SKS Technologies caps FY26 with record revenue and a $500M FY27 target
In its FY26 results presentation released on 18 August 2026, SKS Technologies Group detailed record annual sales revenue of $347.93M, up 33.0% on FY25’s $261.66M, alongside a 93.2% lift in net profit after tax (NPAT) to $27.11M.
Profit before tax (PBT) reached $39.35M, an 89.3% increase, as the electrical, communications and audio-visual (AV) contractor rode Australia’s data centre construction boom while holding margin discipline.
The standout forward signal came from management’s FY27 forecast of $500M revenue and $60M PBT. Revenue up a third, profit nearly doubled, and margins expanding together point to operating leverage emerging as the business scales.
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FY26 financial results show profit outpacing revenue
The core of the FY26 story lies in the gap between revenue growth and cost growth. Sales rose 33.0%, while total expenses increased just 28.2%, translating scale into margin expansion.
EBITDA climbed 80.8% to $42.43M, EBIT rose 86.0%, and the PBT margin lifted to 11.2% from 7.9% in FY25, reaching 12.3% in the second half. Earnings per share (EPS) of 23.45 cents represented a 91.2% increase.
The final result extended a guidance beat flagged in early August, when SKS announced an unaudited before-tax profit of $39.3 million against the $34 million target, with margins already tracking above the guided 10% level before the full audit was completed.
Employee benefits grew just 28.8%, against a 114.6% step-up in the prior financial year, reflecting less volatility in workforce management as the business continues to enjoy scale advantages.
Management noted the company’s fixed cost base is able to support up to $500 million in revenue, after which fixed overheads may require small incremental increases, without eroding margins, to support further growth.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Sales revenue | $347.93M | $261.66M | +33.0% |
| EBITDA | $42.43M | $23.47M | +80.8% |
| PBT | $39.35M | $20.79M | +89.3% |
| NPAT | $27.11M | $14.03M | +93.2% |
| EPS (cents) | 23.45 | 12.49 | +91.2% |
| PBT margin | 11.2% | 7.9% | +41.8% |
Data centre boom drives 47.6% revenue surge, but traditional business keeps growing
The presentation framed FY26 as a two-engine growth story. Data centre revenue reached $207.7M, representing 59.7% of total sales and up 47.6% on FY25’s $140.7M.
Traditional AV, communications and electrical revenue reached $140.3M, up 16.0%, and has grown at a 19.1% CAGR over three years. Management highlighted the continued focus on building diversified revenue, evident in the 40.3% of revenue generated by traditional projects.
Across both categories, the company reported a 95% repeat business rate, pointing to durable client relationships underpinning forward revenue.
The data centre segment’s scale-up was reflected across several operational metrics:
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FY26 pipeline: $1.48B (FY25: $358.5M)
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Largest contract: $210M (FY25: $90M)
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MW delivered: ~107MW (FY25: ~70MW)
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Work on hand: $245M
Why the data centre tailwind matters
SKS supplies critical electrical systems, high-voltage (HV) and medium-voltage (MV) works, communications and AV infrastructure into data centre builds.
Management cited industry data illustrating the scale of demand. Combined hyperscaler capital expenditure is estimated at approximately US$725B in CY2026, up 77% year-on-year. The Australian data centre market is forecast to reach A$16.75B by 2035 from A$3.2B, an 18% CAGR, with 1,853MW under construction nationally across 19 sites as at May 2026.
Within this structurally growing market, SKS lists blue-chip data centre clients including AirTrunk, Amazon, STACK Infrastructure, Microsoft and NEXTDC.
Order book and balance sheet underpin the growth runway
Forward visibility strengthened materially over the year. Work on hand stood at $312M at June 2026, up 56%, with data centres now representing 78.4% of the order book.
The MEL2 early works contract, secured in July 2026 with Built for high-voltage substation infrastructure at a Melbourne hyperscale site planned to exceed 354MW, was among the wins that pushed the FY27 starting order book to $312 million before the full-year results were published.
The open tender register comprised 1,356 tenders worth $1.69 billion, with data centres accounting for 87.0% of pipeline value as at August 2026.
The balance sheet provides the financial firepower to convert that pipeline. Cash on hand rose 52.7% to $49.60M, operating cash flow increased 30.5% to $45.66M, and the company reported no long-term debt following full repayment in FY22.
Bank facilities increased to $52M, a 62.5% rise and the sixth increase in four years, supporting the expansion strategy. The $10.88M cash component funding the Delta Elcom acquisition impacted second-half net cash flow; adding it back gives a positive 2H26 net cash flow position of $8.71M.
Shareholder value metrics reflected the earnings step-up:
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Full-year dividend 10.0 cents (up 66.7%, from 6.0 cents)
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Return on equity 78.7%
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Market cap $1.073B; total shareholder return 381.8%
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Share price $9.30 at 17 August 2026 (52-week range $2.51–$9.80)
Delta Elcom integration completed, expanding NSW footprint
Management presented the Delta Elcom acquisition as a completed strategic milestone. Delta Elcom is a Sydney-based specialist in data centre infrastructure and integrated electrical solutions, and SKS acquired 100% of the business and assets, integrating it as one brand, culture and operating platform across 9 sites.
The strategic rationale centres on geography. Sydney is Australia’s largest data centre market, while Melbourne is growing faster. Combined, the two hubs represent approximately 70–80% of Australia’s data centre market.
The acquisition gives SKS scale across the two dominant national data centre hubs, with a number of common existing clients operating projects in both NSW and Victoria.
Management’s FY27 outlook and growth strategy
Looking forward, management reiterated an FY27 forecast of $500M revenue and $60M PBT, framed as a stated forecast rather than a guarantee.
FY27 Forecast
Management outlined an FY27 forecast of $500 million in revenue and $60 million profit before tax, supported by a fixed cost base able to support up to $500 million in revenue.
The company set out three growth strategy pillars:
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Organic growth complemented by opportunistic acquisitions
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Efficient use of capital
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Revenue diversification
On operational scaling, the presentation detailed alignment with the Essential Eight (E8) cyber security framework, an established AI transformation and governance framework, a new integrated management system, and a company-wide leadership programme.
Safety credentials remained a highlighted point. The company reported zero lost-time injuries (LTIs) across 1,511,903 hours in FY26, and zero serious injuries across its 12-year-plus history, despite a 22.7% increase in headcount.
SKS Indigenous Technologies, brand and social value
SKS Indigenous Technologies, a 49% SKS-owned joint venture, recorded FY26 revenue of $28.6M and Indigenous employment spend of $6.0M. The venture is engaging 36 Indigenous electrical apprentices and 7 qualified electricians, with a 90% retention rate reported in the first half.
Management noted the venture opens access to government and defence procurement panels while supporting diversified traditional-sector revenue.
The FY26 results present a two-engine growth thesis: a structural data centre construction tailwind paired with a resilient, still-growing traditional business. Backed by a debt-free balance sheet, expanding margins and a $312M order book, SKS enters FY27 targeting the $500M revenue mark it has framed as within reach of its current cost base.
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