SKS Posts 92% Revenue Growth, Profit Before Tax Surges 220% in FY25
SKS Technologies has delivered a remarkable 92% revenue surge in FY25, driven by its data centre strategy and traditional business growth, while expanding bank facilities and forecasting $300 million revenue for FY26.
- 92% revenue growth in FY25, with data centres contributing over half
- Profit before tax more than tripled, EBITDA up 161%
- Bank facilities increased fourfold to $34 million
- New Melbourne office established near key data centre projects
- FY26 revenue forecast set at $300 million amid strong market demand
Robust Growth Fueled by Data Centre Strategy
SKS Technologies Group Limited (ASX, SKS) has reported an outstanding financial year ending FY25, with sales revenue soaring by 92% to $261.66 million. This surge was largely propelled by the company’s early-entry data centre strategy, which now accounts for just over half of total revenue. The traditional business also contributed significantly, achieving a 15.2% increase over the previous year.
CEO Matthew Jinks highlighted that the company’s strategic focus on data centres has not only driven revenue but also expanded the work on hand, which doubled year-on-year. This momentum reflects SKS’s ability to capture growing demand in digital infrastructure, a sector critical to Australia’s evolving technology landscape.
Financial Strength and Operational Enhancements
Profitability metrics showed even more dramatic improvements. Earnings before interest, tax, depreciation, and amortisation (EBITDA) surged by 161%, while profit before tax more than tripled, rising 219.8% to $20.79 million. The company’s profit after tax also doubled, underscoring the scalability of its cost structure and operational efficiency.
Supporting this growth, SKS secured a substantial increase in bank facilities, now totaling $34 million, more than four times the level three years ago. This financial backing, combined with a working capital base of $16 million, positions the company well to sustain its aggressive organic growth strategy.
Operationally, SKS made a strategic move by opening a new office in Melbourne’s western suburbs, close to key data centre construction sites and customers. This proximity is unique in the sector and has reportedly helped secure additional post-construction contracts, enhancing customer retention and repeat business, which rose to 94% in FY25.
Safety and Indigenous Business Growth
Despite a significantly larger workforce and concurrent large projects, SKS maintained an excellent safety record with only one lost time injury (LTI) in FY25. The company also highlighted the growth of SKS Indigenous Technologies, which increased revenue by 48.7% to $27 million and profit after tax by nearly 300%, reflecting a strong commitment to Indigenous employment and regional expansion.
Outlook and Dividend
Looking ahead, SKS is optimistic about FY26, forecasting revenue of $300 million. This outlook is underpinned by continued demand across multiple sectors including defence, corporate, and government, alongside easing inflation and expected interest rate cuts that could stimulate further investment.
The Board declared a fully franked final dividend of 5 cents per share, bringing the full-year dividend to 6 cents, marking a milestone in the company’s operational momentum and shareholder returns.
Bottom Line?
SKS Technologies’ FY25 results set a strong foundation, but sustaining this growth amid evolving market conditions will be the next test.
Questions in the middle?
- How will SKS maintain margin expansion as revenue approaches $300 million?
- What impact will macroeconomic factors like interest rates have on project demand?
- Can SKS’s unique data centre proximity strategy continue to secure repeat business?
