Acrow Ltd Posts Record FY26 Revenue as FY27 EBITDA Guidance Rises

Acrow posts record $336m revenue as Industrial Access drives growth and FY27 outlook upgrade

In its FY26 full-year results presentation dated 24 August 2026, Acrow Ltd detailed a record top line, with revenue up 27% to $336.0m, driven by its Industrial Access division surpassing $200m (up 53%, now more than 60% of group revenue).

Management balanced the growth story with a softer earnings picture. Underlying EBITDA held flat at $80.3m, while underlying NPAT declined 20% to $27.6m, weighed down by a temporary Queensland construction slowdown, higher depreciation and increased interest costs.

The forward-looking hook was clear: Acrow upgraded its FY27 guidance and introduced first-half FY27 guidance, signalling management’s confidence in a stronger year ahead.

FY26 results: record revenue meets a temporary profit reset

The full-year scorecard showed a clear divergence between record revenue and softer profitability. Group EBITDA remained flat as first-half Queensland weakness was offset by the growing Industrial Access contribution.

Lower NPAT, EPS and dividends reflected higher depreciation, driven by average property, plant and equipment of $226.0m (versus $188.7m), and increased interest on higher average debt of $144.7m (versus $95.0m).

Management declared a final dividend of 1.42 cps, bringing the full-year DPS to 3.42 cps (100% franked).

Industrial Access becomes the growth engine

The strategic story of the year was the Industrial Access division. Revenue reached $200.9m (up 53%), with EBITDA of $36.9m (up 19%). The division now represents more than 60% of group revenue, built from a standing start in 2019.

Management addressed margin context openly. Gross profit margin sat at 33% (down from 37%), a decline attributed to lower-margin contributions from the Brand Australia business and the top five national labour contracts, which accounted for 43% of divisional revenue in FY26 versus 31% in FY25.

The presentation detailed several flagship live projects:

• Perdaman Urea Plant, Karratha WA: $42m contract, approximately 65% complete, $28.0m FY26 revenue

• BMA Bowen Basin & Hay Point: $18.7m FY26 revenue

• Snowy Hydro 2.0: $60m contract, approximately 50% complete, $15.8m FY26 revenue

• Ampol/Kent refinery works: $15m contract, approximately 80% complete

• Sydney Harbour Bridge: current works totalling approximately $11.4m, 60% complete

Understanding recurring revenue in industrial access

Industrial access refers to the scaffolding and access systems that enable work on complex sites such as mines, energy facilities, ports and refineries. Unlike one-off construction hire tied to a single build, much of this work is recurring, generated by routine maintenance and scheduled shutdowns that clients must repeat year after year.

For investors, this distinction matters. Recurring, blue-chip-backed revenue can smooth earnings volatility and reduce reliance on cyclical construction activity.

Acrow flagged approximately $180m of secured Industrial Access revenue for FY27, with total divisional revenue forecast at approximately $280m. This repeatable base underpins a growing share of group earnings and supports the broader diversification thesis management outlined across the presentation.

Construction recovery underway despite Queensland drag

The root cause of the softer profit result sat within Construction Services. Divisional revenue was broadly flat at $135.2m, with EBITDA down 8% to $56.6m, driven by first-half Queensland softness.

Management pointed to clear recovery signals. Second-half FY26 formwork revenue reached record levels, up 26% half-on-half, with NSW, SA and WA operating at record levels and Queensland showing significant second-half uplift.

Jumpform and Screens activity also reached record levels, with 28 Jumpform projects and 104 Screens projects in progress nationally. The Meriton Cypress deployment of the Column Climber, described by management as a “game changing system,” was reported to be performing to plan.

Standout secondary data points included:

1. Jumpform pipeline of $97.8m

2. Record second-half national formwork revenue, up 26% half-on-half

3. Successful Column Climber deployment at the Meriton Cypress project

Two acquisitions expand the platform post year-end

Both acquisitions settled or were settling after 30 June 2026 and were presented as post-period events.

SuperDeck® (Preston), described as the market leader for retractable loading platforms in Australia with 70%+ market share and approximately 900 decks, is expected to generate $11.0m revenue and $6.3m EBITDA in FY26. Settlement occurred in early July 2026.

Ausgroup Industrial Services (AGIS), a Queensland-based integrated industrial services provider serving blue-chip clients including Anglo American, Glencore, BHP and BMA, is expected to generate $40.0m revenue and $6.5m EBITDA in FY26. The acquisition was cleared by the ACCC on 11 August 2026, with settlement anticipated around 31 August 2026.

ACCC clearance for the AGIS acquisition was granted on 11 August 2026 under the mandatory notification rules introduced at the start of 2026, with no Phase 2 review required, removing the key regulatory condition precedent that had kept the deal contingent in the weeks prior to the FY26 results presentation.

Synergies for each business are expected to be circa $1.25m over the next 12 months, with AGIS providing an annualised uplift of $1.75m. The presentation referenced a combined FY26 EBITDA contribution of $13.0m in the proforma figures.

Balance sheet and capital allocation

FY26 was framed as a deliberate growth-investment year. Net debt rose $9.8m to $133.0m, with gearing metrics reflecting the increased capital deployment.

• Net debt/EBITDA of 1.9x (from 1.8x)

• Cash of $31.1m

• Debt headroom of $38.9m

• Proforma net debt/EBITDA of 1.6x after Tranche 2 and SPP proceeds ($51.2m) less acquisition costs ($47.8m)

Growth capex totalled $31.1m, directed primarily towards Jumpform ($18.9m) and Screens ($7.9m), alongside $5.4m of stay-in-business capex. The $31.3m net capital-raise proceeds largely funded the settlement of Preston’s in early July 2026.

A notable positive was cash conversion of 72%, with operating cash flow of $57.7m during the year.

Guidance upgrade signals a stronger FY27

The lead-forward hook was management’s decision to upgrade FY27 guidance, lifting revenue and EBITDA expectations by 2% and 4% respectively on prior guidance, while also introducing first-half FY27 guidance.

The initial FY27 targets set in April 2026 called for $335-350 million revenue and $88-98 million EBITDA, figures that now sit well below the upgraded August guidance of $410-430 million revenue and $105-115 million EBITDA, with the gap reflecting the incremental earnings from both acquisitions and the stronger-than-anticipated forward order book.

Acrow has upgraded FY27 guidance for revenue and EBITDA by 2% and 4%, respectively, and has also provided 1H FY27 guidance based on early FY27 performance, the strength of the forward order book and the expected contributions of the two recently completed acquisitions.

The forward pipeline supports the upgraded outlook. Management highlighted several catalysts:

• Hire equipment pipeline up 33% to $290m

• Sydney Harbour Bridge future packages of approximately $400m–$600m to be awarded ahead of the 2032 Centenary

• Brisbane 2032 venue development pipeline across multiple key venues

• A Queensland infrastructure boom extending to 2030

• FY27 capex budget of approximately $30.0m

The presentation positioned FY26 as a transitional year. A strategic pivot toward recurring, diversified industrial revenue, combined with a large secured and forward pipeline, positions Acrow for a potential rebound in FY27, with the profit dip framed by management as temporary rather than structural.

Don’t Miss the Next ASX Industrials Breakout

Big News Blast delivers FREE breaking ASX industrials news directly to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ subscribers staying ahead of the market on every major announcement. Click the “Free Alerts” button to start receiving alerts the moment news breaks.