Symal Group has delivered the Symal Group 1H FY26 Results, reporting normalised revenue of $504.2 million, up 20.7% on the prior corresponding period. The diversified services provider also announced five strategic acquisitions since listing, demonstrating execution on its high-growth strategy in its second year as a listed entity (ASX: SYL).
Symal posts record revenue as acquisition strategy gains traction
The Symal Group 1H FY26 Results for the period ended 31 December 2025 confirm strong momentum across the industrials contractor’s operations. Normalised EBITDA reached $51.4 million, up 5.5% on 1H FY25, while normalised NPAT came in at $19.9 million, representing growth of 1.1% year-on-year.
Normalised NPAT-A, which excludes non-cash amortisation on acquired intangible assets, totalled $20.9 million, up 3.9% on the prior period. The results reflect continued project performance and strategic overhead investments to support future growth.
Joe Bartolo, Founder and Group Managing Director
“It’s been an energising start to our second year as a listed company. Since listing we have announced five strategic acquisitions and built a robust work-in-hand and ECI pipeline, reflecting the strength of our diversified model and disciplined growth strategy. We enter the second half with momentum – a stronger balance sheet, a deeper pipeline and a more diversified platform than at any point in our history.”
The company deployed $36 million on acquisitions during the half, completing the purchases of Locale Civil and McFadyen Group. Three further acquisitions—Timms Group, L&D Contracting, and Davison Earthmovers—have been announced and await completion.
Despite the capital allocation to acquisitions and a $13.8 million dividend payment, Symal maintained a net cash position of $6.1 million as at 31 December 2025. Normalised cash conversion for the period reached 108%, demonstrating strong operational cash generation.
The double-digit revenue growth while maintaining profitability demonstrates a scalable business model capable of funding expansion through organic cash flow and strategic M&A activity.
Key financial metrics at a glance
The financial performance across normalised metrics shows consistent growth in revenue and earnings, with margins remaining within the company’s stated target range of 10-12%.
| Metric | 1H FY26 | 1H FY25 | Change |
|---|---|---|---|
| Normalised Revenue | $504.2M | $417.7M | +20.7% |
| Normalised EBITDA | $51.4M | $48.7M | +5.5% |
| EBITDA Margin | 10.2% | 11.7% | -1.5pp |
| Normalised NPAT | $19.9M | $19.7M | +1.1% |
| Normalised NPAT-A | $20.9M | $20.1M | +3.9% |
The 10.2% EBITDA margin reflects ongoing investment in capability and geographic expansion, particularly into northern states, while remaining well within management’s stated comfort zone.
Understanding normalised earnings and why they matter
Symal reports “normalised” results that exclude one-off items including M&A transaction costs, IPO-related impacts, pre-acquisition Sycle earnings, and adjustments for a historical commercial claim that affected 1H FY25 comparatives. This methodology strips out non-recurring items to provide a cleaner view of underlying operational performance.
The distinction between NPAT and NPAT-A is particularly relevant for investors tracking acquisition-driven growth. NPAT-A excludes the non-cash amortisation of acquired intangible assets, providing insight into cash-generative earnings capacity.
With five acquisitions either completed or announced since listing, understanding normalised versus statutory results becomes essential for comparing performance across periods without distortion from M&A activity. The normalised framework allows investors to assess organic operational trends and evaluate management’s execution against growth targets on a like-for-like basis.
For a company pursuing an active acquisition strategy, normalised metrics help investors separate value creation from one-off transaction noise and track whether integrated businesses are delivering anticipated returns.
Acquisition pipeline builds scale across diversified end markets
Symal’s acquisition activity accelerated materially during 1H FY26, with the company completing two transactions and announcing three further strategic purchases. The completed acquisitions—Locale Civil and McFadyen Group—contributed to the half’s results, while the pending transactions represent incremental earnings upside excluded from current guidance.
Total consideration paid for acquisitions during the half reached $36 million, funded through existing cash resources and working capital management. The pending acquisitions are:
- Locale Civil – Completed
- McFadyen Group – Completed
- Timms Group – Announced, pending completion
- L&D Contracting – Announced, pending completion
- Davison Earthmovers – Announced, pending completion
The company maintained a net cash position of $6.1 million as at 31 December 2025 after funding both the acquisition program and a $13.8 million dividend payment. Strong cash conversion of 108% demonstrates the business generates sufficient operating cash flow to support continued M&A activity without requiring external funding.
Management has emphasised disciplined integration as a key priority, ensuring acquired businesses are absorbed into the Symal platform without disrupting operational performance or culture. This approach balances growth ambitions with execution risk management.
The strong cash conversion supports continued M&A funding capacity without diluting shareholders or stretching the balance sheet. Pending acquisitions represent potential upside to FY26 guidance once completion timing is confirmed.
Work-in-hand supports revenue visibility
Symal reported estimated work-in-hand (WIH) of $1.64 billion as at 31 December 2025, representing the aggregate value of contracted projects yet to be completed. This metric provides multi-year revenue visibility and reduces execution risk on forward guidance.
The company continued to replenish its tendered pipeline throughout the half, securing new contract wins that offset projects transitioning from WIH to revenue. Management also highlighted a robust Early Contractor Involvement (ECI) pipeline, which represents pre-contract engagement opportunities that may convert to formal work-in-hand over coming periods.
Strong WIH provides a buffer against revenue volatility and demonstrates the company’s ability to secure work across its diversified end markets, including infrastructure, data centres, utilities, defence, and renewables.
Segment performance shows contracting services driving growth
Symal operates through two primary divisions: Contracting Services and Plant & Equipment. Performance diverged materially between the segments during 1H FY26, with Contracting Services delivering strong revenue growth while Plant & Equipment faced margin compression from timing factors and investment spend.
Contracting Services reported normalised revenue of $419.3 million, up 26.5% on the prior period, driven by wins on major projects including the company’s expanding data centre and infrastructure portfolio. Normalised EBITDA increased 8.4% to $26.9 million, representing an EBITDA margin of 6.4%.
The margin compression in Contracting Services reflects a deliberate shift in project mix toward larger, relatively lower-margin contracts and continued investment in establishing operations in northern states. Management noted these investments position the business for future growth and margin recovery as scale builds in new geographies.
Plant and Equipment delivered normalised revenue of $87.3 million, up 5.0% on 1H FY25. However, normalised EBITDA declined 7.1% to $21.3 million, while normalised EBIT fell 36.2% to $8.6 million. Management attributed the earnings decline to a strong comparative period in 1H FY25, where several projects delivered above-target margin outcomes, combined with continued investment in people, plant, and equipment ahead of anticipated growth.
Importantly, management confirmed EBIT margins in Plant & Equipment remain consistent with the 2H FY25 run rate, indicating the decline reflects timing rather than structural deterioration. The division’s performance demonstrates the trade-off between near-term margin compression and positioning for future capacity expansion.
Contracting Services growth was underpinned by the company’s diversified exposure to data centres and infrastructure, two resilient end markets with strong multi-year pipelines. Plant & Equipment margin dynamics reflect investment phasing rather than operational challenges.
Safety record reinforces operational discipline
Symal maintained strong safety metrics during 1H FY26, recording a Total Recordable Injury Frequency Rate (TRIFR) of 1.76 and a Lost Time Injury Frequency Rate (LTIFR) of 0.35 as at 31 December 2025.
The company’s safety culture serves as a foundation for operational discipline and project delivery quality. Strong safety performance is increasingly a prerequisite for securing major contracts, particularly in regulated industries such as defence, utilities, and critical infrastructure.
FY26 guidance reaffirmed with acquisition upside excluded
Symal has reaffirmed full-year normalised EBITDA guidance of $117 million to $127 million for FY26. This guidance explicitly excludes any earnings contribution from the three pending acquisitions—Timms Group, L&D Contracting, and Davison Earthmovers—due to uncertainty around completion timing.
The guidance reaffirmation provides confidence in the company’s ability to deliver on organic execution, notwithstanding the incremental complexity of integrating completed acquisitions and managing an expanded operational footprint.
In line with its stated dividend policy, the Board declared a fully franked interim dividend of 3.3 cents per share, with a record date of 6 March 2026 and payment date of 2 April 2026. The dividend demonstrates capital management discipline while retaining sufficient balance sheet capacity to fund the acquisition pipeline and working capital requirements.
FY26 Normalised EBITDA Guidance: $117 million to $127 million (excludes pending acquisitions)
The pending acquisitions represent incremental earnings upside not captured in current guidance. Once completion occurs and integration progresses, management may provide updated earnings expectations that incorporate the full-year contribution from these businesses.
Guidance reaffirmation provides confidence in organic execution, while pending acquisitions represent upside optionality not reflected in current expectations. Dividend policy continuity demonstrates disciplined capital management alongside growth investment.
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