Symal’s Revenue Miss and Acquisition Risks Pose Questions for FY26

Strong Financial Performance in First Year as a Listed Company

Symal Group Limited has reported a solid set of financial results for the fiscal year ended 30 June 2025, surpassing key earnings targets set out in its Prospectus. The company posted a normalised EBITDA of $106.1 million, comfortably above the $102.3 million forecast, and a 22% increase compared to the prior corresponding period. Net profit after tax (NPAT) also saw a significant uplift, rising 50% year-on-year to $45.7 million, beating the $41.6 million guidance.

While revenue came in at $901.7 million, representing a 15% increase over the previous year, it fell short of the Prospectus estimate of $961.1 million. This shortfall is attributed primarily to project timing shifts, with some revenue expected to flow into FY26.

Strategic Acquisitions Bolster Growth and Market Position

Symal’s growth strategy is clearly reflected in its recent acquisitions. The purchase of Ascot Bin Hire in April 2025 expanded the company’s footprint in waste recovery and recycling, a sector aligned with sustainability trends. More recently, Symal signed a purchase agreement for Locale Civil, a founder-led business with a guaranteed minimum $230 million recurring revenue contract over six years, enhancing Symal’s exposure to the utilities sector.

These acquisitions not only diversify Symal’s service offerings but also strengthen its recurring revenue streams, positioning the company well within resilient markets. The combined work-in-hand (WIH) stood at an estimated $1.76 billion as of 30 June 2025, reflecting a healthy project pipeline.

Operational Excellence and Innovation Drive Margins

Operationally, Symal maintained a strong safety record with low incident rates, underpinning its reputation for reliability. The contracting services segment saw a 13.6% increase in EBITDA, supported by a self-performing model and procurement efficiencies. Meanwhile, the plant and equipment division delivered an impressive 33.7% EBITDA growth, fueled by a $45 million capital investment in fleet expansion and robust demand for equipment hire along Australia’s East Coast and South Australia.

Innovation remains a core pillar of Symal’s strategy. The launch of Searo, an in-house electrical contracting business, positions the group at the forefront of the energy transition. Additionally, the Sycle business advanced its capabilities in resource recovery and alternative fuels, with plans underway for a commercial-scale remanufacturing facility in Melbourne. The integration of artificial intelligence to streamline processes further signals Symal’s commitment to future-proofing its operations.

Outlook and Dividend Declaration

Looking ahead, Symal projects FY26 normalised EBITDA in the range of $115 million to $125 million, reflecting confidence in its expanding project pipeline and recent acquisitions. The board declared a fully franked final dividend of 5.9 cents per share, consistent with Prospectus expectations, underscoring the company’s commitment to delivering shareholder value.

Founder and Group Managing Director Joe Bartolo highlighted the company’s strong balance sheet and strategic positioning, emphasizing the role of its people and ESG initiatives in driving sustainable growth. With a net cash position of $46.1 million and a diversified portfolio across infrastructure, power, renewables, and utilities, Symal appears well-equipped to navigate the evolving market landscape.