How FOS Capital’s Acquisitions Sparked a 48% Profit Surge in FY25

Strong Financial Performance Amid Strategic Expansion

FOS Capital has delivered a robust FY25 financial performance, underscoring the success of its growth strategy that combines organic expansion with targeted acquisitions. The company reported a 4% increase in sales to $25.5 million and a 43% jump in EBITDA to $2.1 million, reflecting improved operational efficiency and scale benefits. Net profit after tax rose by 48% to $0.9 million, while earnings per share increased 47% to 1.72 cents, signaling enhanced shareholder value.

Operating cash flow more than doubled to $2.3 million, highlighting strong cash generation capabilities that support ongoing investment and debt management. This financial momentum is underpinned by FOS’s ability to leverage operating scale and purchasing power, as evidenced by a 400 basis point expansion in EBITDA margin since FY22.

Strategic Acquisitions Bolster Market Position

Central to FOS Capital’s growth story are its recent acquisitions of Aldridge Traffic Systems (ATS) and Glowing Structures. ATS, acquired in June 2025, enhances FOS’s footprint in the road lighting sector, a market with high entry barriers due to stringent regulatory approvals. The integration of ATS has already yielded a dedicated sales team and a growing order pipeline, with $0.56 million in procured orders and $1.8 million in active quotes.

Meanwhile, the May 2025 acquisition of Glowing Structures, a Melbourne-based specialist lighting design consultancy, significantly expands FOS’s presence in lighting services. This move opens opportunities to convert design specifications into product sales, with Glowing Structures’ FY24 specifications valued at $14 million. Together, these acquisitions complement FOS’s existing manufacturing and distribution capabilities, positioning the company as a more comprehensive provider in the commercial and road lighting markets.

Market Consolidation and Growth Outlook

Operating in highly fragmented markets estimated at $500 million, with adjacent markets exceeding $1 billion, FOS Capital is executing a clear strategy to consolidate through both organic growth and accretive M&A. The company aims to increase its market share from 5% to 15% in the medium term while targeting an EBITDA margin above 10%. This ambition is supported by a well-capitalized balance sheet, with cash balances rising 47% to $2.5 million and net assets growing 42% to $14.1 million.

FOS’s order book and active quotes provide solid visibility into FY26, reflecting ongoing government infrastructure spending and the company’s growing reputation as a preferred supplier. The successful integration of seven acquisitions to date, combined with operational optimizations such as facility consolidations, has created a platform for sustained earnings growth and margin improvement.

Leadership and Market Position

Founder-led and majority founder-owned, FOS Capital benefits from experienced leadership with deep industry expertise. Managing Director Con Scrinis and Executive Director Michael Koutsakis bring decades of lighting industry experience, supported by a stable shareholder base including SKM Investment Group, which holds 45.8% of shares. This continuity and strategic focus underpin confidence in FOS’s ability to navigate competitive pressures and capitalize on market opportunities.