WestStar Industrial’s FY25 Revenue Falls 36%, EBITDA Plummets 94%

Overview of FY25 Financial Performance

WestStar Industrial Limited (ASX, WSI), a key player in Australia's industrial services sector, has released its preliminary final report for the financial year ended 30 June 2025. The company recorded a significant revenue decline of 36.4%, with total revenue falling to $130.76 million from $205.6 million in FY24. This drop was primarily attributed to a sharp reduction in revenue from its SIMPEC division, which saw a 64.6% decrease compared to the prior year.

Despite maintaining a strong order book, WestStar posted a net loss after tax of $3.41 million, a reversal from the $3.29 million profit reported in FY24. EBITDA also contracted dramatically to $507,045, down 93.8% year-on-year, reflecting the challenging market conditions and project delays experienced during the year.

Segment Performance and Operational Highlights

The company’s three main divisions showed varied results. Alltype Engineering delivered relatively stable revenue of $85.5 million, down only 7% from the previous year, and contributed a net profit of $3.04 million. This division successfully completed the Kurri Kurri Storage Station project and several gas processing facilities, demonstrating resilience amid soft market conditions.

SIMPEC, however, faced a tough year with revenues dropping to $39.1 million. The division struggled with delayed or deferred projects, particularly in the mining and infrastructure sectors, which impacted its earnings. Encouragingly, SIMPEC secured new contracts worth approximately $28 million post-year-end, including significant projects in the lithium sector such as the Pilbara Minerals Calix Mid-Stream Project and the Tianqi Lithium Project. These contracts are expected to provide a strong foundation for FY26.

Watmar Engineering, newly acquired and focused on Defence and Marine sectors, doubled its revenue to $6.2 million and continues to expand its footprint. The division holds critical contracts with Defence Australia and is progressing strategic accreditations to enhance its market position.

Balance Sheet Strength and Strategic Outlook

WestStar’s balance sheet remains robust with cash holdings of $8.02 million and no long-term debt aside from surety bonds. The company’s equity declined modestly to $27.8 million, reflecting the net loss for the year. Management emphasized ongoing cost control measures and a disciplined approach to contract negotiations to improve margins and commercial outcomes.

Looking ahead, WestStar is optimistic about FY26, supported by a growing pipeline of opportunities across energy transition, infrastructure, and Defence sectors. The company’s diversification strategy, including expansion into Defence through Watmar Engineering and new energy projects, aims to stabilize earnings and reduce reliance on cyclical mining contracts.

CEO Robert Spadanuda highlighted the company’s commitment to safety, operational excellence, and strategic growth, noting that recent contract awards and project mobilizations position WestStar well for a turnaround in the coming year.