SGH Ltd (ASX:SGH) today announced its full-year results for the period ended 30 June 2026, delivering earnings growth and margin expansion in line with its guidance. SGH Ltd is an Australian diversified operating company, with market-leading businesses across industrial services, energy, and media. SGH owns WesTrac, Boral and Coates. The company reported underlying earnings before interest and tax (EBIT) of $1,554 million, a 1% increase on the prior year, with its EBIT margin expanding by 40 basis points to 14.7%.
The financial performance was driven by disciplined operational execution, particularly at its Boral and WesTrac divisions. Boral’s EBIT rose 14% to $535 million, with its EBIT margin improving by 113 basis points. WesTrac also saw EBIT increase by 1% to $647 million, benefiting from a 76 basis point expansion in its EBIT margin, despite a normalisation of capital sales. Overall revenue was broadly in line with the prior year at $10.6 billion. Underlying net profit after tax (NPAT) remained broadly flat at $920 million, while statutory NPAT surged 35% to $655 million.
SGH demonstrated strong cash generation, with operating cash flow increasing by 6% to $2.1 billion, representing 99% EBITDA cash conversion. This allowed the company to further strengthen its balance sheet, reducing its adjusted net debt to EBITDA ratio by 12% to 1.8x, below its target range. The Board declared a fully franked final dividend of 32 cents per share, bringing total full-year dividends to 64 cents per share, a 3% increase. Furthermore, SGH announced an on-market buy-back of up to $500 million, set to commence following the results announcement, leveraging its enhanced balance sheet capacity.
Managing Director and CEO Ryan Stokes highlighted FY26 as a year of disciplined delivery, noting the strong cash flow supported both dividend growth and deleveraging. Looking ahead, SGH anticipates flat to low single-digit EBIT growth in FY27. This outlook is underpinned by long-duration demand across its core end markets, including a substantial infrastructure and construction pipeline, alongside continued growth in mining production, and the rigorous application of its ‘SGH Way’ operating model.
