Southern Cross Electrical Engineering (SCEE) – 2025 Interim Results Summary
Website: scee.com.au
Overview
Southern Cross Electrical Engineering (ASX: SXE) delivered a record first-half performance, with revenue up 55.5% and net profit after tax (NPAT) up 67.8%. The company continues to benefit from its diversified operations across infrastructure, commercial, and resources sectors, with strong momentum in data centres, electrification projects, and hospital developments.
Financial Performance (Per Share Basis Where Applicable)
| Metric | H1 FY25 | H1 FY24 | % Change |
|---|---|---|---|
| Revenue ($’000) | 397,400 | 255,500 | +55.5% |
| EBITDA ($’000) | 27,100 | 17,100 | +58.5% |
| Operating Cash Flow ($’000) | 114,800 | 84,100 | +36.5% |
| Earnings Before Tax ($’000) | 23,300 | 13,900 | +67.6% |
| Normalised EPS (cents) | Not provided | Not provided | – |
| Interim Dividend (cents per share) | 2.5 | 1.0 | +150% |
Key Highlights and Concerns
- Record revenue of $397.4M, driven by strong performance in infrastructure (63.3% of revenue).
- Significant projects include Collie Battery Energy Storage System, Western Sydney International Airport, and major data centres.
- Cash reserves at a record $114.8M, reinforcing a strong balance sheet with no debt.
- Gross margin declined to 12.7% from 14.7%, impacted by legal costs related to WestConnex arbitration and a lower-margin project mix.
- Strong order book of $670M, up 21.8% YoY.
Outlook Commentary
- Electrification opportunities expanding, including battery storage, renewable energy, and energy-efficient infrastructure.
- Strong data centre pipeline, with over $500M in tenders expected over the next two years.
- Hospital sector growth, highlighted by the $60M Shellharbour Hospital contract.
- Reiterated FY25 EBITDA guidance of at least $53M, with potential upside.
Guidance Statements
- Fully franked interim dividend of 2.5 cents per share, up 150% YoY.
- Management remains focused on acquisitions to enhance geographic reach and service offerings.
- No debt, strong cash reserves, and increased bonding capacity support future expansion.
Result vs. Market Expectations
- Results exceeded market expectations, with revenue and profit growth surpassing prior guidance.
- The dividend increase signals confidence in cash flow stability and earnings visibility.
- Investors will monitor gross margin improvements and resolution of the WestConnex arbitration.
Market Positioning
- SCEE’s share price heading into the report was strong, reflecting positive investor sentiment.
- The company remains well-positioned in the infrastructure, data centre, and electrification sectors, which continue to experience long-term tailwinds.
- Continued execution on its growth strategy through acquisitions and organic expansion could drive further share price upside.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Quick Take: H1FY25 ASX:SXE