SCEE outlines record FY26 result and pathway to $100m EBITDA in FY27
In its FY26 full-year results presentation for the year ended 30 June 2026, Southern Cross Electrical Engineering (ASX:SXE) outlined a record annual result and set out a pathway toward at least $100m in Underlying EBITDA in FY27.
The diversified national provider of electrical, instrumentation, communications, security, fire and maintenance services reported Underlying EBITDA of $77.0m (FY25: $54.8m), up 40.5%, alongside a record order book of $810m, up 18.2%.
Established in 1978 and listed in 2007, SCEE operates a portfolio of businesses spanning multiple sectors and disciplines. Management anchored the growth narrative to structural tailwinds across data centres, infrastructure, electrification and energy.
The company also declared a record final dividend of 7.5 cents per share, fully franked, reinforcing the shareholder-returns component of its strategy.
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FY26 financial performance — record underlying earnings
SCEE’s FY26 result showed a clear divergence between underlying and statutory outcomes. Underlying NPAT reached $39.4m (FY25: $31.7m), up 24.3%, reflecting operating performance across the group.
Statutory NPAT, however, fell to $7.1m, down 77.6%. This decline was driven by a one-off WestConnex arbitration settlement cost of $46.1m, following an adverse Partial Final Award issued by the arbitrator in November 2025.
Revenue declined 10.3% to $718.7m as the Collie BESS and Western Sydney Airport Terminal projects completed in the first half. Despite the lower revenue, gross margin expanded strongly, and June 2026 was a record monthly revenue result for the group.
| Metric | FY26 ($m) | FY25 ($m) | Change |
|---|---|---|---|
| Revenue | 718.7 | 801.5 | -10.3% |
| Gross Profit | 136.7 | 105.9 | +29.1% |
| Gross Margin % | 19.0% | 13.2% | — |
| Underlying EBITDA | 77.0 | 54.8 | +40.5% |
| Underlying NPAT | 39.4 | 31.7 | +24.3% |
| Statutory NPAT | 7.1 | 31.7 | -77.6% |
The lift in gross margin from 13.2% to 19.0% was driven by the outcome at Collie BESS, the Force Fire contribution, and general project mix. This margin expansion points to improving earnings quality despite the lower headline revenue.
Balance sheet strength — record cash and debt-free
The presentation highlighted a fortified balance sheet positioned as the engine for the group’s growth strategy. Cash increased to a record $261.5m at 30 June 2026, up from $88.6m a year earlier.
The uplift was driven largely by a capital raise. SCEE completed a gross $150m institutional placement in June 2026, with shares issued at a 0.5% discount and costs of $5.3m, plus a further $15.0m Share Purchase Plan with proceeds to be received in July 2026. Net equity proceeds totalled $144.7m.
SCEE’s $165m capital raise in June 2026 was structured as a $150m institutional placement and a $15m Share Purchase Plan, with proceeds allocated to working capital and balance sheet flexibility ahead of the accelerating data centre pipeline.
Financing facilities were also renegotiated in June 2026. Bank guarantee and surety bond capacity increased from $150m to $220m, with a new $50m Revolving Credit Facility to fund working capital and a new $50m Acquisition Facility to fund future acquisitions.
Key balance sheet points included:
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Record cash $261.5m (30 June 2025: $88.6m)
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Debt free at 30 June 2026
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Franking account balance of $65.5m
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Headroom of $116.1m within the $220m combined facilities
Why this matters — the growth funding equation
The combination of the capital raise and the new acquisition facility positions SCEE to pursue its stated acquisition strategy without balance sheet stress. With cash and expanded facilities in place, management indicated finance is not anticipated to be a material constraint on capturing growth.
Understanding SCEE’s diversification and multi-disciplinary model
For a contractor, diversification across sectors, geographies and disciplines matters because it reduces reliance on any single project, region or capability. SCEE’s model spreads risk while opening more avenues for work.
The “multi-disciplinary offering” concept is straightforward. SCEE can bundle electrical, fire, security, communications and switchboard manufacturing into a single project, internally managing the interfaces between disciplines to de-risk schedule and cost. Management described this as providing value to clients “beyond the sum of its parts.”
In FY26, 60% of revenue was electrical services, with 40% drawn from adjacent disciplines. More than 75% of revenue came from the eastern states, reflecting the group’s East Coast weighting.
Recurring revenue is a growing feature of the earnings base. In FY26, 31% of revenue was recurring at $220m, up from just $45m in FY17. For investors, recurring revenue supports earnings stability across cycles.
This diversification has been built partly through acquisitions, including Datatel (2016), Heyday (2017), the Trivantage Group (2020), the MDE Group (2024) and Force Fire (2025).
Growth engines — data centres, infrastructure and electrification
Management outlined several structural tailwinds underpinning the growth outlook.
Data centres
SCEE worked inside ten different data centres owned by six different hyperscale cloud providers in FY26, providing electrical, communications and fire services. The group turned over $120m in data centre work during the year, which it is forecasting to triple in FY27.
The presentation noted Australian data centre capacity is expected to double from 1.6GW to 3.2GW by 2030, with potential to reach 4.7GW to 7.4GW by 2035. Management described an unprecedented pipeline of data centre projects, citing DigiCo and NEXTDC S4 works awarded.
Multi-sector contract wins across data centres, resources and government infrastructure during the year contributed to the order book build, with projects spanning three states and completions extending into mid-2028.
Infrastructure and renewables
Key infrastructure and renewables projects outlined included:
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Western Sydney Airport Stand Alone Facilities Project underway
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Shellharbour Hospital, described as Heyday’s largest ever hospital award
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Sydney Metro works at St Marys Station
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Collie BESS completed, representing over $250m of work and winning the NECA WA Industrial X-Large Award in August 2026
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Steel River East BESS awarded on the Ausgrid network
These tailwinds are tied to AI development, population growth and the drive to net zero, which management noted are forecast to have considerable longevity.
Outlook and investment case — guiding to at least 30% profit growth
SCEE is guiding to Underlying EBITDA of at least $100m in FY27, which would represent approximately 30% growth on the FY26 result. The guidance is supported by entering the period with a record order book.
The multi-year track record shows consistent compounding. Underlying EBITDA has grown at a 21.1% CAGR and earnings per share at a 21.5% CAGR since FY21:
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Underlying EBITDA CAGR of 21.1% (FY21 $29.6m to FY26 $77.0m)
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EPS CAGR of 21.5% (FY21 5.6cps to FY26 14.8cps)
Management also pointed to potential index-entry catalysts as near-term re-rating drivers:
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MSCI Australia Small Cap Index, anticipated August 2026
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ASX300 Index, expected September 2026
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ASX200 Index, targeted during FY27
On growth enablers, the company noted it is well funded following the raise, is an employer of choice with 250 apprentices supporting labour access, and captures inflationary impacts on materials and labour in its pricing rather than absorbing them.
The combination of a record order book, forward guidance and the potential for index inclusion sets out a clear forward catalyst pathway for the year ahead.
Director commentary
Management positioning
SCEE positioning for significant short, medium and long-term growth through exposure to structural tailwinds of data centres, infrastructure, energy and electrification.
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