Data 3 Surpasses $3 Billion Sales Mark with Double-Digit Profit Growth

Record Growth Amid Market Challenges

Data 3 Limited (ASX – DTL), a leading Australian IT services and solutions provider, has announced its financial results for the year ended 30 June 2025, marking another milestone in its growth trajectory. The company reported gross sales of $3.0 billion, a 9% increase from the previous year, alongside a robust 11.4% rise in net profit before tax to $69.1 million. These figures underscore Data 3’s ability to outperform the broader Australian technology market despite ongoing global economic uncertainties and domestic political shifts.

Driving Profitability Through Recurring Revenue and Efficiency

Central to Data 3’s success has been its strategic emphasis on recurring revenue streams, which now constitute 69% of total revenue, up from 67% last year. This growth reflects the company’s focus on multi-year software licensing, maintenance support, managed services, and “As a Service” offerings. Software Solutions sales surged nearly 11%, while Services grew by almost 7%, and Infrastructure Solutions rebounded to deliver over 4% growth after a challenging first half.

Operational efficiency gains, particularly through automation and restructuring within Infrastructure Solutions, contributed to a 12% increase in earnings before interest and tax (EBIT) to $59.9 million. This efficiency, combined with strong gross profit growth of 7.3%, helped Data 3 expand its margins and profitability.

Shareholder Returns and Corporate Culture

Data 3’s board declared a fully franked dividend of 28.10 cents per share for FY25, up 10.2% from the prior year, reflecting confidence in the company’s cash flow and balance sheet strength, which notably carries no borrowings. The dividend payout ratio stood at a healthy 90.3%, rewarding shareholders amid a competitive technology sector.

Beyond financials, Data 3 continues to invest in its people and culture, earning recognition as a HRD Employer of Choice for the tenth consecutive year and certification as a Great Place to Work. Customer satisfaction also improved, with ratings rising to 4.33 out of 5, signaling strong client relationships and service delivery.

Looking Ahead – Navigating Industry Transitions

While the company expects some short-term pressure on Software Solutions due to Microsoft channel incentive transitions, Data 3’s outlook remains positive. Growth opportunities are anticipated in Infrastructure Solutions and Services, particularly in areas such as end-user computing, networking, and server/storage solutions. The maturation of managed services and the expanding role of artificial intelligence across offerings are also expected to drive recurring revenue and innovation.

Data 3 is not providing specific FY26 guidance at this stage but anticipates a seasonal sales peak in May and June, continuing its pattern of sustainable earnings growth. Investors will be watching closely to see how the company balances these industry shifts with its strategic investments in lifecycle services and technology evolution.