Korvest Ltd (ASX: KOR) has released its preliminary final report for the financial year ended 30 June 2026 (FY26), revealing an uptick in revenue alongside a dip in net profit. The company, specialising in hot dip galvanising, sheet metal fabrication, and cable and pipe support systems, saw revenue from ordinary activities increase by 8.3% to $129.54 million. Concurrently, profit after tax attributable to members declined by 5.7% to $12.412 million, resulting in a 6.3% decrease in earnings per share to 104.9 cents. The board has proposed a fully franked final dividend of 40.0 cents per share, maintaining last year’s ordinary dividend, with a 25.0 cents interim dividend already distributed.
The growth in FY26 revenue stemmed from robust activity in the day-to-day and small projects markets, bolstered by data centre development. However, the company noted that this year did not benefit from the operating leverage that an accelerated major project supply had provided in FY25, impacting the comparative profit figures. Despite this, major project work in FY26 remained strong, slightly below FY25 levels, and Korvest is positioned for FY27 with record levels of work on hand and a positive outlook for the ongoing infrastructure sector.
Korvest committed to its largest-ever capital investment program during FY26. This included the early and on-budget completion of a new 3,500m2 factory at its Kilburn site in July 2026, with significant machinery commissioning scheduled for the first half of FY27 to boost capacity. The EzyStrut business enhanced its operational footprint by moving Queensland and Western Australian branches to larger facilities and expanding its NSW warehouse for the data centre market. The galvanising plant recorded a record processing volume, aided by a kettle replacement and burner management system upgrade. Furthermore, a $1.1 million settlement related to a third-party design fault, for which $566,000 in remediation costs were expensed in FY26, is anticipated in FY27.
