Dicker Data delivers record FY25 results, exceeding guidance across all key metrics
Dicker Data (ASX: DDR) has reported record Dicker Data FY25 Results, delivering gross revenue of $3.9 billion (up 14.9% on pcp) and net operating profit before tax of $124.7 million (up 10.1%). The results exceeded the guidance range provided in August 2025, which forecast gross revenue of $3.7-$3.8 billion and NPBT of $120-124 million. Earnings per share reached 47.4 cents, representing an 8.6% increase year-on-year.
The IT distributor services over 10,000 active Australian partners and 2,300 active New Zealand partners, with FY25 performance demonstrating operational momentum across all key segments. Recurring gross software sales grew 22.4% to $1.1 billion, whilst EBITDA increased 5.9% to $159.4 million.
Results reflect strong demand across software, endpoint solutions, and AI infrastructure, with the company’s ability to surpass its own forecasts signalling management credibility heading into FY26.
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What does an IT distributor actually do?
An IT distributor operates as an intermediary between global technology vendors and local reseller partners. Dicker Data aggregates products and services from major technology providers such as Dell, Microsoft, HP, Cisco, and hundreds of other vendors, then distributes these to Australian and New Zealand resellers who sell to end customers.
Distributors earn margin on hardware, software, and services that pass through their platform. This business model creates value through logistics, technical support, credit management, and partner enablement programmes that smaller resellers cannot access directly from vendors.
Scale matters significantly in this model. A larger partner network creates more cross-selling opportunities, whilst broader vendor relationships strengthen competitive positioning and reduce concentration risk. Dicker Data’s 10,000+ partner base in Australia provides substantial competitive moats that newer entrants struggle to replicate.
Software and endpoint solutions drive Australian growth
Australia delivers 17.2% gross revenue growth
Australia contributed $3.28 billion in gross revenue, representing 17.2% growth year-on-year. The software segment grew 21.0% to $1,166.3 million, whilst endpoint solutions increased 18.9% to $1,136.7 million. Endpoint growth was driven primarily by the Windows 10 refresh cycle, which accelerated device replacement across enterprise and mid-market customers at scale.
AI-specific deals contributed over $45 million in incremental new revenue during FY25. Gross margin compressed to 9.1% (from 9.9% in FY24) due to a shift in customer mix towards larger enterprise transactions, which typically carry lower percentage margins but deliver higher absolute profit. Australian profit before tax increased 8.2% to $114.0 million, benefiting from reduced interest costs despite maintaining average drawn debt balances.
| Segment | FY25 Revenue | Growth |
|---|---|---|
| Software | $1,166.3m | +21.0% |
| Endpoint Solutions | $1,136.7m | +18.9% |
| Advanced Solutions | $825.8m | +11.8% |
| Access & Surveillance | $137.2m | +16.0% |
Software’s 21% growth trajectory demonstrates that Dicker Data is capturing both cyclical demand (Windows refresh) and structural demand (cloud migration, subscription models) simultaneously. This positions the company to benefit from ongoing enterprise digital transformation regardless of economic cycle.
New Zealand delivers profit growth of 37%
New Zealand reported gross revenue of $581.2 million (up 3.6%), delivering modest top-line growth but exceptional profit conversion. Profit before tax surged 37.2% to $10.7 million, whilst net profit after tax grew 54.0% to $7.7 million. Gross margin held steady at 8.5%.
Cost discipline drove margin improvement, with lower salary and travel expenses contributing to operating leverage. The NZ result demonstrates that even modest revenue growth can translate into meaningful profit expansion when operational costs are tightly controlled.
AI positioning and strategic infrastructure investments
Dicker Data was selected as the distribution partner to build Australia’s first sovereign AI factory, AI-F1 in Melbourne, which delivered meaningful revenue contribution during FY25. The company has established an AI Proof of Concept facility in partnership with Dell Technologies and Equinix in Sydney, creating an environment where partners can test AI workloads before committing to full deployments. A Cisco AI Pod is expected online in H1 FY26.
The company is launching an AI Accelerate partner roadshow series across Australia in 2026, aimed at making AI solutions more accessible to local partners. Management acknowledged that global AI uptake is ahead of Australia and New Zealand, but positioned Dicker Data as the critical enabler for practical AI adoption across the region.
Company Strategy Statement
“The Company’s aim is to make AI solutions more accessible, supporting an acceleration of AI adoption across Australia and New Zealand.”
AI infrastructure distribution represents an emerging growth vector. Dicker Data’s role in sovereign AI infrastructure and PoC partnerships positions the distributor as a critical enabler as enterprise AI adoption accelerates across ANZ markets. This strategic positioning could drive material revenue growth as organisations move from AI experimentation to production deployment.
New vendor wins and strategic expansion
Dicker Data secured appointments as distributor for cybersecurity leader CrowdStrike and AI data management vendor VAST during FY25. These additions signal the company’s ability to attract high-growth, enterprise-grade vendors to its platform.
Other notable vendor additions in FY25 included:
- Arctera
- BlackBerry
- BMC
- Commvault (expansion)
- Epson
- Insta360
- Omnissa
- Optus
- Progress
- Shure
- Ubiquiti
- Urbansta
The company received extensive industry recognition, securing multiple Distributor of the Year awards across major vendors including Dell, Microsoft, HP, NetApp, Logitech, and NVIDIA. This vendor breadth creates cross-selling opportunities and reduces concentration risk across the business model.
Dicker Data outlined an ASEAN expansion strategy based on an organic, marketplace-led entry model that leverages existing platform capabilities. The company aims to enter new markets with high functionality and lower cost compared to traditional distribution models, though no confirmed timeline has been announced.
Capital management and dividend policy update
A final dividend of 11.5 cents per share was declared in respect of FY25. Full-year dividends paid totalled 44.0 cents per share (down from 48.0 cents in FY24), representing a 9.0% decrease year-on-year.
Dicker Data revised its dividend policy, establishing a formalised payout framework of 80-100% of NPAT, subject to cash and capital requirements. The company retained its quarterly dividend structure and introduced a 1.0% discount for shareholders participating in the Dividend Reinvestment Plan (DRP).
Net debt decreased $12.8 million to $293.0 million despite total debt increasing $7.8 million. The debt-to-equity ratio stood at 1.40x, whilst the debt service cover ratio improved to 7.35x (from 6.11x in FY24), reflecting stronger cash generation relative to borrowing costs.
Formalising the payout policy provides clarity for income-focused investors, whilst the DRP discount encourages reinvestment to support capital for growth initiatives including AI infrastructure partnerships and ASEAN expansion.
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FY26 outlook supported by favourable industry tailwinds
Dicker Data’s strategic positioning aligns with forecast growth across key IT spending categories in Australia and New Zealand. According to Gartner, Australian IT spending is expected to reach $172.3 billion in 2026, representing 8.9% year-on-year growth. The data centre systems segment is forecast to grow 22.5%, directly relevant to Dicker Data’s advanced solutions and AI infrastructure focus.
New Zealand IT spending is expected to reach $25.6 billion in 2026 (up 10.4% year-on-year), providing continued growth opportunities across the Tasman. Inventory levels at year-end position the company well amid emerging price volatility and global market uncertainties.
Key market drivers supporting FY26 outlook include:
- Australian IT spending 2026: $172.3 billion (+8.9%)
- Data centre systems growth: +22.5%
- NZ IT spending 2026: $25.6 billion (+10.4%)
The Windows 10 refresh cycle continues as a demand driver for endpoint solutions, whilst data centre modernisation and cybersecurity demand are expected to persist. Dicker Data’s strategic focus areas align directly with the highest-growth segments of the ANZ IT market, positioning the distributor to capture disproportionate value as enterprise technology spending accelerates.
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