SGH books $1.55B underlying EBIT for FY26
- SGH achieved a 1% increase in underlying EBIT to $1.55 billion for FY26.
- The company declared a 64-cent per share dividend and an on-market buyback of up to $500 million.
- Management stated that a reduced 1.8 times leverage ratio provides balance sheet capacity for future growth opportunities.
SGH (ASX:SGH) reported a 1% underlying EBIT increase to $1.55 billion for FY26. Net profit for the period slipped to $920 million from $942 million a year earlier.
The result met company guidance, supported by margin expansion at Boral and WesTrac despite broadly flat $10.6 billion revenue.
WesTrac EBIT grew to $647 million from $639 million, while Boral EBIT climbed to $535 million from $468 million.
"The strong cash flow of our operating businesses supported reducing leverage to 1.8 times adjusted net debt to EBITDA," said SGH MD and CEO Ryan Stokes.
The company declared a dividend of 64 cents per share, up from a prior-year dividend of 62 cents per share.
The company stated that the $500 million buy-back will not constrain future investment capacity. SGH employed approximately 15,000 staff and contractors in FY26.
Following the announcement, the SGH share price was up at $46.34, as management projected long-duration market demand.
The capital management strategy lowered its adjusted net debt to EBITDA ratio to 1.8 times for the period.
