Run through a presentation for the company's FY 2026 results. Gary and I are very pleased to sit with you today and run through the FY 2026 results, which sees another consecutive year of record performance across all metrics. Yep, thanks, Simon. Just running through sales revenue, up 33% from FY 2025 to FY 2026, which is a quantum leap, but probably more importantly, a 64% increase from the first half of FY 2026 to the second half, closing the year at just short of AUD 348 million, which we are very pleased about. EBITDA up 81%, net profit before tax up 89%, and a 93% increase on our net profit after tax. Again, significant quantum leaps across all of those metrics.
The company continues to produce strong operating cash flows of AUD 45.66 million for the year, and linked to the strong performance and the overarching performance of the business in FY 2026, the board has declared a dividend of AUD 0.065 for the second half, representing AUD 0.10 for the full year, to give back to the shareholders that have been on the journey for quite a number of years. Maybe if we just jump to the next slide, please, Simon. Gary can run us through the P&L.
Okay, thank you, Matthew. The main takeaway from this page is that we have seen revenue growth of 33%, but really expense growth of 28.2%. With the exception of depreciation and amortization, every expense line has grown at a lower rate than the revenue line. Obviously the increase in depreciation reflects the increase in CapEx, that we have undertaken during the year. As Matthew mentioned, sales revenue is up 33% and 64% up on the previous half. We are currently sitting on a fixed cost base that we think can support AUD 500 million of revenue, and at this particular stage, that is all quite logical. One of the other key points that comes out of this particular page is the continued increase in profit before tax margin, where we can see that graph out to one side where we have got 11.2% for the year. Thank you, Matthew.
Thanks, Simon. As we get into the detail of the business, we might just start with the traditional revenue of the business, and we will get to the data center revenue and unpack that a little bit further in the slide deck. But really pleasing, continued growth of traditional revenue of the business. We can see there a compounding annual growth rate of 19.1% over the last three years and 16% from FY 2025 to FY 2026, with a representation of a little over AUD 140 million or 40% of the business we saw in the traditional revenue of the business. We are obviously seeing some really significant growth in the data center revenue at 47.6% from FY 2025 to FY 2026, and that is really becoming a significant part of the business.
But certainly within the four walls of the business, the traditional revenue of the generation of revenue for the business is really important to us. We embarked on a number of initiatives over the last few years, and it is really important to us that we continue to see that growth. So really pleased with 16% on the traditional revenue of the business. Thanks, Simon.
Thank you, Matthew. On this particular one, cash flow from operations, obviously another strong year, up from AUD 35 million- AUD 45 million. Obviously, a very strong first half. Working capital is very similar to the previous year. We just point out that is on the back of the Delta acquisition, the increased CapEx and dividends that have been paid. Obviously, net cash flow will come back as a result of the Delta CapEx and dividends. Just moving over to the trade payables column. So trade payables increased overall in line with sales as at 30th of June 2026, and consistent with the stages of our major projects, as well as the corresponding reduction in contract liabilities, which also aligns with the stages of the current projects. Bank facilities, we have just continued to increase them over the years.
We are now sitting at bank guarantee facilities of AUD 52 million, and we have finished the year with a cash on hand of AUD 49.6 million.
Thanks, Gary. Just moving to the next one. Yep, thanks, Simon. Over the last sort of four or five years, we widely talk about an aggressive organic growth strategy. We break down our strategy into growth, consolidation, growth, consolidation, and we are and have achieved many things through FY 2026, whether it be on the growth or the consolidation side. We continue to pursue an aggressive organic growth strategy, and we do feel that we have got a lot more to get out of that organic growth. We do remain opportunistic to acquisitions, and as part of that, and we have spoken about that over the last couple of years, and, in January of this year, we acquired a New South Wales-based business called Delta Elcom. And again, I will talk a little bit more about that further in the slide deck.
That was fully integrated through the early part of this calendar year. We have significantly grown our work on hand by 56%, now sitting at AUD 312 million off a AUD 200 million base level. Really some significant achievements across that. We maintain a rigorous approach to all of our investment opportunities, and we are always keeping a constant eye on our capital needs. As Gary said, we have seen continued support from the Commonwealth Bank, who is our banker, now having bank facilities of AUD 52 million. We have maintained our working capital level, even despite the AUD 10.9 million related to the acquisition of Delta Elcom. We maintain a really high percentage of repeat business, now currently sitting at 95% of repeat business across, not just the data center space, but also the traditional revenue of the business.
As I touched on earlier, a 16% increase in our traditional revenue up to AUD 140 million for FY 2026, which is a really pleasing metric for us. Thanks, Simon. Just to expand on the Delta Elcom integration. As I mentioned, January of 2026, we acquired Delta Elcom, which is a New South Wales based business. Quite a small business in the scheme of things in terms of turning over roughly AUD 25 million and bringing with it 40 resources. Primarily working in and around the data center space, but at a small level. We did feel that bringing the businesses together to continue to pursue the data center opportunities and much larger opportunities as time goes, it will be a stepped approach.
If you have heard us talk before, you would have heard us say that you will not be hearing us announce a major project in the data center space in New South Wales off the back of Delta Elcom. It will be a stepped approach. We do know what it takes to deliver these sorts of projects, and the last thing that we want to do is take on something that we have not got solid capability for that will give us a poor performing contract or fracture a relationship that we are already seeing really great results with. We will build capability and have already begun that process. We have began tendering work at a larger scale than what traditionally Delta would have prior to the sale to us. Again, it will be a stepped approach. The integration is 100% completely done.
It is important to note that in consultation with the original owners of Delta Elcom, that we decided to rebrand the business from day one to SKS Technologies. It does operate in the New South Wales region as SKS Technologies, and has done now for the last four or five months since the acquisition. We are really pleased with how, more broadly, the company and everyone in it has embraced that acquisition, and how the original founders and the resources that have come with that acquisition have morphed into the broader group. Thanks, Simon. In terms of the consolidation, as the business continues to grow, really important for us that we have had a strong focus on recruiting the right people. We have seen significant top line growth in terms of sales.
We've got a significant growing work in hand position, another step change in our pipeline that's coming behind it. We can't convert that work and deliver all that work without the right people. We've had a strong focus on that. As I sit here today, including our group training apprentices, we now hover around 1,300 staff members, and growing. We feel that the team has done a great job in terms of resourcing, in terms of our recruitment, getting the right people in the business with the right skill set. Over the last 12- 18 months, we've introduced a HV division to the business. We've obviously had to attract the right people with the right skill set. Whilst that is electrical work, high voltage work is very different to medium and low voltage work.
The right resources need to come into the business to do that, and that is a significantly growing team. We are pursuing some greater opportunities on the HV side of what is the electrical infrastructure work with some of these facilities. We've introduced a company-wide leadership program where we've identified the first 12 cohort of people as the future leaders of the business and put them through a leadership program to arm them with the right skills for their future development. We continue to build on our systems and processes. Obviously, a much larger scale business needs much stronger and growing operating platforms, and we continue to work hard at that. At the same time, we have a really strong focus on maintaining the fixed cost base of the business, which we feel we've done a great job at. With that comes the scale benefits.
Being very selective with the projects that we pursue and ensuring that we maintain our margins across all of our projects linked to that. Maintaining the cost structure of the business means that we can benefit from the scale benefits. I think we've seen that in FY 2026. We'll progressively continue to align security controls as part of the Essential Eight with our IT frameworks. We've spent a lot of money and we invest a lot of money into our IT systems to support the growth of the business and building those operating platforms. That all dovetails into not only the deliverables of the project, but also maintaining a really strong safety culture, which we need to do. I'll again talk about that a little bit in more detail shortly. I'll just jump straight to the data center forecast slide, Simon. Next slide, please.
This slide is definitely not meant to be an exhaustive list. It's really just to give the reader a flavor of some of the key players within the data center sector, whether that be from a hyperscale perspective or a data center operator perspective. There's a lot of varying forecasts out there around the sorts of opportunities and the size of facilities that these types of companies are pursuing. Even though those forecasts vary, really what all of the forecasts show is an extraordinary level of growth right across the board. We feel that we're very well positioned to pursue those increasing opportunities and increasing size in facilities with the current customer base that we're working with. Thanks, Simon.
Just to go into a little bit more detail around the data center side of our business now, where we've seen 47.6% growth in that data center revenue between FY 2025 and FY 2026.
We're seeing quantum leaps in the pipeline of activity now sitting just short of AUD 1.5 billion. Through the course of FY 2026, we secured our largest contract size to date of AUD 210 million, which goes to the capability and the delivery capability of the company, and our ability to resource those sorts of projects of that size. Throughout FY 2026, we've handed over approximately 107 MW of data center capacity, which has generated close to AUD 208 million worth of revenue. We start FY 2027 with AUD 245 million of work in hand in the data center space alone. Really significant growth when you look at FY 2024, 2025, and 2026 across all of those numbers.
As each year goes on, the capability of the business is just getting stronger and stronger off the back of those foundations year on year. Thanks, Simon. Looking at the order book more broadly, AUD 312 million is where we start FY 2027 with. That is a significant increase again from any prior year. You can see AUD 200 million was the base when we started FY 2026. A quantum leap in terms of our starting work in hand position. Data centers make up now 78% of that, just over 78% of that. Really pleasingly too, that the work in hand position and our pipeline, which I'll talk about shortly, the traditional revenue of the business is continuing to grow as well. Really strong growth in our order book, which obviously drives future revenue. Thanks, Simon.
In terms of the pipeline just touched on, the traditional work pipeline is continuing to see strong growth. It's a little bit hard not to notice the top line there of the data centers, which near on runs off the page. Again, another quantum leap. I think in May of this year, we were talking AUD 1 billion of pipeline of activity, that's now jumped up close to AUD 1.5 billion. I think once we reported it in May to now, whilst we've made some small announcements around early work packages and things like that, we haven't announced any major project or conversion of a major project in its entirety. Whilst the timing of those projects is still to unfold, there's further projects and opportunities coming on, and hence why that number is continuing to grow. Now representing 87% of the overall pipeline is data centers.
Really, really buoyant and an unrelenting demand within the data center space, and we continue to see that. Thanks, Simon. In terms of SKS Indigenous Technologies, this is an area of the business that we're very proud of and what we've achieved in a very short period of time. We feel we are making really meaningful contributions to Indigenous households by providing job opportunities. We now have over 43 Indigenous people working within the business. FY 2026 saw revenues of AUD 28.6 million and a net profit after tax of AUD 432,000. For those that aren't aware, SKS Indigenous Technologies is a for-profit business, and we use the opportunities that come through that business in order to support future pathways for Indigenous people, as well as providing back to community through a number of initiatives. Really pleased with the result of SKS Indigenous Technologies and how that continues to develop.
I won't spend too much time on this, but some of the major projects that we've either commenced or completed through FY 2026. New Footscray Hospital was the largest health project that has ever been done in Victoria, where we did the audiovisual services for. Now that that project's at a completion, it is up for a number of industry awards. Really proud of what the team has delivered there. We're involved in the redevelopment of the Westfield in Mount Gravatt in Queensland. Just coming to the final stages of handover for MEL01C, which is the third project that we've done for STACK Infrastructure as part of that MEL1 facility. 52 MW of completed data center capacity being handed over. The team has done a great result there. Thanks, Simon. Safety for us is of paramount importance.
We have an increasingly growing workforce. A 22.7% increase in number of employees throughout FY 2026, and a 32.1% increase in productive working hours on FY 2025. You can see as you've gone through the last five years there, significant changes in our employee numbers. With more employees and more productive working hours, brings a higher risk to injury, and we have a very rigorous focus and safety plans associated with that. Very pleased to report that we've had no lost time injuries throughout FY 2026, and certainly no serious injuries over the last 12- year history of the business. A fantastic safety record and we continue to maintain that. Thanks, Simon.
I guess in terms of, in summary, the current state of the business and the outlook, where we find ourselves, we do find ourselves in an area where there is an unrelenting market demand across all of the market sectors that we work in. Particularly accelerating in growth forecast in terms of the data center sector. We have a really large and growing and accelerating pipeline that's coming in behind that, again, led by the data center sector. We do feel that we remain flexible in terms of our growth strategy, whether that be organic, where we've got a lot more to get out of that off the back of laying some really strong foundations over the last five years or so. We will continue to remain opportunistic to acquisitions. We're not working on anything at the moment, but we will continue to remain opportunistic to that.
If we do feel something aligns with the overarching strategy of the business, we'll have a closer look at that. We feel that we've got a solid level of working capital, and we have a strong ability to fund the future growth of the business. We continue to see strong support from Commonwealth Bank in terms of increasing our bank facilities. When you sort of wrap your arms around that, we feel that the ability to grow and take advantage of our opportunities, we can do comfortably. The operating platform of the business, we'll continue to have a strong focus on that and making sure that we provide efficiencies to all of the people within the business to make it easy to get such a growing and increasing large number of projects delivered.
When you sort of, I guess, wrap all that up, we're comfortable in saying that our FY 2027 forecast earnings will be roughly or approximately AUD 500 million of revenue, with a AUD 60 million representation of profit before tax. Thank you, and might hand it back to you, Simon, for any questions.
Great. Thanks for that, Matthew, and thanks, Gary, as well. Just before we get to some of the analysts, I've just had a couple of questions come through. What's factored into the AUD 500 million revenue guidance in terms of work in hand, win and do, and the Delta incremental contribution?
Yeah, so we start the year with AUD 312 million. You'll see in the traditional revenue of the business, and we sort of often talk about AUD 10 million-AUD 11 million every month that we need to win and do just as business as usual. So, I think when you look at the FY 2026 traditional revenue number of AUD 140 million, that effectively, in essence, almost puts it as at a starting position of AUD 450 million. So, roughly AUD 50 million of work that needs to be won and done for the balance of the financial year. So whilst we have, I would say, some really strong conviction around converting our pipeline, that's yet to be done. So we're comfortable in saying AUD 500 million. We've obviously got a bit of work to do to win and do that AUD 50 million.
But depending on project timings and things like that, there might be opportunity to increase that in time. But for now, that's what we're comfortable in saying.
Great. Thanks, Matthew. Just a quick question around STACK and potentially being up for sale. Does a change in ownership affect SKS at all, or is the data center operator removed from the head contractor's decision?
Yeah. No, so we don't. So we actually saw that with AirTrunk a couple of years ago when AirTrunk sold. That actually didn't affect us at all. Actually, if anything, it accelerated what their plans and growth strategic direction look like. So no, I don't see that as halting in what they're doing. I don't think businesses buy other businesses and then stop what they're doing. I think they will take that on and maybe even accelerate what they're doing. And yeah, they certainly have quite a number of years of activity in their pipeline, so I'm not concerned about that.
I've just got a question, James Filius at Morgans. James, please go ahead.
Hey, guys. Thanks for that. Can you hear me?
Yes. Thanks, James.
Yep.
Well, congratulations on a fantastic result. I guess just one question from me to start off with. Obviously, you've seen quite a market step up in your pipeline, even just from May. Can you sort of give us a feel for whether that sort of expansion of, I guess, projects that currently exist in your pipeline or whether it is new work being tendered and maybe just the composition. Is it still very much Victoria centric, or can we expect to see now that you are sort of integrated Delta Elcom, some more New South Wales based projects in the mix?
Yeah, sure. Thanks for the question, James. Yeah, so in May, we were talking AUD 1 billion on that pipeline and now obviously jumping up to AUD 1.5 billion. By and large, it is for existing customers that we have traditionally worked for. And it is either further growth in existing facilities or in one case, it is the next facility for that company. So by and large, in summary, it is for the customers that we have traditionally worked for. More work within existing planned facilities. And in one case, it is their next campus.
And very Victorian centric as well. Yeah.
Understood. And maybe just another one from me. Obviously, you've talked to Delta Elcom and the integration of that business. I think when you acquired it, you called out that they're about a AUD 25 million in revenue sort of run rate business. Now that you've integrated it in, we haven't yet sort of seen any material contract wins out of that New South Wales side of things yet. But how should we think about the ambitions for that business over the next few years and how that ties into your existing business, and I guess your presence in Victoria?
Yeah, sure. Well, I guess it's coming off a relatively low base, being a AUD 25 million business. So, when you talk about materiality, some of the projects that they may convert is material in the sense from what was Delta Elcom, maybe not so much the material for what is the group now.
It would typically do work up to AUD 5 million. We are now tendering opportunities that are north of that, more in that AUD 10 million- AUD 15 million sort of range. We're not working on any major facility in New South Wales using the Delta Elcom business that looks like the size of contracts that you see in Victoria. And we've widely spoken about that because we do feel it needs to be a stepped approach. So you will continue to see growth in that or we have an expectation to see growth in that business.
But it is going to be off the back of maybe contracts that are material to what was Delta Elcom, but maybe not material to the group at this point in time.
Understood. Thanks for that.
Yeah.
Yeah. That makes sense. Thanks, guys. Appreciate it. I will jump back in the queue.
Thank you, James.
Thanks, James. Next up, we have Warren Jeffries at Canaccord. Warren, please go ahead.
Thanks, Simon. Yeah, guys, just on that pipeline, though, just how quick do you think it converts into contracted work on the data center side?
Yeah. Thanks, Warren. There's a lot of variables that are outside of our control when it comes to timing of conversions. All of these projects are at different stages in terms of their life cycle.
Yeah.
We announced a little while ago, four weeks or so ago, around the AUD 28 million early works package for the next campus for a particular customer. That obviously, you would think, is going to happen a bit quicker than others, where they aren't turning dirt and digging holes at this point in time. I think when you look at the whole AUD 1.5 billion of pipeline, it's probably a different answer for each customer and each campus when you get in behind the detail. Then it's subject to those sorts of variables that might change a contract award.
We would like to think that probably over the next 6-12 months, we would have an answer on that pipeline. Then you're looking at a 2.5 to three- year build-out with some of the size of the facilities, just to talk quite high level, if that answers your question.
Yep, understand. Just with potentially in other geographies, such as South Australia or W.A., I guess given the amount of work going on there, or potentially going on there down the track, your existing relationships there and your footprint there, given there is some established footprint for you guys over there?
Yeah. South Australia is, for a long time, probably until the Delta acquisition, has been our second largest branch. We already have, we hover between 80- 100 resources in South Australia.
We are coming towards the end of a data center in Darwin, which has been facilitated between Melbourne, with its skill set, and the local workforce in Darwin. We could probably do something similar in South Australia should the right opportunity arise. Western Australia, we have been in Western Australia for over 10 years. It is a relatively small workforce. In the last couple of months, we have introduced a new general manager to that business to focus a little bit more on the Perth region, as opposed to some of the mining work that we have traditionally done over in Western Australia. We do have expectation and ambition to organically grow what we are doing in Perth particularly. As opportunities arise, then we will assess those opportunities. Certainly at this point in time, the big major projects, we are seeing the most activity in Victoria.
Which suits us, because Victoria, as you know, is hometown.
Yep. I guess Northern Territory just always will remain probably a smaller opportunity going forward?
Yeah. Look, the data center that we are doing up there, it is a sizable project for what is Darwin. It is not as big as what you see in Victoria and New South Wales, obviously, but it is definitely a big project for what is Darwin. Darwin does not see the amount of skilled resources that you see in Melbourne and Sydney, obviously. So, much larger projects up there come with larger challenges in terms of logistics and getting the right people with the right skill set to do different facets of the projects. I think if there is any sort of larger opportunity happening up in Darwin, we would need to be measured in how we go about potentially facilitating that, because it does need interstate support.
Good one. No worries, guys. Thanks for that.
Yep. Thanks, Warren Jeffries. Before we go to another analyst, we will just ask the question: There is talk in the U.S. of data center overbuild and overcapacity. Is there a danger of this occurring in Australia in the next couple of years? Are we prepared if there is a slowdown in data center work?
From what we see, I would answer that as no. By the time a data center operator is building a facility, it is generally because they have already signed contracts for the tenancy. Certainly the customers that we are working with, and look, there is a lot of people out there wanting to build data centers. There is your traditional data center operators and your hyperscalers that have been doing it for quite a number of years. But now you are starting to see property developers, you are starting to see companies that you have not heard of just pop up and wanting to build a data center. Maybe those companies are looking to build data centers with the philosophy of "build it and they will come." I am not sure. Our efforts are not focused there. Our efforts are focused on the customers that we have traditionally worked with.
Those customers traditionally sign contracts before they actually go and pull the trigger and build. With what is in our pipeline, you can comfortably see three to five years in terms of contracts that they have already signed, facilities and campuses that they have in planning to build. If we are on a project designing a project and it has got 2.5 to three years to run, it is because someone has already taken the tenancy. I would not put that in the class of overbuild at this point in time.
Thanks, Matthew. I have just got a question from Nick Maxwell at PAC Partners. Nick, please go ahead.
Thanks, guys. Thanks for taking the question, and well done again on the result. Just a first question, I guess an extension of that last one, just around, I guess, council pushback and anything on that side of things, are you seeing anything there? Anything like that type of thing?
No. No, Nick. No. I suppose by the time projects come to us, that has already been handled. By the time a data center operator, excuse me, has come to us and looking for us to get involved in a project from a design element, they have already got their HV connections, they have already got their planning and approval permits, and it is really this project is now a live project. The early works order that we announced four weeks or so ago, they had already done the demolition, they were already turning dirt, and the project is well underway. Whilst there is a lot of publicity around community backlash around power, water, what data centers need to do in terms of requirements around where they are getting their energy from and renewables, that conversation is really happening well before it gets to us.
Yeah, certainly from our point of view, we haven't had a data center operator come to us saying, "We're not doing this project anymore because the council hasn't given us approval." We just haven't seen that.
Okay. Perfect. Thanks, guys. On the, I guess, acquisition strategy you sort of spoke to, would you be looking at targeting, I guess, more traditional work away from data centers, or is there any sort of strategy, or is it just if something looks good, you might have a look at it?
Yeah, look, no, it's opportunistic. Again, we've sort of spoken to this before as well, whereby things come across our desk all the time. I had one yesterday, actually. It was in Southeast Queensland for a residential electrical contractor. Obviously, got zero appetite to do that. Those sorts of things come across our desk all the time. Sometimes it's a two-second email back. Sometimes we might fly somewhere and meet someone, where we don't have an acquisition strategy. We don't have a list of targets that we're pursuing. It's really more opportunistic, and if we feel that, there's a particular region or a particular sector that we might want to accelerate our efforts, then we'll have a close look at it, but we're not working on anything at the moment.
I'd just simply add to that, is we certainly wouldn't look to overpay for any acquisition.
Perfect. Thanks, guys. Much appreciated.
The Q&A segment, guys. I might just hand it back to you, Matthew, for closing remarks.
Great. All right. No more questions. Well, thank you, everyone. Really appreciate your time for jumping on this morning and joining Gary and I to run through our FY 2026 results. We are very pleased with our FY 2026 performance, and probably more importantly, we are really comfortable about where the business finds itself, the work in hand that we have running into FY 2027 and the opportunities that continue to be presented to us. We are certainly very buoyant about the future and looking forward to everyone being on the journey with us. So thank you for taking the time.
Thank you.