Korvest Doubles Kilburn Capacity After Record FY25 Profit
Korvest has reported a record $13.2 million profit for FY25, driven by strong performances in its EzyStrut and Galvanising divisions, and is now embarking on a major expansion of its Kilburn manufacturing site.
- Record FY25 revenue of $119.6 million and profit after tax of $13.2 million
- Major Kilburn site expansion underway, doubling manufacturing footprint and capacity
- Special dividend of 10 cents declared on top of a 40 cent final dividend
- Zero lost time injuries and progress on ESG initiatives including emissions reduction
- FY26 trading ahead of first half FY25 with ongoing infrastructure project pipeline
Record Financial Performance
Korvest has delivered a standout financial year in 2025, posting record revenue of $119.6 million and an after-tax profit of $13.2 million. This strong performance was underpinned by solid contributions from both its EzyStrut building products division and Korvest Galvanisers. Despite some operational challenges, including a significant production disruption at the galvanising plant, the company managed to mitigate costs through insurance recoveries, preserving profitability.
Operational Highlights and Market Dynamics
The EzyStrut business experienced a tale of two halves, with the first half flat due to winding down of major projects, followed by an accelerated delivery of two new projects in the second half, including one completed in record time. While the day-to-day market remained stable, wholesaler improvements offset reduced contractor activity. Meanwhile, the galvanising division increased throughput despite a 17-day production halt, benefiting from a major renewables sector project and internal demand from EzyStrut.
Strategic Expansion at Kilburn
Looking ahead, Korvest is investing heavily in its Kilburn site with a two-phase redevelopment project. Phase 1, already underway, involves constructing a new fabrication facility that will expand the manufacturing footprint by 80%. This expansion is set to double key capacities including strut roll forming, laser cutting, and weld bays, while also bringing powder coating in-house to improve margins and reduce lead times. Phase 2 will see the installation of new machinery costing around $4 million, with completion expected by late 2026. The project is being funded from operating cash flows, reflecting confidence in sustained growth.
Safety, ESG, and Governance Progress
Korvest also highlighted its commitment to workplace safety, achieving zero lost time injuries for the year; a notable milestone. Environmental, social, and governance (ESG) initiatives advanced with reductions in carbon emissions despite fleet expansion, and energy efficiency improvements in galvanising operations. The Board has refreshed its skills matrix and succession plans to ensure strong governance and leadership continuity.
Outlook and Market Position
Trading in the current financial year is tracking ahead of the first half of FY25, supported by a healthy pipeline of infrastructure projects expected to be awarded in FY26. While competition has increased in some sectors, Korvest’s expanded capacity and operational improvements position it well to capture growth opportunities. The company also declared a special dividend of 10 cents in addition to the final dividend, reflecting robust cash flow generation.
Bottom Line?
Korvest’s bold Kilburn expansion and record profits set the stage for sustained growth amid evolving market conditions.
Questions in the middle?
- How will the Kilburn expansion impact Korvest’s margins and competitive positioning?
- What is the outlook for major infrastructure project awards in FY26 and their timing?
- How will inflationary pressures on costs affect profitability going forward?
