- FY2025 revenue stable at $665.6 million
- Net profit after tax declined to $1.015 million
- Acquisition of Dennis Family Homes contributed $62.6 million revenue
- No dividends declared, focus on balance sheet rebuilding
- Leadership changes with Rhett Simonds resuming CEO role
Steady Revenue Amid Market Challenges
Simonds Group Limited closed the 2025 financial year with revenue holding steady at $665.6 million, a slight increase of 0.3% compared to the prior year. Despite this stability, net profit after tax fell sharply to $1.015 million from $4.026 million in FY2024, reflecting ongoing pressures in the residential construction sector and costs related to strategic initiatives.
Strategic Acquisition Expands Market Footprint
A key highlight of the year was the acquisition of Dennis Family Homes Pty Ltd, completed on 1 March 2025. This move added $62.6 million in revenue for the final four months of the financial year and broadened Simonds’ presence in Victoria and New South Wales. The acquisition brought with it a valuable forward order book and a portfolio of home designs, positioning the Group for growth in a recovering housing market.
Operational Performance and Margin Improvements
Simonds reported 1,526 site starts during the year, down from the previous period, largely due to a reduction in the Insurance channel, which had been unusually active in FY2024 due to builder insolvencies. However, growth in speculative and project home channels, along with the integration of Dennis Family Homes’ projects, helped offset this decline. Gross margins improved year-on-year, supported by cost efficiency initiatives and productivity gains across construction projects.
Financial Position and Cash Flow Strength
The Group maintained a healthy liquidity position with $23.3 million in cash and $47.7 million in available liquidity at year-end. Operating cash flow surged to $39.4 million, reflecting improved working capital management and a shift in project mix. The balance sheet absorbed the acquisition impact, with intangible assets rising by $17.7 million and goodwill recorded at $12.3 million, both provisional figures pending finalisation.
Leadership and Governance Updates
Leadership changes marked the year, with Rhett Simonds resuming the role of Group CEO while retaining his Executive Chair position. The Board also welcomed new appointments to key committees, reinforcing governance as the Group navigates integration and growth. No dividends were declared for FY2025, as the Board prioritises balance sheet strengthening and reinvestment in growth channels, including medium density and wholesale markets.
Outlook and Strategic Focus
Looking ahead, Simonds is optimistic about a modest recovery in housing starts and improving land sales, supported by government initiatives targeting affordable housing. The integration of Dennis Family Homes is expected to drive revenue growth and operational synergies in FY2026. The Group continues to invest in innovative product designs and channel diversification, aiming to capture evolving customer demand for affordable, turnkey housing solutions.
Bottom Line?
Simonds Group’s FY2025 results reflect a company in transition, balancing integration challenges with strategic growth ambitions amid a cautiously recovering housing market.
Questions in the middle?
- How will the integration of Dennis Family Homes impact profitability and operational efficiency in FY2026?
- What are the risks and contingencies associated with the contingent consideration linked to the acquisition?
- How will macroeconomic factors, such as interest rates and housing affordability, influence Simonds’ sales channels going forward?
