Full Year 2026 SRG Global Ltd Earnings Call

August 18, 2026

Speaker #1: Thank you for standing by, and welcome to the SRG Global Full Year Results Investor Briefing. All participants are in a listen-only mode. There will be a presentation, followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the SRG Global full year results investor briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, please enter it into the ask a question box and click submit. I would like to introduce today's presenters, Mr. David Macgeorge, Managing Director, and Mr. Roger Lee, CFO. I would now like to hand the conference over to Mr. David Macgeorge. Please go ahead.

Operator: Thank you for standing by, and welcome to the SRG Global Full Year Results Investor Briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you would like to ask a question, please enter it into the ask a question box and click submit. I would like to introduce today's presenters, Mr. David Macgeorge, Managing Director, and Mr. Roger Lee, CFO. I would now like to hand the conference over to Mr. David Macgeorge. Please go ahead.

Speaker #1: If you would like to ask a question, please enter it into the Ask a Question box and click Submit. I'd like to introduce today's presenters: Mr. David McGeorge, Managing Director; and Mr. Roger Lee, CFO.

Speaker #1: I'd now like to hand the conference over to Mr. David McGeorge. Please go ahead.

Speaker #2: Thanks, Darcy. First, I'd like to welcome everyone to the Full Year Results call for SRG Global for FY26. And look, before I start, I'd really like to acknowledge our people.

David Macgeorge: Thanks, Darcy. I would firstly like to welcome everyone to the full year results call for SRG Global for FY26. Look, before I start, I would really like to acknowledge our people. There will be many of you ringing in today, and I really want to acknowledge your efforts in delivering FY26. You continue to step up, you continue to live and breathe what we stand for, live for the challenge, smile together, never give up, and have each other's backs. These results today are a testament to your hard work over the last 12 months. So thank you. I always like to start with a little bit about us on slide 2, who we are, what we do, and what we are trying to be.

David Macgeorge: Thanks, Darcy. I would firstly like to welcome everyone to the full year results call for SRG Global for FY 2026. Look, before I start, I would really like to acknowledge our people. There will be many of you ringing in today, and I really want to acknowledge your efforts in delivering FY 2026. You continue to step up, you continue to live and breathe what we stand for, live for the challenge, smile together, never give up, and have each other's backs. These results today are a testament to your hard work over the last 12 months. So thank you. I always like to start with a little bit about us on slide two, who we are, what we do, and what we are trying to be.

Speaker #2: There will be many of you ringing in today, and I really want to acknowledge your efforts in delivering FY26. You continue to step up.

Speaker #2: You continue to live and breathe what we stand for: live for the challenge, be smart together, never give up, and have each other's backs. These results today are a testament to your hard work over the last 12 months.

Speaker #2: Thank you. I always like to start off with a little bit about us. On Slide 2: who we are, what we do, and what we're trying to be.

Speaker #2: And who we are—we're a diversified infrastructure services company. And the key word there is the diversified nature of what we do in the infrastructure space.

David Macgeorge: Who we are, we are a diversified infrastructure services company, and the key word there is the diversified nature of what we do in the infrastructure space. What we do is bring an engineering mindset to deliver critical services for major industry. When I talk about engineering mindset, what I am referring to is being smart, technical, innovative specialists in delivering water critical services for our clients. It is not about doing the laundry, the landscaping, the catering. It is about delivering critical services for our clients, which makes us critical for them. We do that across the entire asset life cycle of engineer, construct, and sustain. What we want to be, our vision, is the most sought after in what we do. Some might say number one, market leader.

Speaker #2: What we do is bring an engineering mindset to deliver critical services for major industries. I'm going to talk about engineering mindset. What I'm referring to is being smart, technical, innovative, specialist, and delivering critical services for our clients.

Speaker #2: It's not about doing the laundry, the landscaping, or the catering. It's about delivering critical services for our clients, which makes us critical for them. And we do that across the entire asset lifecycle of engineer, construct, and sustain.

Speaker #2: And what we want to be—our vision—is to be the most sought-after in what we do. Some might say number one, or market leader. For us, when our clients have a challenge, a problem, or an opportunity, I want the first people they think of, when they pick up the phone, to be SRG Global—and us making the complex simple for them.

David Macgeorge: For us, when our clients have a challenge, a problem, or an opportunity, I want the first people they think of when they pick up the phone is SRG Global and us making the complex simple for them. As we move to slide 3, you can see we have two key operating segments, Maintenance & Industrial Services, and Engineering & Construction. You can see the diversity of the sectors on which we play. The water, energy, resources, defense, transport, ports and marine, data centers, and health and education. So we are at a very diverse range of sectors, all with strong growth thematics in front of them. As I move to slide 4, you can see the profile that we have today. We are a very different business and more than 5,000 people across more than 20 industries.

Speaker #2: As we move to slide 3, you can see we have two key operating segments: Maintenance and Industrial Services, and Engineering and Construction. You can also see the diversity of the sectors in which we operate.

Speaker #2: Water, energy, resources, defense, transport, ports and marine, data centers, and health and education. So we're in a very diverse range of sectors, all with strong growth thematics in front of them.

Speaker #2: As we move to slide 4, you can see the profile that we have today. You are a very different business, with more than 5,000 people across more than 20 industries.

Speaker #2: Revenues are circa $1.7 billion and growing, with a market cap of roughly $2.5 billion. We're now an ASX 200 company. In terms of geographic split, we're pretty evenly divided between the East Coast and the West Coast of Australia, with about 5% in New Zealand.

David Macgeorge: Revenues are circa AUD 1.7 billion and growing at a market cap of roughly AUD 2.5 billion. We are now an ASX 200 company. You can kind of see the geographic split, pretty evenly split between the East Coast and the West Coast of Australia, with about 5% in New Zealand. That sort of geographic presence and footprint creates significant opportunity. We move to slide 5, which is the key slide of the whole deck. It is the executive summary of the results. What you are really seeing today is evidence. Evidence of us continuing to deliver and evidence of us doing everything that we said we would do. It is a record result. An EBITDA of AUD 170.1 million, which is up 34% on FY25. EBITA of AUD 131.8, up 41%. We have actually exceeded our upgraded guidance that we provided in June. It is an excellent result.

Speaker #2: But that sort of geographic presence and footprint creates significant opportunity. As we move to slide 5, which is the key slide of the whole deck, it's the executive summary of the results.

Speaker #2: And what you're really seeing today is evidence—evidence of us continuing to deliver, and evidence of us doing everything that we said we would do.

Speaker #2: It's a record result: EBITDA of $170.1 million, which is up 34% on FY25. EBITDA of $131.8 million, up 41%. And we've actually exceeded our upgraded guidance that we provided in June.

Speaker #2: It's an excellent result. It's a record result. And it translates into terrific returns for shareholders, with EPS of 13.8 cents per share, which is up 34% on FY25.

David Macgeorge: It is a record result, and it translates into terrific returns for shareholders with EPS of AUD 0.138 per share, which is up 34% on FY25. We increased the dividend in the H2 to AUD 0.04 fully franked, which is up 33% on the H2 of last year. I think that is something we have done really well over the journey, of really driving and funding the growth of the business, but also delivering good yield and dividends for shareholders. Another really strong cash generation year, continues our really strong track record over a long period of time. EBITDA to cash conversion of 101%, really high free cash flow of just under AUD 93 million. It really continues that strong trajectory of cash generation over a long, long period of time.

Speaker #2: We increased the dividend in the second half to 4 cents, fully franked, which is up 33% on the second half of last year. And I think that's something we've done really well over the journey—really driving and funding the growth of the business, but also delivering good yield and dividends for shareholders.

Speaker #2: Another really strong cash generation year. It continues our really strong track record over a long period of time. EBITDA to cash conversion of 101%, and really high free cash flow of just under $93 million.

Speaker #2: And it really continues that strong trajectory of cash generation over a long, long period of time. Really pleased that we're back in a net cash position of $6.2 million, which is from a net debt position post-TAMS of $52.5 million.

David Macgeorge: Really pleased that we are back in a net cash position of 6.2, which is from a net debt position post TAMS of 52.5. It really does position us well for the future to keep funding the growth of the business as we move into the future. We continue our really strong track record of M&A. Had TAMS, which was an acquisition we made during the last 12 months. It was a very strategic acquisition of a marine infrastructure services provider, very much that full self-performing end-to-end capability, and really pleased to report that they have delivered above business case of just over 10% in the first 8 months.

Speaker #2: And it really does position us well for the future to keep funding the growth of the business as we move into the future.

Speaker #2: We continue our really strong track record of M&A, and TAMS, which was an acquisition we made during the last 12 months. It's a very strategic acquisition of a marine infrastructure services provider, very much that full self-perform, end-to-end capability, and we're really pleased to report that they've delivered above business case, of just over 10% in the first eight months.

Speaker #2: And that really continues that strong inorganic delivery that we've delivered over the journey, which is overlaid to the strong organic growth of the group, where organically in the last 12 months, earnings have grown close to 70% at the EBITDA level and just under 14% at the EBIT level.

David Macgeorge: That really continues that strong inorganic delivery that we have delivered over the journey, which is overlaid with the strong organic growth of the group, where organically in the last 12 months, earnings have grown close to 17% at the EBITA level and just under 14% at the EBITDA level. I think for us, that really key evidence over a long period of time of growing strongly organically and overlaying that with good inorganic growth where it makes sense and makes us a better business. One thing we have done really well over the journey is winning and executing. It is something that I have been asked a lot over our journey as we have grown. Are we buying work? You can really see a really strong growth and track record of not only winning work but also delivering.

Speaker #2: So, I think for us, that's really key evidence, over a long period of time, of growing strongly organically and overlaying that with good inorganic growth, where it makes sense and makes us a better business.

Speaker #2: One thing we've done really well over the journey is winning and executing at something that I've been asked a lot about as we've grown.

Speaker #2: Are we buying work? You can really see the really strong growth and track record of not only winning work, but also delivering. We now have more than $5 billion work in hand, which is up 42% on this time twelve months ago.

David Macgeorge: We have now more than AUD 5 billion work in hand, which is up 42% on this time 12 months ago. That is over 80% plus of annuity recurring earnings. What that gives us is great platform, but also visibility into the future and with a pipeline of in excess of AUD 11 billion, which is a high-quality pipeline as well. I think one of the important messages out of today is we have delivered a record result. You have seen the evidence today of what we are doing, but we are not stopping here. Today, we are upgrading our FY27 guidance to AUD 195 million to AUD 205 million EBITDA and AUD 150 million to AUD 160 million EBIT, which is up from about AUD 190 million to AUD 200 million guidance that we gave in June of this year.

Speaker #2: That's sort of 80% plus of annuity recurring earnings. And what that gives us is a great platform, but also visibility into the future, and with a pipeline in excess of $11 billion—which is a high-quality pipeline as well.

Speaker #2: I think one of the important messages out of today is we've delivered a record result. You've seen the evidence today of what we're doing.

Speaker #2: But we're not stopping here. Today, we're upgrading our FY27 guidance to $195 to $205 million EBITDA and $150 to $160 million EBIT, which is up from about $190 to $200 million guidance that we gave in June of this year.

Speaker #2: What they really show us is the growth profile of the group, the confidence we have in our future, but also that forward visibility of what we see in front of us.

David Macgeorge: What that really shows is the growth profile of the group, the confidence we have in our future, but also that forward visibility at what we see in front of us. I think that is a really positive message out of today. An exceptionally strong result, but a very bright future in front of us about how we are going to grow, not only over the next 12 months, but over the next three to five years. Well, now to go into the financial details. I will move over to slide seven, which caps a bit of the financial detail of the group. Look, as you can see on slide seven, really strong on every line. Particularly pleased with the margin percentage performance. You are really seeing the benefits of us being a very capital light business and how top-line growth is translating into bottom-line earnings.

Speaker #2: So, I think that's a really, really positive message out of today—an exceptionally strong result, and a very, very bright future in front of us.

Speaker #2: About how we're going to grow, not only over the next 12 months, but over the next three to five years. We'll now delve a little bit more into the financial details.

Speaker #2: I'll move over to slide 7, which covers a bit of the financial detail of the group. Look, as you can see, really on slide 7, we're really strong on every line.

Speaker #2: Particularly pleased with the margin percentage performance, and you're really seeing the benefits of us being a very capital-light business, and how sort of top-line growth is translating into bottom-line earnings.

Speaker #2: Really pleased with EBITDA percentage margin, now above 10%, with, I think, some further incremental opportunities to improve from there. EBIT margins of just under 8%.

David Macgeorge: Really pleased with the EBITDA percentage margin now above 10%, with I think some further incremental opportunities to improve from there. EBIT margins of just under 8%, and you can see from a dividends per share perspective, up 27%, which continues our long track record of continuing to grow the dividend that we are providing to shareholders. EPS growth, as I touched on earlier, of 34%. So a really strong above-market performance. Transition back to net cash, which I touched on before. I think most importantly here, it is just the fundamentals of the group really provide that platform for sustainable growth as we move into the future. In some ways, I do not feel the numbers do justice to the quality of the business we have today. This is very much a quality result, quality earnings.

Speaker #2: And you can see from a dividends per share perspective, up 27%, which continues our long track record of growing the dividend that we provide to shareholders.

Speaker #2: EPS growth, as I touched on earlier, was 34%. So, a really strong above-market performance. We've also transitioned back to net cash, which I mentioned before.

Speaker #2: But I think, most importantly here, it's just the fundamentals of the group really provide that platform for sustainable growth as we move into the future.

Speaker #2: And in some ways, I don't feel the numbers do justice to the quality of the business we have today. This is very much a quality result.

Speaker #2: Quality earnings. But the quality of the business that we're delivering and the way we're servicing our clients is high quality, with blue-chip clients. And I really link that back to strategy.

David Macgeorge: The quality of the business that we are delivering and servicing our clients is high quality with blue-chip clients. I really link that back to strategy and us delivering and doing everything that we said we would do. We have had a very clear strategy for a long period of time, and today you are seeing further evidence of us delivering against that strategy. I think the most important message from here is, as we move to slide eight, it is not just another record year for the group. It continues a very strong and long-term track record of delivery. As you can see on slide eight, a very positive trend from a visual perspective. It is just not one year. If you look at profit, EPS, dividend, very positive trends. Slide eight is very much a visual view.

Speaker #2: And us delivering and doing everything that we said we would do. We've had a very clear strategy for a long period of time, and today you're seeing further evidence of us delivering against that strategy.

Speaker #2: I think the most important message from here is, as we move to slide 8, it's not just another record year for the group. It continues a very strong and long-term track record of delivery.

Speaker #2: As you can see on slide 8, there's a very positive trend from a visual perspective. It's not just one year. And if you look at profit, EPS, and dividend, there are very, very positive trends.

Speaker #2: Slide 8 is very much a visual. For those more numerically minded, as we move to slide 9—which is probably most of the people on this call—you can really see the track record and the quality of what we've delivered over a long period of time.

David Macgeorge: For those more numerically minded, as we move to slide 9, which is probably most of the people on this call, you can really see the track record and the quality of what we have delivered over a long period of time. There is not a metric that we have not absolutely delivered on over the last five to six years. Really, what you are seeing today is further evidence of the transformation of the company that we are today. EPS growth of circa 320% over the past five years, which is a terrific result for shareholders. A terrific shareholder return over that period as well. We have very much transitioned the business to that 80% annually occurring. It is probably a little bit higher than that now. You can see that clear evidence of us winning, but also executing well.

Speaker #2: And there is not a metric that we haven't absolutely delivered on over the last five to six years. And really, what you're seeing today is further evidence of the transformation of the company that we are today.

Speaker #2: EPS growth of approximately 320% over the past five years, which is a terrific result for shareholders, and a terrific shareholder return over that period as well.

Speaker #2: We've very much transitioned the business to that 80% annuity occurring—it's probably a little bit higher than that now. You can see clear evidence of us winning, but also executing well.

Speaker #2: And you can see the uplift in margin percentage performance over the long term has continued to improve, and the quality with it, along with a really strong track record of cash generation over the long term. Which, I think, cash can never look in halves or years.

David Macgeorge: You can see the uplift in margin percentage performance over the long term has continued to improve and the quality with it, along with a really strong track record of cash generation over the long term. I think cash you can ever look in halves or years, but you can see over a long, long period of time, we have delivered really strong cash backed profit. Again, I think slide 9 is just further evidence of us executing the strategy and doing everything that we said we would do. We go into a bit more of the financial detail on slide 10. You can really see that positive cash, which is really funding our growth. As I mentioned earlier, EBITDA cash conversion of 101%.

Speaker #2: But you can see, over a long, long period of time, we've delivered really strong cash-backed profit. So again, I think slide 9 is just further evidence of us executing the strategy.

Speaker #2: And doing everything that we said we would do. We're going into a bit more of the financial detail on slide 10. You can really see that positive cash, which is really funding our growth.

Speaker #2: As I mentioned earlier, EBITDA to cash conversion was 101%. I always say use 80% as a good proxy for us, as you're also balancing the growth of the company.

David Macgeorge: I always say use 80% as a good proxy for us as you are also bouncing the growth of the company, but a really strong track record of delivery. Again, another positive year from EBITDA cash conversion. Really high free cash flow, which I have touched on earlier, of just under AUD 39 million. Our CapEx at AUD 33 million, which is roughly 2% of revenue, which is very much our profile from a maintenance capital perspective. It is roughly 2% of revenues, so very much in line with historicals. You can really see that continued strong track record of cash generation, which really translates on slide 11 to the robust financial position that we have today. We have got an exceptionally strong balance sheet, available liquidity of nearly AUD 300 million back to net cash, which is really positive from our perspective.

Speaker #2: But a really strong track record of delivery and, again, another really positive year from an EBITDA to cash conversion perspective. Really high free cash flow, which I've touched on earlier, of just under $93 million.

Speaker #2: Capex at $33 million, which is roughly 2% of revenue, is very much our profile. From a maintenance capital perspective, it's roughly 2% of revenue.

Speaker #2: So very much in line with historicals, and you can really see that continued strong track record of cash generation, which really translates, on slide 11, to the robust financial position that we have today.

Speaker #2: We've got an exceptionally strong balance sheet, with available liquidity of nearly $300 million. We're back to net cash, which is really positive from our perspective. You can see we've got a lot of facilities available to keep funding the growth of the business moving forward.

David Macgeorge: You can see we have got a lot of facilities available to keep funding the growth of the business moving forward. With the balance sheet that we have today, it gives us enormous strength, but also a lot of flexibility to really drive the growth of the business, not only organically, but also inorganically into the future, which is certainly part of the strategy. I think that is the financial piece. As we move to slide 12, there are financials, but there is also the strong foundation of the group. I always say in business, it is not the best widget, it is not the smartest strategy that drives performance. It is people and it is culture, and it is us living and breathing what we stand for. Live for the challenge, smile together, never give up, and have each other's backs. That is what is driving our performance.

Speaker #2: And with the balance sheet that we have today, it gives us enormous strength but also a lot of flexibility to really drive the growth of the business, not only organically but also inorganically into the future, which is certainly part of the strategy.

Speaker #2: Now, I think that's the financial piece. But as we move to slide 12, there's the financials, but there's also the strong foundation of the group.

Speaker #2: And I always say, in business, it's not the best widget. It's not the smartest strategy that drives performance. It's people, and it's culture. And it's us living and breathing what we stand for.

Speaker #2: Live for the challenge. Smart together. Never give up. And have each other's backs. That's what's driving our performance. I always say to investors: that is what you're investing in.

David Macgeorge: I always say to investors, that is what you're investing in. You're investing in what we live and breathe and stand for as a business. In slide 13, we touch on some of the things around ESG, and for us, it's about being very pragmatic, being very real, and how we can make a difference. Certainly from an environmental perspective, we've established now a committee at executive level for sustainability, which is really to strengthen the governance and oversight from an environmental perspective. We're ISO 14001 certified, which really is the framework on which we govern the environmental management of the group. We've fully deployed carbon platform software to enable consistent auditable climate reporting. We really see climate change as not a risk for the group, but an absolute opportunity.

Speaker #2: You're investing in what we live and breathe and stand for as a business. In slide 13, we touch on some of the things around ESG.

Speaker #2: And for us, it's about being very pragmatic, being very real about how we can make a difference. And certainly, from an environmental perspective, we've now established a committee at executive level for sustainability, which is really to strengthen the governance and oversight from an environmental perspective.

Speaker #2: We're also 40,001 certified, which really is the framework on which we govern the environmental management of the group. We've fully deployed carbon platform software to enable consistent, auditable climate reporting.

Speaker #2: And we really see climate change as not a risk for the group, but an absolute opportunity. We've also had a lot of great things we're doing around materials, facilities, and smarter designs—around how we make our clients' business better.

David Macgeorge: There are also a lot of great things we're doing around materials, facilities, smarter designs, around how do we make our clients' business better. The reality is, SRG, we operate on our client's sites, and it's about us working with our clients to improve not only their business, but the sustainable way that they do it. From a social perspective, really proud of the work that's been done with the Bargharaba Aboriginal Joint Venture. It's progressing very, very strongly. Very well led by Angela Bennis and Jess and Gloria Wilson. We are building a special business there. I'm really proud of what's been done to date, and it's got a very exciting future in front of it. We've now launched our Innovate RAP, which is really moving from the what to more the pathways and the how as we move into the future.

Speaker #2: The reality is, at SRG, we operate on our clients' sites. It's about us working with our clients to improve not only their business, but also the sustainable way that they do it.

Speaker #2: And from a social perspective, I'm really proud of the work that's been done with the Bugriba Aboriginal Joint Venture. It's progressing very, very strongly. Very well led by Angela Bennett and Jess and Gloria Wilson.

Speaker #2: We are building a special business there. I'm really proud of what's been done today, and it's got a very exciting future in front of it.

Speaker #2: We've now launched our InnovateRap, which is really moving from the 'what' to more so the pathways and the 'how,' as we move into the future.

Speaker #2: We've increased our investment from a graduate perspective to now nearly 30 people, which is all around sort of preparing ourselves for future growth and the next level of talent coming through the group.

David Macgeorge: We've increased our investment, from a graduate perspective, to now nearly 30 people. It's all around preparing ourselves for the future growth and the next level of talent coming through the group. From a social perspective, it's about how we operate in the local community. The reality is we operate in a lot of remote regional communities. It's about how we're a good corporate citizen and being very much a part of that local community. From a governance perspective, we've got a zero harm committee operating at both board, executive, business unit, and site level, which really drives the safety performance. Our TRIFR improved to 1.77, and I think anything below 5 is a really good performance from a business. Below 2 is absolute industry leading. I always say safety is a glass ball in business.

Speaker #2: And from a social perspective, it's about how we operate in the local community. So the reality is, we operate in a lot of remote, regional communities.

Speaker #2: It's about how we're a good corporate citizen and very much a part of that local community. From a governance perspective, we've got a zero-harm committee operating at the board, executive, business unit, and site levels, which really drives our safety performance.

Speaker #2: Our tree improved to 1.77. I think anything below 5 is a really good performance from a business. Below 2 is absolutely industry-leading.

Speaker #2: And I always say safety is the glass ball in business. You juggle a lot of balls in business—they're all rubber except for safety.

David Macgeorge: You juggle a lot of balls in business. They're all rubber, but really safety is a glass one. It's the one that you can't afford to drop. I don't like to celebrate it because every day is a new day, but really pleased at the performance. For me, it's about focusing on the critical risks, about what really matters, and we've very much got a reporting culture about how we learn. As I've said at the start, every day is a new day. It is a glass ball, and we have to start at ground zero and focus afresh every single day. We put a lot of effort into the frontline leadership. We've had more than 350 leaders through our frontline leadership program from a safety perspective in the last 12 months.

Speaker #2: But reality—safety is a glass one. It’s the one that you can’t afford to drop. I don’t like to celebrate it, because every day is a new day.

Speaker #2: I'm really pleased with the performance. For me, it's about focusing on the critical risks and what really matters. We've developed a strong reporting culture around how we learn.

Speaker #2: As I've said at the start, every day is a new day. It is a glass ball, and we have to start at ground zero and focus afresh every single day.

Speaker #2: We look with a lot of effort into, sort of, the front-line leadership. We've had more than 350 leaders through our front-line leadership program from the safety perspective.

Speaker #2: In the last 12 months, I'm really proud of some of the work we're doing in the psychosocial space, which is not only an issue in business but also an issue in society.

David Macgeorge: Really proud of some of the work we are doing in the psychosocial space, which is not only an issue in business, but also an issue in society. From a group systems perspective as a whole, our Project Evolve is really well embedded from a rollout perspective. Very, very well led by Andrew Bell and the team. It is all around having one platform, standardized business systems to really provide that data and insight to give good decision making for our frontline leaders in real time. A lot of really good work we are doing in the ESG space, and I think what you are really seeing today is some really pragmatic, practical evidence of what we do in this space. We might switch gears a little bit now and move over a couple of lines to the operating segment update.

Speaker #2: And from a group systems perspective, as a whole, our project evolved. It's really well embedded from a rollout perspective now—very, very well led by Andrew Bell and the team.

Speaker #2: It's all about having one platform and standardized business systems to really provide that data and insight, enabling good decision-making for our front-line leaders in real time.

Speaker #2: So, a lot of really good work we're doing in the ESG space, and I think what you're really seeing today is some very pragmatic, practical evidence of what we do in that space.

Speaker #2: We might switch gears a little bit now and move over a couple of lines to the operating segment update. And I think you can see there really strong performance across both segments.

David Macgeorge: I think you can see there, really strong performance across both segments, and really underpinned by excellent operational execution with really consistent margins. Now, group level, I think I might have touched on this at the start, but really strong performance as a group. Organically, we sort of grew EBIT by close to 17%, organically in EBITDA, just under 14%. Then you overlay that with a contribution from TAMS from an 8-month period, which was circa 10% above business case. That is at group level. We look at sort of the Maintenance & Industrial Services segment, which is the largest part of the group. Again, continuing evidence of delivering step change growth with really consistent industry-leading margins. I touched on the sort of TAMS performance above business case and now fully integrated into the group, and I will talk about that a bit more later on in the presentation.

Speaker #2: And really underpinned by excellent operational execution with really consistent margins. Now, at the group level—I think I might have touched on this at the start—but really strong performance as a group.

Speaker #2: Organically, we sort of grew EBIT by close to 17% organically and EBITDA by just under 14%. Then you overlay that with the contribution from TAMS for an eight-month period, which was circa 10% above the business case.

Speaker #2: That's at a group level. If we look at the maintenance industrial services segment, which is the largest part of the group, again we see continuing evidence of delivering step-change growth with really consistent, industry-leading margins.

Speaker #2: I touched on the sort of TAMS performance above business case and now fully integrated into the group, and I'll talk to that a bit more later on in the presentation.

Speaker #2: From an engineering construction of this business, again, a really strong performance. Really, really excellent execution. And really underpinned by the early us—that upfront insight, visibility, input, and contribution to enable us to execute with certainty.

David Macgeorge: For an Engineering & Construction of this business, again, a really strong performance, really, really excellent execution, and really underpinned by the early contractor engagement model, which gives us that upfront insight, visibility, input, and contribution to enable us to execute with certainty. From a corporate perspective, very much aligned with historicals of low 2%. Now, we continue to invest in the things that matter to keep scaling the business to be able to deliver into the future, but run at a very, very prudent level where we value where we spend our money. We delve into each of the segments, firstly starting with Maintenance & Industrial Services on slide 16. You can see the diverse range of services on which we provide. I think if there is a couple of key takeaways on slide 16, it is the quality of the client base.

Speaker #2: From a corporate perspective, very much aligned with the strikes of low 2%. Now, we're continuing to invest in the things that matter to keep scaling the business, to be able to deliver into the future.

Speaker #2: But run at a very, very prudent level where we value where we spend our money. So, we delve into each of the segments—firstly, starting with Maintenance Industrial Services on slide 16.

Speaker #2: You can see the diverse range of services that we provide. And I think, if there's a couple of key takeaways, they're on slide 16.

Speaker #2: It's the quality of the client base. You can see a very, very blue-chip client base that we service. It's also the diversity of the sectors and industries in which we play.

David Macgeorge: You can see a very, very blue-chip client base on which we service. It is also the diversity of the sectors and the industries on which we play in. As we move to slide 17, the operating segment update for the year-end review. Again, excellent performance and that continued track record of step change growth. We have secured a number of long-term contracts in the last 12 months, which really does position us for the future. I won't call out each individual contract or client, but you can really see the quality of the client base that we are dealing with and value what we provide. Very, very well now spread out geographically across all of Australia and New Zealand. We are across a diverse range of sectors where we can apply our skills. The successful acquisition of TAMS integration, I will touch on that a bit more.

Speaker #2: As we move to slide 17, the operating segment update. For the year in review, again, excellent performance, and that continued track record of step-change growth.

Speaker #2: We've secured a number of long-term contracts in the last 12 months, which really does position us for the future. I won't call out each individual contract or client.

Speaker #2: But you can really see the quality of the client base that we're dealing with and the value we provide. Very, very well now, spread out geographically across all of Australia and New Zealand, across a diverse range of sectors where we can apply our skills.

Speaker #2: Now, the successful acquisition of TAMS and integration—I'll touch on that a bit more. And a lot of really strong growth opportunities as we move into the future.

David Macgeorge: A lot of really strong growth opportunities as we move into the future, particularly in water, transport, resources, ports and marine, and the energy space, which are all good, strong growth thematics for SRG Global. On slide 18, which is the Engineering & Construction segment, I think again, you can see the core services that we provide, and it is very much that sort of specialist model, early contractor engagement. Again, a couple of key takeaways is, again, the quality of clients that we have, both in public and private land, an absolute blue-chip client base. Most important message, these are all repeat clients. We do not call this recurring earnings, but the reality is all the clients we are dealing with are repeat clients where the commercial model is well-established. We are providing early contractor engagement and input, and they are valuing the services on which we provide.

Speaker #2: Particularly in water, transport, resources, ports and marina, and the energy space, which are all strong growth thematics for SRG Global. On slide 18, which is the Engineering Construction segment, I think, again, you can see the core services that we provide.

Speaker #2: And it's very much that sort of specialist model—early contractor engagement. Again, a couple of key takeaways are the quality of clients that we have, both in public and private land, and an absolute blue-chip client base.

Speaker #2: And most important message, these are all repeat clients. We don't call this recurring earnings, but the reality is, all the clients we're dealing with are repeat clients where the commercial model's well established.

Speaker #2: We're providing early contractor engagement and input, and they're valuing the services that we provide. So, if we move to slide 19, which is the year in review—again, really strong evidence of strong performance.

David Macgeorge: We move to slide 19, which is the year in review. Again, really strong evidence of strong performance and excellent execution. Really good evidence of execution and delivery in the specialist water infrastructure space, particularly in the dam anchoring, mega tank, and water infrastructure space across Australia. Really good evidence of winning and executing in transport, defense, and renewables, which are all good growth thematics. Our Specialist Façades business, an absolute market leader in the space across Australia and New Zealand, primarily playing in health, education, and data centers with key clients. All good, strong growth thematics, particularly in the health and data center areas. The most important piece, which I have really touched on already, is that robust commercial framework.

Speaker #2: And excellent execution. Really good evidence of execution and delivery in the specialist water infrastructure space, particularly in dam anchoring, mega tanks, and water infrastructure projects across Australia.

Speaker #2: Now, there's really good evidence of winning and executing in transport, defense, and renewables, which are all strong growth thematics. Now, a specialist facades business and the absolute market leader in the space across Australia and New Zealand.

Speaker #2: Primarily playing in health, education, and data centers with key clients—all good, strong growth thematics, particularly the health and data center areas. And the most important piece, which I've really touched on already, is that robust commercial framework.

Speaker #2: That early contractor engagement model with blue chip clients, commercial model well established, early engagement and input around designs, pricing, execution—and you can then lock in the work early and then execute with certainty—which is something that we highly value.

David Macgeorge: That early contractor engagement model with blue-chip clients, commercial model well-established, early engagement and input around designs, pricing, execution, and you can then lock in the work early and then execute with certainty, which is something that we highly value. Basically, all our work in this space is that early contractor engagement model. I will touch on now TAMS as we move a couple of slides to slide 21. It does feel like TAMS has been in the family for four or five years. The reality is it has only been since November. This was a very, very strategic acquisition of a market leader in the specialist marine infrastructure space. We completed it at the start of November. It is now fully integrated into the group from a business systems and process perspective.

Speaker #2: And basically, all our work in this space is that early contractor engagement model. I'll touch on TAMS now as we move a couple of slides forward to slide 21.

Speaker #2: It does feel like TAMS has been in the family for four or five years. The reality is, it's only been since November. This was a very, very strategic acquisition of a market leader in the specialist marine infrastructure space.

Speaker #2: We completed it at the start of November. It's now fully integrated into the group from a business systems and process perspective. I think, most pleasingly for me, it's exceeded the business case in the first eight months—about 11% above business case.

David Macgeorge: I think most pleasingly for me, it has exceeded business case, in the first 8 months, about 11% above business case. The most important piece for me, it has been an excellent start culturally. These things generally succeed or fail based on culture, and I spent all my first 12 months very much on the cultural integration of the group, exceptionally well led by Ade Faulkner and the team, and that cultural alignment is very, very strong. There are a lot of really positive opportunities, both in the near term but also the medium term, not just for TAMS as a standalone business, but as part of the broader group. It has been an excellent acquisition for us. I am really proud and pleased to have TAMS as part of the SRG Global family.

Speaker #2: But the most important piece for me—it's been an excellent start culturally. These things generally succeed or fail based on culture. And I spent all my first 12 months very much on the cultural integration of the group.

Speaker #2: It's exceptionally well led by Abe Faulkner and the team, and that cultural alignment is very, very strong. There are a lot of really positive opportunities, both in the near term and also in the medium term.

Speaker #2: Not just for TAMS as a standalone business, but as part of a broader group. It's been an excellent acquisition for us, and we're really proud and pleased to have TAMS as part of the SRG Global family.

Speaker #2: Which is a great segue into the way forward and the future as we move a couple of slides further to slide 23. As you can see, we've had a very, very clear strategy for a long period of time.

David Macgeorge: Which is a great segue into the way forward and the future as we move a couple of slides further to slide 23. You see, we have had a very, very clear strategy for a long period of time, and today you are seeing further evidence of us continuing to deliver and execute against that strategy. I almost feel boring putting up this slide. I think I have been putting up this slide now for more than 8 years, but it is probably one of the real strengths of us as a company. We have had a very, very clear strategy for a long period of time. We have been very, very disciplined and focused in delivering against that strategy. We are very clear on what we want to be, but also very clear on what we do not want to be.

Speaker #2: And today, you're seeing further evidence of us continuing to deliver and execute against that strategy. I almost feel boring putting up this slide—I think I've been putting up this slide now for more than eight years.

Speaker #2: But it's probably one of the real strengths of us as a company. We've had a very, very clear strategy for a long period of time.

Speaker #2: We've been very, very disciplined and focused in delivering against that strategy. We're very clear on what we want to be, but also very, very clear on what we don't want.

Speaker #2: To be, and I think that keeping that strategy simple and executing against that with absolute discipline and focus has been the hallmark of our success.

David Macgeorge: I think that keeping that strategy simple and executing against that with absolute discipline and focus has been the hallmark of our success. The growth phase is now very much morphing into the leadership phase. We want to be a zero-harm leader and a place that people want to work and clients want to partner with us. We continue to enhance both innovation technology to drive sustainable growth and competitive advantage. The reality is we have a lot of in-house software and capability in SRG Global. I very much see innovation and technology as the enabler to execute work and then give ourselves a point of difference with our clients that they value. We have a lot of technology and software within the group.

Speaker #2: The growth phase is now very much morphing into the leadership phase. We want to be a zero-harm leader in a place where people want to work and clients want to partner with us.

Speaker #2: We're continuing to enhance both innovative technology to drive sustainable growth and competitive advantage. The reality is, we have a lot of in-house software and capability in SRG Global.

Speaker #2: I very much see innovation and technology as the enabler to execute work and give ourselves a point of difference with our clients that they value.

Speaker #2: But we have a lot of technology and software within the group, and a lot of smart things we're doing around AI, which is really about driving productivity—giving us good insight, data, and reporting to make good decisions.

David Macgeorge: A lot of smart things we are doing around AI, which is really about driving productivity, giving us good insight, data, and reporting to make good decisions. The reality is leaders, particularly on the front line, having that data and insight to make good decisions is where really I see AI will continue to make a very strong difference for us as a group. We will continue to make selective strategic acquisitions that either complement our capability or our footprint. The reality is we have got very strong organic growth profile in front of it, and we will overlay that with inorganic opportunities where they make sense. We have got a very good track record of not only buying really good companies with high value for shareholders, but also integrating and enhancing those companies, but also those companies enhancing us, and that trend will continue.

Speaker #2: And the reality is, leaders—particularly on the front line—having that data and insight to make good decisions is where, really, I see AI will continue to make a very, very strong difference for us as a group.

Speaker #2: We'll continue to make selective, strategic acquisitions which either complement our capability or our footprint. The reality is we've got a very strong organic growth profile in front of us.

Speaker #2: And we will overlay that with inorganic opportunities where they make sense. We've got a very good track record of not only buying really good companies with high value for shareholders, but also integrating and enhancing those companies, and those companies enhancing us.

Speaker #2: And that trend will continue. We'll keep delivering consistent, above-market returns for shareholders. As I touched on at the start, we've achieved EPS growth of over 320% in the last five years, with extremely high total shareholder return over the same period.

David Macgeorge: We will keep delivering consistent above-market returns for shareholders. I touched on at the start, EPS growth of over 320% in the last 5 years, with extremely high total shareholder return over the same period. Underpinning that is that kind of 80% annuity recurring profile. The reality is it is probably a little bit higher than that at this point in time. It is not meant to be an exact figure, but what it is all about is having that underpinning foundational earnings, visibility, and platform to be very selective and targeted on all that win-and-do elements where we have really strong points of difference. The strategy is clear. The strategy is not changing. You are seeing a very clear evidence of executing against that strategy, and that will continue, which really provides that platform for sustainable growth. You can really see evidence today again of that strategic transformation.

Speaker #2: And underpinning that is that kind of 80% annuity-occurring profile. The reality is, it's probably a little bit higher than that at this point in time.

Speaker #2: It's not meant to be an exact figure, but what it's all about is having that underpinning, foundational earnings visibility and platform to be very selective and targeted on all the win-and-do elements, where we have really strong points of difference.

Speaker #2: So the strategy is clear. The strategy is not changing. You're seeing very, very clear evidence of executing against that strategy, and that will continue.

Speaker #2: Which really provides that platform for sustainable growth. And you can really see evidence today, again, of that strategic transformation. We have a terrific platform going into the future.

David Macgeorge: We have a terrific platform into the future, and it is about now continuing to leverage the footprint that we now have with the diverse services we can offer to clients that we play with today. We have more than AUD 5 billion work in hand, more than AUD 11 billion from an opportunity pipeline perspective. Today we are upgrading our guidance for 2027. You can really see what that means for the business and that track record of continuing to grow the business into the future, which is a good segue on slide 25 to the positive momentum of the group. Today we are upgrading our FY27 guidance, which should provide confidence of the visibility and the momentum in the group. We have more than AUD 5 billion work in hand and an AUD 11 billion-plus pipeline of opportunities.

Speaker #2: And it's about now continuing to leverage the footprint that we now have, with the diverse services that we can offer to clients that we play with today.

Speaker #2: We've got more than $5 billion working hand, more than $11 billion from an opportunity pipeline perspective. And again, today we're upgrading our guidance for 2027.

Speaker #2: You can really see what that means for the business and that track record of continuing to grow the business into the future.

Speaker #2: This is a good segue on slide 25 to highlighting the positive momentum of the group. Today, we're upgrading our FY27 guidance, which will provide confidence in the visibility and the momentum within the group.

Speaker #2: Got more than $5 billion work in hand, and then $11 billion plus in pipeline opportunities. Positive exposure. A lot of good growth sectors, including water, energy, resources, transport, defense, health, education, data centers, and ports, which really shows the diverse sectors on which we play.

David Macgeorge: Positive exposure to a lot of good growth sectors, including water, energy, resources, transport, defense, health, education, data centers, and ports and marine, which really show the diverse sectors on which we play. All have really strong growth tailwinds in front of them. That earnings profile, sort of 80% annuity recurring, which gives that visibility, confidence, and certainty into the future. That strategic transformation to a diversified infrastructure services company will continue to deliver really consistent growth, but I think most importantly, high-quality returns. One of the key messages out of today, yes, it is a record result. It is an exceptionally strong result on all metrics.

Speaker #2: All have really strong growth tailwinds in front of them. Our earnings profile is sort of 80% annuity recurring, which gives that sort of visibility, confidence, and certainty into the future.

Speaker #2: And that strategic transformation towards a diversified infrastructure services company will continue to deliver really consistent growth, but I think, most importantly, high-quality returns.

Speaker #2: And one of the key messages out of today—yes, it’s a record result. It’s an exceptionally strong result on all metrics. But it’s the quality that sits behind it: the quality of the numbers, the quality of the services we provide, the quality of the sectors that we play in.

David Macgeorge: But it is the quality that sits behind it, the quality of the numbers, the quality of the services we provide, the quality of the sectors that we play in, and most importantly, the quality of the people that are delivering the services that SRG provides. Which is a great segue into the investment proposition on slide 26 of SRG Global, which is basically the reason we are all here. We have full end-to-end asset lifecycle capability where we self-perform everything that we do. We play across diverse market sectors and geographies, and I would say that gives us a natural hedge. We are not relying on one client, one sector, one geography on which to apply our skills. We have a very broad platform on where we can play and where we can grow. We have a highly scalable business model from an experience, a systems, and a structure perspective.

Speaker #2: And most importantly, the quality of the people that are delivering the services that SRG provides— which is a great segue into the investment proposition on slide 26 of SRG Global, which is basically the reason we're all here.

Speaker #2: We have full end-to-end asset lifecycle capability, where we self-perform everything that we do. We play across diverse market sectors and geographies, and I always say that gives us a natural hedge.

Speaker #2: They're not relying on one client, one sector, or one geography on which to apply our skills. We have a very, very broad platform where we can play and where we can grow.

Speaker #2: We have a highly scalable business model from an experience, systems, and structure perspective. And you're really seeing today, again, further evidence of us scaling the business, improving the business, and driving the quality of the business.

David Macgeorge: We have a highly scalable business model from an experience, a systems, and a structure perspective. You are really seeing today, again, further evidence of us scaling the business, improving the business, driving the quality of the business. A high level of annuity earnings profile, which really brings that not only predictability and consistency, but also the forward visibility of how we will continue to grow the business into the future. A very capital-light investment profile with CapEx circa 2% of revenue. A really high-growth dividend-paying stock, and I think that is something we have done very well over the journey in terms of balancing not only the growth of the business, but also the dividends and returns to shareholders.

David Macgeorge: You are really seeing today, again, further evidence of us scaling the business, improving the business, driving the quality of the business. A high level of annuity earnings profile, which really brings that not only predictability and consistency, but also the forward visibility of how we will continue to grow the business into the future. A very capital-light investment profile with CapEx circa 2% of revenue. A really high-growth dividend-paying stock, and I think that is something we have done very well over the journey in terms of balancing not only the growth of the business, but also the dividends and returns to shareholders. I really want to thank the shareholders today for your support over the last 12 months, and I want to give you reassurance we are not patting ourselves on the back today. It is a really strong result. It is a result that our people are very proud of.

Speaker #2: A high level of annuity earnings profile, which really brings not only predictability and consistency, but also the forward visibility of how we'll continue to grow the business into the future.

Speaker #2: A very capital-light investment profile, with CapEx circa 2% of revenue, and a really high-growth, dividend-paying stock. I think that's something we've done very, very well over the journey, in terms of balancing not only the growth of the business, but also the dividends and returns to shareholders.

Speaker #2: I really want to thank the shareholders today for your support over the last 12 months. And I want to give you reassurance—we're not patting ourselves on the back today.

David Macgeorge: I really want to thank the shareholders today for your support over the last 12 months, and I want to give you reassurance we are not patting ourselves on the back today. It is a really strong result. It is a result that our people are very proud of. We are back to work now. It is about delivering a really high-quality result in FY27 and beyond. Finally, I again want to thank our people. You keep stepping up. You keep living for the challenge. You keep being smarter together. You never give up, and you have each other's backs. I cannot thank you enough for your performance and the result that I have got the privilege to deliver today, and we are well on the way to being the company that I know we can be. So thank you.

Speaker #2: It's a really strong result. It's a result that our people are very, very proud of. But we're back to work now. It's about delivering a really high-quality result in FY27 and beyond.

David Macgeorge: We are back to work now. It is about delivering a really high-quality result in FY27 and beyond. Finally, I again want to thank our people. You keep stepping up. You keep living for the challenge. You keep being smarter together. You never give up, and you have each other's backs. I cannot thank you enough for your performance and the result that I have got the privilege to deliver today, and we are well on the way to being the company that I know we can be. So thank you.

Speaker #2: And finally, I again want to thank our people. You keep stepping up. You keep living for the challenge. You keep being smart together. You never give up.

Speaker #2: And you have each other's backs. I can't thank you enough for your performance and the result that I've had the privilege to deliver today.

Speaker #2: And we're well on the way to being the company that I know we can be. So, thank you.

Speaker #1: That's awesome, David. Thank you for that presentation. We're now going to Q&A. And again, for those of you that haven't put in questions, as you wish to, please feel free to do so.

Roger Lee: That is awesome, David. Thank you for that presentation. We will now go into Q&A. Again, for those of you that have not put in questions as you wish to, please feel free to do so. I will just start from the very top. So the first one is from Max Andrews, United Capital. Max Andrews, "Well done, guys. Can you talk to the organic growth in the H2 looking like that has picked up materially and unpack some of the drivers behind this? Second part, expectations on the TAMS for FY27 and expectations on earn-outs.

Speaker #1: And I'll just start from the very top. So the first one's from Max Andrews, United Capital. Max Andrews: Well done, guys. Can you talk to the organic growth in the second half? It looks like that has picked up materially. Can you unpack some of the drivers behind this?

Speaker #1: And the second part—expectations for TAMS for FY27 and expectations on earnouts.

Speaker #3: I think Max had a really strong performance organically over the second half, which gave me a 45/55 split—business and some of the work we pick up early translates into the second half of the year.

David Macgeorge: I think Max, really strong performance organically over the H2. We are generally a 45-55 split business, and some of the work we pick up early translates into the H2 of the year. So I think that is something that is really across the board from organic perspective, pretty consistent between both Engineering & Construction and Maintenance & Industrial Services, and we expect that to continue. From a TAMS perspective, certainly coming into FY27, it will grow at least in line with the profile of the rest of the group. The reality is they do have some good near-term and medium-term opportunities. So we will see how those play out over the next 12 to 15 months from an in and out perspective. It will grow strongly into 2027.

Speaker #3: So I think that's something that's really, across the board from an organic perspective, pretty consistent between both engineering construction and maintenance and industrial service. And we expect that to continue.

Speaker #3: From a TAMS perspective, certainly coming into FY27, it'll grow at least in line with the profile of the rest of the group. The reality is, I do have some good near-term and medium-term opportunities.

Speaker #3: So we'll sort of see how those play out over the next 12 to 15 months from an earn-out perspective. But it will grow strongly into '27.

Speaker #1: Okay. Yeah. Excellent. Next one's from Brett Westbury: "Thanks for your outstanding work. I understand it must be immaterial, but could you please comment on the EQS receivable?"

Roger Lee: Okay. Yeah, excellent. Next one is from Brett Westbury. "Thanks for the outstanding work. I understand it must be immaterial, but could you please comment on the EQS receivable?" I will take this one, David. So yes, no, it is clearly immaterial. I can comment to say that the matter has been settled with no financial impact to the group, so it is now dealt with and in the past. The next one is from Joseph House. "Hi, team. Congrats on a solid financial update. Are you able to give us a sense of how the Diona business performed in the H2, and how your thinking is about its growth rate in FY27 relative to 2026? Understandably, we have seen a lot of new contracts for Diona. Is it reasonable to assume the run rate is higher in FY27?

Speaker #1: I'll take this one, David. So, yes—no, it is clearly immaterial. I can comment to say that the matter has been settled with no financial impact to the group.

Speaker #1: So, it is now dealt with and in the past. The next one is from Joseph House. Hi, team. Congrats on a solid financial update.

Speaker #1: Are you able to give us a sense of how the Deona business performed in the second half, and how your thinking is about its growth rate in FY27 relative to FY26?

Speaker #1: Understandably, we've seen a lot of new contracts for Deona. Is it reasonable to assume the run rate is higher in FY27?

Speaker #3: Well, we have to wash them out. That was self-directed. We saw Joseph and TAMS very much as our utilities business today, not the overlookers. Had a really strong '26.

David Macgeorge: Well, I'll have to wash the mouth out myself, Joseph, in terms of it is very much our utilities business today, not Diona. It has had a really strong 2026. I mean, the reality is SRG Global's historical business has been very, very strong in water. Diona certainly added to the water thematic. For us, it is now the largest sector within the group. It has had a very, very strong FY26, and we will continue to see that translate into FY27, particularly some of the things that we have picked up in government land about those long-term programs and how we execute against those. So it will be a strong performance in 2027, but very much in line with how the rest of the group performs. I mean, the reality is the growth profile across the entire group in the different sectors we play in, it will all grow pretty consistently.

Speaker #3: I mean, the reality is SRG Global's historical business has been very, very strong in water. Deona certainly added to the water thematic for us.

Speaker #3: It is now the largest sector within the group. It's had a very, very strong FY26, and we'll continue to see that translate into FY27, particularly some of the things that we've picked up in government land about those long-term programs and how we execute against those.

Speaker #3: So it will be a strong performance in ’27, but very much in line with how the rest of the group performs. I mean, the reality is the growth profile across the entire group in the different sectors we play in.

David Macgeorge: I mean, the reality is the growth profile across the entire group in the different sectors we play in, it will all grow pretty consistently.

Speaker #3: It will all grow pretty consistently.

Speaker #1: And clearly, just to add on that too, the commercial framework that utilities bring into the SRG group, which is through the long-term government contracts, is significant for us. Again, it speaks to the quality of the business as well.

Roger Lee: Clearly, just to add on that too, the commercial framework that utilities brings into the SRG group, which is through the long-term government contracts, is significant for us, again, speaks to the quality of the business as well. Next one again from Joseph. "Can you provide any color on your M&A pipeline? Any advanced discussions?

Speaker #1: Next line again, from Joseph: Can you provide any color on your M&A pipeline? Any advanced discussions?

Speaker #3: Well, I think from an M&A perspective, there are certainly things that we continue to assess. My largest focus is primarily on driving the organic growth of the group.

David Macgeorge: Well, looking from an M&A perspective, there are certainly things that we continue to assess. My largest focus is primarily on driving the organic growth of the group and then inorganic where it makes sense. So there are certainly things that we continue to assess, and I think one of the positive pieces of our business, we have got a really strong track record of M&A, but we have a very strong track record of organic growth within the group. The best M&A happens generally when you do not need it. There are certainly things that may enhance our group as a whole, but there is nothing that we want to call out today.

Speaker #3: And then inorganic, where it makes sense. So there are certainly things that we continue to assess. And I think one of the positive aspects of our business is that we've got a really strong track record of M&A.

Speaker #3: But we have a very strong track record of organic growth within the group. And the best M&A happens generally when you don't notice it. There are certainly things that may enhance our group as a whole.

Speaker #3: But there's nothing that we might call out today.

Speaker #1: Yeah. Next one's from Amanda Kelly from Barrenjoey. Hi, team. Wondering if you can help us understand how you're thinking about the visibility of the E&C pipeline for '27 and how you might see the phasing of that playing out across the year.

Roger Lee: Yep. Next one from Amanda Kelly from Barrenjoey. "Hi, team. Wondering if you can help us understand how you are thinking about the visibility of E&C pipeline for 2027 and how we might see the phasing of that playing out across the year, and any sector mix changes or trends you are seeing in your book.

Speaker #1: And any sector mix changes or trends you're seeing in your book?

Speaker #3: Look, I think as a group, it's generally a 45/55 split, sort of first half, second half, holistically. It might be a smidge higher than that in the FY27 year.

David Macgeorge: Look, I think as a group, it's generally a 45-55 split H1, H2. Holistically, it might be a smidge higher than that in the FY27 year. I think from an E&C perspective, really positive opportunities across the board, primarily in water, transport, defense, resources, health, and data centers are probably the primary areas where we see good opportunity across the board. I certainly think one of the great things that I touched on earlier, that we've kind of got a natural hedge is we're not relying on any one individual sector. We can grow a lot of different ways, which is pretty powerful from an E&C perspective, where it's very much a win and do piece.

Speaker #3: I think from an E&C perspective, there are really positive opportunities across the board, primarily in water, transport, defense, resources, health, and data centers. Those are probably the primary areas where we see good opportunity across the board.

Speaker #3: And I certainly think one of the great things, as I touched on earlier, is that we've kind of got a natural hedge. We're not relying on any one individual sector.

Speaker #3: We can grow in a lot of different ways, which is pretty powerful from an E&C perspective, where it's very much a win-and-do piece. So, there are a lot of diverse opportunities we have in front of us, but we're not relying on any one individual project or sector to deliver the earnings growth profile into the future.

David Macgeorge: There's a lot of different, diverse opportunities we have in front of us, but we're not relying on any one individual project or sector to sort of deliver the earnings growth profile into the future.

Speaker #1: Yeah, no, I fully agree with that one. Next one, also from Amanda Kelly. Some of this you might have covered off there, but I'll go through it anyway.

Roger Lee: Yeah. No, fully agree with that. Next one also from Amanda Kelly. Some of these you might have covered off there, but I'll go through it anyway. "Hi, just on TAMS, interested to understand the opportunities that might play out for the business this year and the potential you see for margin expansion.

Speaker #1: Hi, just on TAMS—interested to understand the opportunities that might play out for the business this year, and the potential you see for margin expansion.

Speaker #3: Look, there are some good near-term opportunities and some medium-term ones. For TAMS, I mean, I opened the tone of delivering a really strong first date month.

David Macgeorge: There's some good near-term opportunities and some medium-term ones for TAMS. I mean, over the term of delivering a really strong first 8 months, and we see that opportunity in FY27 only increasing from here. I won't sort of call out individual opportunities. From a commercial perspective, I view that as slightly sensitive. But there are some good opportunities. I think margin expansion, probably, I think TAMS' margin performance will be very consistent with where it's historically been. Probably from a group perspective, we see some opportunities for some incremental margin improvement at EBITDA and EBITA level over the course of FY27.

Speaker #3: And we see that opportunity in FY27 only increasing from here. I won't sort of quote individual opportunities. From a commercial perspective, I'd view that as slightly sensitive.

Speaker #3: But there are some good opportunities. And I think margin expansion probably—I think TAMS margin performance will be very consistent with where it's historically been, probably from a group perspective.

Speaker #3: We see some opportunities for selling incremental margin improvement at the EBITDA and EBITA levels over the course of FY27.

Speaker #1: And clearly, TAMS's margins are industry-leading. For sure. One from Joseph again: you want engineering construction segment EBITDA margins were a lot stronger in the second half than the first half.

Roger Lee: TAMS' margins are industry-leading.

David Macgeorge: Yeah, absolutely.

Roger Lee: For sure. One from Joseph again. "Your Engineering & Construction segment EBITDA margins were a lot stronger in the H2 than H1. Shall we attribute this relative performance to mix of projects delivered or contingencies or?

Speaker #1: Shall we attribute this relative performance to the mix of projects delivered, or contingencies, or?

Speaker #3: I think we're generally a 45/55 first half, second half. It's probably more just a timing of different projects, and sort of nothing out of the ordinary from an E&C perspective.

David Macgeorge: I think we are generally at a 45-55 H1, H2. It is probably more just the timing of different projects. I think it is nothing out of the ordinary from an E&C perspective. I cannot quite recall. I am pretty sure I might have mentioned it the H1 of E&C would be stronger in the H2, and we have really seen that play out.

Speaker #3: And I can't quite recall. I'm pretty sure I might have mentioned that the first half of E&C would be stronger than the second half, and you've really seen that play out.

Speaker #1: Perfect. Next one's from Nick Rollins, sent from Morgan's. Organic EBITDA growth was up nearly 20% in the second half. I don't expect you to have the numbers on hand, but does it feel like the company is in the strongest position from an organic growth perspective as you head into '27 and beyond?

Roger Lee: Perfect. Next one's from Nick Rollinson, sent from Morgans. "Organic EBITA growth was up nearly 20% in H2." I do not have the numbers on hand, but does it feel the company's in the strongest position from an organic growth position as you head into 2027 and beyond? The next one's a TAMS one. It says, "E&C award in June. Have you won any further E&C awards in TAMS and what's the tender pipeline look like generally?

Speaker #1: And then the next one's the TAMS one. It's the first E&C award in June. Have you won any further E&C awards in TAMS, and what's the tender pipeline look like generally?

Speaker #3: Look, I think if we touch on the first question about the strength of the company, the company's in an exceptionally strong position. And the reality is, organically, we'll continue to grow into ’27.

David Macgeorge: Look, I think, if we touch on the first question about the strength of the company, the company's in exceptionally strong position. The reality is organically we will continue to grow into 2027 and you are sort of seeing that through the guidance that I have provided. I think for others, the side is in the strongest position we have been in. Certainly from my personal perspective, I believe that is the case. The reality is we are growing and we are compounding. So we are growing from a higher base again and again, and you are seeing further evidence of that in 2026, but also coming forward into 2027. From a TAMS perspective, we did have its first E&C win in June with BCI. There are some reasonably positive near and medium-term opportunities in this space.

Speaker #3: And you're sort of seeing that through the guidance that I've provided. I think for others to decide if it is the strongest position we've been in—certainly from my personal perspective, I believe that is the case.

Speaker #3: And the reality is, we're growing over compounding. So we're growing from a higher base, again and again. And you're seeing further evidence of that in '26, but also coming forward into '27.

Speaker #3: And from a TAMS perspective, we did have its first E&C win in June with BCI. There are some reasonably positive near- and medium-term opportunities in the space.

Speaker #3: And I think the TAMS business has got some positive things in front of it, but also is executing what is a high-quality, scale business from a maintenance perspective as well.

David Macgeorge: I think the TAMS business has got some positive things in front of it, but also is executing what is a high-quality scale business from a maintenance perspective as well.

Speaker #1: For sure. Next one's from Gavin Allen from Euroz Hartleys. Quick one from me, team. TAMS circuit 10% above budget. Was this via stronger than expected maintenance work, or did you see an increase in project works, or both?

Roger Lee: For sure. Next one's from Gavin Allen from Euroz Hartleys. Quick one from me. Team TAMS circa 10% above budget. Was this via stronger than expected maintenance works, or did you see an increase in project works or both?

Speaker #3: It's really more from a maintenance perspective. The sort of translation of E&C will most probably kick in a little bit more in FY27.

David Macgeorge: It is really more from a maintenance perspective. The translation of E&C will more probably kick in a little bit more in FY27.

Roger Lee: Next one is from Nick Rollinson. Again, organic EBITA.

Speaker #1: Next one is from Nick Rollinson. Again, organic EBITDA growth.

Speaker #3: I think we've touched on that one.

David Macgeorge: I think we have touched on that one already, yeah.

Speaker #1: Yeah. Okay, that one's done. One from John Anderson, long-term shareholder: Great result and great future. Thank you very much to the SRG team from a long-term investor.

Roger Lee: Okay, that one is done. One from John Anderson, long-term shareholder. Great result and great future. Thank you very much to the SRG team from a long-term investor. Yeah, very much appreciate that comment, John. Thank you. One from Phil Pepe from Shaw and Partners. Great result, guys. H2 2026 EBITDAs, AUD 99 million makes FY27 EBITDAs guidance look conservative given the usual one half, H2 split. Can you elaborate on the factors affecting the guidance range, please?

Speaker #1: Yeah, very much appreciate that comment, John. Thank you. One from Phil Pepe. Great from Shores. Great result, guys. Second half '26 EBITDA of $99 million makes your FY27 EBITDA guidance look conservative given the usual one-half, second-half split.

Speaker #1: Can you elaborate on the factors affecting the guidance range, please?

Speaker #3: Yeah, look, we're generally a 45/55 first-half, second-half split. So the second-half result is generally not always the way to sort of think about coming into the following year.

David Macgeorge: Yeah, look, we are generally a 45/55 H1, H2 split, so the H2 result is generally not always the way to think about coming into the following year. The reality is we are in a great position. Guidance of AUD 195 million to AUD 205 million. Look, really, I think the case swing factor is going to be less around what is locked in and what is visible. It is more about timing of when certain things are spent.

Speaker #3: The reality is we're in a great position. Guidance of 195, 205. And look, really, I think the case loom factor is kind of going to be less around what's locked in and what's visible.

Speaker #3: It's more about the timing of when certain things are spent.

Speaker #1: Yeah. And one from Matt Chen from Moelis. Thanks, Matt, for your question. Morning, guys. Well done. Just on the cash conversion—anything you can call out on the strong FY26 cash conversion?

Roger Lee: Yeah. One from Matt Chen from Moelis. TAMS back to question. Morning, guys. Well done. Just on the cash conversion. Anything to call out on the strong FY26 cash conversion?

Speaker #3: Look, nothing out of the ordinary. Look, I always say use 80% as a good proxy from a cash perspective. We've got a really, really good track record of delivering cash-backed profit, and expect that to continue.

David Macgeorge: Look, nothing out of the ordinary. Look, I always say use 80% as a good proxy from a cash perspective. We have got a really, really good track record of delivering cash back profit and we expect that to continue. The reality is it is not going to be 100% every single year. I think 80% is a very, very good proxy to hold against this.

Speaker #3: The reality is, we're not going to be at 100% every single year. I think 80 is a very, very good proxy to hold against this.

Speaker #1: All right. This one's for you too, David. The one from Albert Landman is obviously a private investor. Having been invested with a client and managed having been invested with client and managed accounts since 2020 and start of turnaround when 5.5% dividend kicked in, you have not failed to deliver a sustainable growth through every reporting period.

Roger Lee: All right. This one is for you too, David. The one from Albert Landman, obviously a private investor. Having been invested with a client and managed accounts since 2020 and start of turnaround when 5.5 cent dividend kicked in, you have not failed to deliver sustainable growth through every reporting period. Curious how you maintain the rage and the discipline when the potential for hubris and resting on laurels is a human nature default after such a successful period.

Speaker #1: Curious how you maintain the rage and the discipline when the potential for hubris and resting on laurels is a human nature default after such a successful period.

Speaker #3: Look, I think— to me, it's— Albert's made a really good point, and one that, when I talk about what we stand for: live for the challenge, smart together, never give up, and have each other's backs.

David Macgeorge: Well, I think to me, Albert, it is a really good point and one that we know. When I talk about what we stand for, live for the challenge, smarter together, never give up, and have each other's backs. These are not words on a wall or on a page. That is how we live and drive our performance. I think that is something that I am really conscious of as we have got bigger, to really focus on what matters. The reality is, you get bigger, there can be a lot of peripheral initiatives that you can focus on. For us, it is about maintaining that discipline, about really focusing on what matters. For us, this is not a one, two, three-year horizon. You have seen evidence over six or seven years. The reality, Roger and I started in 2014. We are a AUD 30 million market cap with a few hundred people.

Speaker #3: So these are not just words on a wall or on a page—that's how we live and drive our performance. And I think that's something that I'm really conscious of, as we've gotten bigger, to really focus on what matters.

Speaker #3: And the reality is, as you get bigger, there can be a lot of peripheral initiatives that you can focus on. For us, it's about maintaining that discipline and really focusing on what matters.

Speaker #3: And for us, this is not a one-, two-, or sort of three-year horizon. You've sort of seen evidence over six or seven years. The reality now—Roger and I started in 2014.

David Macgeorge: The reality, Roger and I started in 2014. We are a AUD 30 million market cap with a few hundred people. I can assure you that we will be disciplined and focused as we deliver into the future. You will keep seeing evidence of that. It is really about us living and breathing our culture. We take it seriously, and I am very real when I say that is what is driving our performance, because it is.

Speaker #3: We're a $30 million market cap with a few hundred people. I can assure you that we'll be disciplined and focused as we deliver into the future.

David Macgeorge: I can assure you that we will be disciplined and focused as we deliver into the future. You will keep seeing evidence of that. It is really about us living and breathing our culture. We take it seriously, and I am very real when I say that is what is driving our performance, because it is.

Speaker #3: And you'll keep seeing evidence of that, and it's really about us living and breathing our culture. We take it seriously. I'm very real when I say that's what's driving our performance—because it is.

Speaker #1: Yeah. All right, thanks, everyone, for your questions. Sorry, one more just popped in—from DFDSF. What are the barriers to entry and winning more defense work?

Roger Lee: Yeah. All right. Thanks everyone for your questions. Sorry, one more has just popped in. From DFDFF. What are the barriers to entry in winning more defense work? Do you expect this to drive organic growth higher in 2027 and beyond?

Speaker #1: Do you expect this to drive organic growth higher in 2027 and beyond?

Speaker #3: Look, it's interesting in defense. I mean, it's one that's very much a medium-term play. For us, my sort of experience tends to be that it just tends to get pushed to the right.

David Macgeorge: Look, it is interesting in defense. It is one that is very much a medium-term play. For us, my experience tends to be that it just tends to get pushed to the right. It is probably one of a number of different sectors we play in, of which we can continue to grow from. The reality is our probably near-term opportunities are in other spaces. We play well in defense. I do not see a material uplift in FY27. I see it more as probably an FY29, FY30 story. But the reality is, we are ready. We have got the footprint and when the real spends come, we have hopefully got a position that we have got a point of difference where we can play.

Speaker #3: It's probably one of a number of different sectors we play in, from which we can continue to grow. So, the reality is that probably near-term opportunities are in other spaces we play well in, in defense.

Speaker #3: I don't see a material uplift in FY27. I sort of see it more as probably an FY29, FY30 story. But the reality is we're ready, we've got the footprint, and when the real spends come, we've hopefully got a position—that's where we've got a point of difference, where we can play.

Roger Lee: Mm-hmm. And one more has just popped in as well. From Dave Funaro. SRG Global has achieved impressive growth while improving margins. As the business continues to scale, what do you see the biggest challenge is to maintain that performance, and how can people on projects like us help address it?

Speaker #1: And one more just popped in as well, David, from David Ferraro. SRG has achieved impressive growth while improving margins. As the business continues to scale, what do you see as the biggest challenges to maintaining that performance, and how can people and projects like us help address it?

Speaker #3: Look, I think from our perspective, in terms of margin, you've really seen over the journey that we've got industry-leading margins that have continued to expand from both a quality and a financial perspective.

David Macgeorge: Look, I think from our perspective, from a margin, you've really seen over the journey, we've got industry-leading margins that have continued to expand from a quality and a financial perspective. Certainly, some of the great work we're doing in terms of insights and data to provide real-time data to make good decisions. I think through AI and other things will only help the decision-making moving forward. But it then comes down to people and leadership. You can have all the information, all the data, all the metrics, but it's really driven by leadership, and we put a lot of effort into our leadership, particularly at the front line. And to me, it's about culture, and that's really how it's going to keep driving the performance.

Speaker #3: Certainly, some of the great work we're doing in terms of insights and data to provide real-time data to make good decisions—I think through ALA and other things—will only help the decision-making moving forward.

Speaker #3: But it then comes down to people and leadership. You can have all the information, all the data, all the metrics, but it's really driven by leadership.

Speaker #3: And we put a lot of effort into our leadership, particularly at the front line. And to me, it's about culture. That's really how we're going to keep driving performance. And the reality is, I spend most of my time thinking about how do we keep enhancing, maintaining, and improving the culture that we have.

David Macgeorge: And the reality is, I spend most of my time in thinking on how do we keep enhancing, maintaining, improving the culture that we have, and we take it seriously because that's what drives the performance.

Speaker #3: And we take it seriously because that’s what drives the performance.

Roger Lee: Yeah. And clearly someone like yourself, Dave, who works on a project for us, you care for us, you care for the project, you own your stuff. So all I can say as well, reiterate what David's saying, is that keep doing what you're doing, which is keep owning your stuff and through that ownership is where the company improves and performs. And that's the end of our questions. So thank you everyone for joining the call, and we'll call it at an end.

Speaker #1: And, curious—someone like yourself, David, who works on a project for us—you care for us, you care for the project, and you own your stuff.

Speaker #1: So, all I can say is, well, to echo what David sings—that is, keep doing what you're doing, which is keep owning your stuff, and through that ownership is where the company improves and performs.

Speaker #1: And that's the end of our questions. So, thank you everyone for joining the call. We'll call it an end.

Speaker #3: Thank you.

Operator: Thank you.

David Macgeorge: Thank you.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.