Q4 2026 Wagners Holding Co Ltd Earnings Call

August 18, 2026

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Speaker #2: Good morning, everyone, and welcome to Wagners' full-year FY26 results webinar. I'm Sam Wells from NWR, and joining me from the company today are Managing Director Cameron Coleman, Chief Financial Officer Fergus Hume, and Karen Brown, General Counsel and Company Secretary.

Sam Wells: Morning, everyone, and welcome to Wagners' full year FY26 results webinar. I am Sam Wells from NWR, and joining me from the company today is Managing Director, Cameron Coleman; Chief Financial Officer, Fergus Hume; and Karen Brown, General Counsel and Company Secretary. Following a brief summary of the results released to the ASX this morning, we will have some time for Q&A of the management team. There will be a choice of two options. First, research analysts will be able to raise your hand should you wish to ask a verbal question of the management team, or we will also take written submitted questions via the Q&A function at the bottom of your screen throughout today's presentation. We will endeavor to get to the majority of questions asked, in some cases, combining questions on the same or similar topic. With that, I will pass it over to you, Cameron.

Sam Wells: Morning, everyone, and welcome to Wagners' Full Year FY 2026 Results Webinar. I am Sam Wells from NWR, and joining me from the company today is Managing Director, Cameron Coleman; Chief Financial Officer, Fergus Hume; and Karen Brown, General Counsel and Company Secretary. Following a brief summary of the results released to the ASX this morning, we will have some time for Q&A of the management team.

Speaker #2: Following a brief summary of the results released to the ASX this morning, we will have some time for Q&A with the management team. There will be a choice of two options: first, research analysts will be able to raise your hand should you wish to ask a verbal question of the management team; or we will also take written submitted questions via the Q&A function at the bottom of your screen throughout today's presentation.

Sam Wells: There will be a choice of two options. First, research analysts will be able to raise your hand should you wish to ask a verbal question of the management team, or we will also take written submitted questions via the Q&A function at the bottom of your screen throughout today's presentation. We will endeavor to get to the majority of questions asked, in some cases, combining questions on the same or similar topic. With that, I will pass it over to you, Cameron.

Speaker #2: We'll endeavor to get to the majority of questions asked, in some cases combining questions on the same or similar topic. So with that, I'll pass it over to you, Cameron.

Speaker #3: Okay, thanks, Sam. And good morning, ladies and gentlemen, and welcome to our full-year results presentation for FY26. As Sam pointed out, I'm here today with Fergus Hume, our CFO, and Karen Brown, our General Counsel and Company Secretary.

Cameron Coleman: Okay. Thanks, Sam, and good morning, ladies and gentlemen, and welcome to our full year results presentation for FY26. As Sam pointed out, I am here today with Fergus Hume, our CFO, and Karen Brown, our general counsel and company secretary. In short, FY26 has been a great year for Wagners. The business has delivered an improved result on the prior period, with strong growth across each of our key businesses. Our group revenue for the year was just over AUD 500 million, compared to AUD 431 million last year, with strong activity across the construction materials business and continued growth in Composite Fiber Technologies. Improved margins across all businesses, construction materials, CFT, and project services delivered an operating EBIT result of AUD 67.2 million, and that reflects a 53% increase on last year, where the operating EBIT was AUD 41.8 million.

Speaker #3: So, in short, FY26 has been a great year for Wagners. The business has delivered an improved result on the prior period, with strong growth across each of our key businesses.

Speaker #3: Our group revenue for the year was just over $500 million, compared to $431 million last year, with strong activity across the construction materials business and continued growth in composite fiber technologies.

Cameron Coleman: Our group revenue for the year was just over AUD 500 million, compared to AUD 431 million last year, with strong activity across the construction materials business and continued growth in Composite Fiber Technologies. Improved margins across all businesses, construction materials, CFT, and project services delivered an operating EBIT result of AUD 67.2 million, and that reflects a 53% increase on last year, where the operating EBIT was AUD 41.8 million.

Speaker #3: Improved margins across all businesses—Construction Materials, CFT, and Project Services—delivered an operating EBIT result of $67.2 million. That reflects a 53% increase on last year, when the operating EBIT was $41.8 million.

Speaker #3: The result was driven by strong market conditions that we're currently operating in, which has supported increased volumes and pricing, the increased utilization of assets across the group, along with good operating discipline.

Cameron Coleman: The result was driven by strong market conditions that we are currently operating in, which has supported increased volumes and pricing, the increased utilization of assets across the group, along with good operating discipline. Net profit after tax for the year was AUD 40.5 million, significantly higher than the corresponding period, which was AUD 22.7 million. The strong operating cash flow generation has enabled us to fund a number of CapEx projects that will result in expanded capacity and operational efficiencies, which Fergus will go through shortly. While the CapEx spend for the year at AUD 51.1 million was significantly higher than the prior year, the improved earnings, together with funds raised through the placement earlier in the year, have enabled us to reduce our net debt to AUD 800,000. A significant reduction from the AUD 34 million at the end of FY25.

Speaker #3: Net profit after tax for the year was $40.5 million, significantly higher than the corresponding period, which was $22.7 million. The strong operating cash flow generation has enabled us to fund a number of CapEx projects that will result in expanded capacity and operational efficiencies, which Fergus will go through shortly.

Cameron Coleman: The strong operating cash flow generation has enabled us to fund a number of CapEx projects that will result in expanded capacity and operational efficiencies, which Fergus will go through shortly. While the CapEx spend for the year at AUD 51.1 million was significantly higher than the prior year, the improved earnings, together with funds raised through the placement earlier in the year, have enabled us to reduce our net debt to AUD 800,000. A significant reduction from the AUD 34 million at the end of FY25.

Speaker #3: While the CapEx spend for the year at $51.1 million was significantly higher than the prior year, the improved earnings, together with funds raised through the placement earlier in the year, have enabled us to reduce our net debt to $800,000.

Speaker #3: This represents a significant reduction from the $34 million at the end of FY25. Given the performance, the board has declared a full-year dividend for FY26 of $0.05 per share.

Cameron Coleman: Given the performance, the board have declared a full year dividend for FY26 of AUD 0.05 per share. We will now have a look at each of the operating segments, starting with construction materials, which has once again delivered strong results, generating revenue of AUD 328 million, which represents 28% growth on the prior year. The market for construction materials in FY26 has been particularly good. The demand has certainly increased on the prior year, with volumes up across each of the businesses. The increased volumes, together with increased selling prices and operational efficiencies, have meant we have experienced good increase in margins, delivering an EBIT result for construction materials of AUD 56 million. In cement, volumes increased 11% on the prior year, which supported revenue growth of 14%.

Speaker #3: We'll now have a look at each of the operating segments, starting with Construction Materials, which once again delivered strong results, generating revenue of $328 million. This represents 28% growth on the prior year.

Speaker #3: The market for construction materials in FY26 has been particularly good. Demand has certainly increased on the prior year, with volumes up across each of the businesses.

Cameron Coleman: The market for construction materials in FY26 has been particularly good. The demand has certainly increased on the prior year, with volumes up across each of the businesses. The increased volumes, together with increased selling prices and operational efficiencies, have meant we have experienced good increase in margins, delivering an EBIT result for construction materials of AUD 56 million. In cement, volumes increased 11% on the prior year, which supported revenue growth of 14%.

Speaker #3: The increased volumes, together with increased selling prices and operational efficiencies, have meant we've experienced a good increase in margins, delivering EBIT and EBIT result for construction materials of $56 million.

Speaker #3: In cement, volumes increased 11% on the prior year, which supported revenue growth of 14%. And the pleasing result was the increase in cement volumes required for our own concrete batching plant network, which was a 67% increase on the prior year.

Cameron Coleman: The pleasing result was the increase in cement volumes required for our own concrete batching plant network, which was a 67% increase on the prior year. With more Wagners Concrete plants to be commissioned in the near future and the buoyant market activity, this percentage will continue to improve. Margins also improved slightly due to better plant utilization and increased volumes, some pricing improvement, and operational efficiencies. With new plants coming online in FY26, improved performance from the current plants, and a general increase in concrete demand in Southeast Queensland, our concrete volumes increased 55% on the prior year, delivering a 66% increase in revenue. There has been continued improvement in selling prices, and together with good operating discipline, the business delivered improved margins and resulting EBIT. The growth in the concrete business adds significant value across the group through our vertically integrated supply chain model.

Speaker #3: With more Wagners' concrete plants to be commissioned in the near future, and the buoyant market activity, this percentage will continue to improve. Margins also improved slightly due to better plant utilization and increased volumes, some pricing improvement, and operational efficiencies.

Speaker #3: With new plants coming online in FY26, improved performance from the current plants, and a general increase in concrete demand in Southeast Queensland, our concrete volumes increased 55% on the prior year.

Cameron Coleman: With new plants coming online in FY26, improved performance from the current plants, and a general increase in concrete demand in Southeast Queensland, our concrete volumes increased 55% on the prior year, delivering a 66% increase in revenue. There has been continued improvement in selling prices, and together with good operating discipline, the business delivered improved margins and resulting EBIT. The growth in the concrete business adds significant value across the group through our vertically integrated supply chain model.

Speaker #3: Delivering a 66% increase in revenue. There has been continued improvement in selling prices, and, together with good operating discipline, the business delivered improved margins and resulting EBIT.

Speaker #3: The growth in the concrete business adds significant value across the group through our vertically integrated supply chain model. As new plants come online and concrete volumes improve, so does the performance of our cement, quarry, and transport businesses.

Cameron Coleman: As new plants come online and the concrete volumes improve, so does the performance of the cement, quarry, and transport businesses. We have added two new plants to the concrete plant network during FY26, being Slacks Creek and Wulkuraka. We commenced the development of a new plant at Caboolture, which will open in the H1 of this year, and we have got a number of other sites in various stages of development for commissioning over the next few years. The quarries business also delivered improved performance on the back of a 22% increase in volumes. The prior investment in capacity has enabled the business to service this rising demand. The increase in volumes together with operating efficiency improvements, resulted in a 25% increase in revenue and a 5% increase in the EBIT margin.

Speaker #3: We added two new plants to the concrete plant network during FY26, being Slacks Creek and Walkeracker. We commenced the development of a new plant at Caboolture, which will open in the first half of this year.

Speaker #3: And we've got a number of other sites in various stages of development for commissioning over the next few years. The quarry's business also delivered improved performance on the back of a 22% increase in volumes.

Cameron Coleman: The quarries business also delivered improved performance on the back of a 22% increase in volumes. The prior investment in capacity has enabled the business to service this rising demand. The increase in volumes together with operating efficiency improvements, resulted in a 25% increase in revenue and a 5% increase in the EBIT margin.

Speaker #3: The prior investment in capacity has enabled the business to service this rising demand. The increase in volumes, together with operating efficiency improvements, resulted in a 25% increase in revenue and a 5% increase in EBIT margin.

Speaker #3: Our Composite Fiber Technologies segment has delivered another strong result, with revenue growth of 38%, achieving a revenue result of $93.4 million for FY26. Increasing demand for composite products is translating into improved margins as volumes grow.

Cameron Coleman: Our Composite Fiber Technologies segment has delivered another strong result, with revenue growth of 38%, achieving a revenue result of AUD 93.4 million for FY26. Increasing demand for composite products is translating into improved margins as the volumes grow. The business delivered an EBIT result of AUD 18.1 million, which is up AUD 8.8 million on last year. In Australia and New Zealand, the demand for utility infrastructure remained extremely strong for the year. The business delivered a 15% increase in crossarm sales compared to FY25, and a 200% increase in poles compared to the prior year. The increased volume is generating manufacturing efficiencies, delivering improved margins. With the machines manufacturing these product lines well utilized, capacity remains a key focus for the business as demand is expected to continue to grow.

Speaker #3: The business delivered an EBIT result of $18.1 million, which is up $8.8 million on last year. In Australia and New Zealand, the demand for utility infrastructure remained extremely strong for the year.

Speaker #3: The business delivered a 15% increase in cross-arm sales compared to FY25, and a 200% increase in poles compared to the prior year. The increased volume is generating manufacturing efficiencies, delivering improved margins.

Cameron Coleman: The business delivered a 15% increase in crossarm sales compared to FY25, and a 200% increase in poles compared to the prior year. The increased volume is generating manufacturing efficiencies, delivering improved margins. With the machines manufacturing these product lines well utilized, capacity remains a key focus for the business as demand is expected to continue to grow.

Speaker #3: With the machines manufacturing these product lines well utilized, capacity remains a key focus for the business, as demand is expected to continue to grow.

Speaker #3: In addition to the strong demand for utility products throughout the year, the pedestrian infrastructure segment of the business continued to deliver good results, with targeted project selection driving improved margins from more than 300 projects that we executed throughout the year.

Cameron Coleman: In addition to the strong demand for utility products throughout the year, the pedestrian infrastructure segment of the business continued to deliver good results, with targeted project selection driving improved margins from more than 300 projects that we executed throughout the year. FY26 has also been a better year for the Wagners CFT business. We experienced good growth in revenue, particularly from the pedestrian infrastructure projects, and these have been well executed at improved margins. Through the year, there was an increase in demand for marine piles. An initial order was also received for power poles from a Californian electricity network. This has been a very positive step for the business, and we see poles as a significant opportunity in the US. A pultrusion machine that is capable of producing poles and marine piles was manufactured during FY26 and is currently being shipped to Texas to be commissioned later this year.

Speaker #3: FY26 has also been a better year for the US CFT business. We experienced good growth in revenue, particularly from the pedestrian infrastructure projects, and these have been well executed at improved margins.

Speaker #3: Throughout the year, there was an increase in demand for marine poles, and an initial order was also received for power poles from a Californian electricity network.

Cameron Coleman: An initial order was also received for power poles from a Californian electricity network. This has been a very positive step for the business, and we see poles as a significant opportunity in the US. A pultrusion machine that is capable of producing poles and marine piles was manufactured during FY26 and is currently being shipped to Texas to be commissioned later this year.

Speaker #3: This has been a very positive step for the business, and we see poles as a significant opportunity in the US. A protrusion machine that is capable of producing poles and marine piles was manufactured during FY26 and is currently being shipped to Texas to be commissioned later this year.

Speaker #3: This will both increase production capacity in general and enable the business to service the pole market with products manufactured locally, as opposed to Australia, which will drive higher margins on this product line in the US.

Cameron Coleman: This will both increase production capacity generally and enable the business to service the pole market from product manufactured locally as opposed to Australia, which will drive higher margins on this product line in the US. Moving on to the project services business, there was a decline compared to the prior year in our revenue, which we anticipated given the completion of two haulage projects. However, it was really pleasing to see the business deliver an improved EBIT result of AUD 8.1 million, which reflects a much more profitable mix of project work. In our bulk haulage business, two project contracts were renewed for a further five years on much more favorable terms. These contracts, together with the initial benefits of the fleet renewal program, which reduces repair and maintenance expenses, delivered a 2% expansion in the EBIT margin.

Speaker #3: Moving on to the project services business, there was a decline compared to the prior year in our revenue, which we anticipated given the completion of two haulage projects.

Speaker #3: However, it was really pleasing to see the business deliver an improved EBIT result of $8.1 million, which reflects a much more profitable mix of project work.

Cameron Coleman: However, it was really pleasing to see the business deliver an improved EBIT result of AUD 8.1 million, which reflects a much more profitable mix of project work. In our bulk haulage business, two project contracts were renewed for a further five years on much more favorable terms. These contracts, together with the initial benefits of the fleet renewal program, which reduces repair and maintenance expenses, delivered a 2% expansion in the EBIT margin.

Speaker #3: In our bulk haulage business, two project contracts were renewed for a further five years on much more favorable terms. These contracts, together with the initial benefits of the fleet renewal program—which reduces repair and maintenance expenses—delivered a 2% expansion in the EBIT margin.

Speaker #3: There were two concrete projects completed in FY26 which contributed positively to the project services result, and we've recently mobilized three mobile concrete plants to a new project, which will be delivered over the next 12 months.

Cameron Coleman: There were two concrete projects completed in FY26 which contributed positively to the project services result, and we have recently mobilized three mobile concrete plants to a new project which will be delivered over the next 12 months. There was very little revenue generated in our precast business in FY26, as we really focused on establishing the new facility preparing for future projects. The business delivered a small loss for the year as we anticipated. This project service business remains well-positioned to respond to project opportunities as they arise, and business development activities continued during the period in pursuit of a number of projects both in Australia and internationally. That is a bit of a summary on each of the segments for 2026. I will now let Fergus take you through the balance sheet and the cash flow.

Speaker #3: There was very little revenue generated in our pre-cast business in FY26, as we really focused on establishing the new facility and preparing for future projects.

Speaker #3: The business delivered a small loss for the year, as we anticipated. This project services business remains well positioned to respond to project opportunities as they arise, and business development activities continue during the period in pursuit of a number of projects both in Australia and internationally.

Cameron Coleman: This project service business remains well-positioned to respond to project opportunities as they arise, and business development activities continued during the period in pursuit of a number of projects both in Australia and internationally. That is a bit of a summary on each of the segments for 2026. I will now let Fergus take you through the balance sheet and the cash flow.

Speaker #3: So that is a bit of a summary on each of the segments for ’26. I'll now let Fergus take you through the balance sheet and the cash flow.

Speaker #2: Thanks, Karen. Our working capital has increased by $2.1 million, mainly due to increased trade receivables and trade payables. These two items have increased compared to June '25 as a result of significantly higher volumes in the construction materials business, especially in cement, concrete, and quarries.

Fergus Hume: Thanks, Cam. Our working capital has increased by AUD 2.1 million, mainly due to increased trade receivables and trade payables. These two items have increased compared to June 2025 as a result of significantly higher volumes in the construction materials business, especially cement, concrete, and quarries. These businesses all achieved record or near record volumes in the month of June 2026. The business had a net debt position of AUD 0.8 million at the end of June 2026, a AUD 33.2 million improvement from the net debt position of AUD 34 million at the end of June 2025. Improved operating results, as explained by Cam, have funded the increased capital and tax payments during the period.

Speaker #2: These businesses all achieved record or near-record volumes in the month of June 2026. The business had a net debt position of $0.8 million at the end of June 2026, a $33.2 million improvement from the net debt position of $34 million at the end of June 2025. Improved operating results, as explained by Cam, have funded the increased capital and tax payments during the period.

Fergus Hume: These businesses all achieved record or near record volumes in the month of June 2026. The business had a net debt position of AUD 0.8 million at the end of June 2026, a AUD 33.2 million improvement from the net debt position of AUD 34 million at the end of June 2025. Improved operating results, as explained by Cam, have funded the increased capital and tax payments during the period.

Speaker #2: The successful placement in September 2025, securing $30 million from both existing and new institutional investors, together with the improving operating results, provides significant undrawn debt facilities. This means we're well placed for growth opportunities, including the ongoing expansion of the concrete plant network, increased production capacity in the CFT business, expanded storage capacity in cement, and expansion of the quarry network.

Fergus Hume: The successful placement in September 2025, securing AUD 30 million from both existing and new institutional investors, together with the improving operating results, provide significant undrawn debt facilities, meaning we are well-placed for growth opportunities, including the ongoing expansion of the concrete plant network, increased production capacity in the CFT business, expanded storage capacity in cement, and expansion of the quarry network. If we look at the cash flow statement, good cash conversion from the operating results, together with reduced interest costs, partially offset by increased tax payments, has resulted in good operating cash flows. The increased capital expenditure in this period has mainly been on growth, focusing on concrete plant network expansion, increased manufacturing capacity for the CFT business, and capacity improvements in cement and quarries.

Speaker #2: We look at the cash flow statement. Good cash conversion from the operating results, together with reduced interest costs—partially offset by increased tax payments—has resulted in good operating cash flows.

Fergus Hume: If we look at the cash flow statement, good cash conversion from the operating results, together with reduced interest costs, partially offset by increased tax payments, has resulted in good operating cash flows. The increased capital expenditure in this period has mainly been on growth, focusing on concrete plant network expansion, increased manufacturing capacity for the CFT business, and capacity improvements in cement and quarries.

Speaker #2: The increased capital expenditure in this period has mainly been on growth, focusing on concrete plant network expansion, increased manufacturing capacity for the CFT business, and capacity improvements in cement and quarries.

Speaker #2: The second half also saw increased spend on renewal of transport projects and materials transport vehicles, as well as mobile equipment in concrete operations, engineering solutions, and quarry operations.

Fergus Hume: The H2 also saw increased spend on renewal of transport projects and materials transport vehicles and mobile equipment in concrete operations, engineering solutions, and quarry operations. The company carried out a successful placement in September 2025, and these funds will be deployed on the expansion of the concrete plant network and growth in the quarries and CFT businesses. The full year dividend was paid in the H1 of this year. Pass back to you, Cam.

Speaker #2: The company carried out a successful placement in September 2025, and these funds will be deployed on the expansion of the concrete plant network and growth in the quarries and CFT businesses.

Speaker #2: The full-year dividend was paid in the first half of this year. I'll pass back to you, Karen.

Speaker #3: Right. Thanks, Fergus. I'd like to move on now and have a look at the outlook for FY27 and beyond. The market growth we experienced in FY26 is expected to continue.

Cameron Coleman: Right. Thanks, Fergus. I would like to move on now and have a look at the outlook for FY27 and beyond. The market growth we have experienced in FY26 is expected to continue. Our assets, particularly in the construction materials segment, are well-placed to service this growth, which we expect will come from Olympics and other infrastructure requirements and strong residential housing sector and continued growth generally that we expect in South East Queensland. Regardless of what project or construction opportunities we play a role in, we expect an increase in demand for our products and therefore volume growth. Cement volumes should increase with the overall increase in market demand. However, the most significant increase will come from Wagners Concrete Plants as our network expands. We will also be investing in capacity and efficiency at the Pinkenba Cement Plant to service the volume growth expected.

Speaker #3: Our assets, particularly the construction materials segment, are well placed to service this growth, which we expect will come from Olympic and other infrastructure requirements, a strong residential housing sector, and generally continued growth that we expect in Southeast Queensland.

Speaker #3: Regardless of what project or construction opportunities we play a role in, we expect an increase in demand for our products and therefore volume growth.

Cameron Coleman: Regardless of what project or construction opportunities we play a role in, we expect an increase in demand for our products and therefore volume growth. Cement volumes should increase with the overall increase in market demand. However, the most significant increase will come from Wagners Concrete Plants as our network expands. We will also be investing in capacity and efficiency at the Pinkenba Cement Plant to service the volume growth expected.

Speaker #3: Cement volumes should increase with the overall increase in market demand; however, the most significant increase will come from Wagners' concrete plants as our network expands.

Speaker #3: We will also be investing in capacity and efficiency at the Pinkenba cement plant to service the volume growth expected. The cement business will, however, have some challenges that it will need to work through through FY27, with recent global events having an impact on some of our input costs, particularly clinker and shipping.

Cameron Coleman: The cement business will, however, have some challenges that it will need to work through through FY27. With recent global events having an impact on some of our input costs, particularly clinker and shipping. Our concrete plant network will be expanded by more plants, and capacity will be increased at some of our existing plants, both in the short and long term, all driving volume growth. Our concrete plant strategy to expand our South East Queensland concrete plant network will remain a key focus given the value that it generates right across the group. We will also continue to look for sites for further plants that align with the expansion strategy and deliver value to the network. We also expect further expansion in concrete margins as utilization of plants improve with increasing volumes and strong market conditions.

Speaker #3: Our concrete plant network will be expanded with more plants, and capacity will be increased at some of our existing plants—both in the short and long term.

Speaker #3: All driving volume growth. Our concrete plant strategy to expand our Southeast Queensland concrete plant network will remain a key focus, given the value that it generates right across the group.

Cameron Coleman: Our concrete plant strategy to expand our South East Queensland concrete plant network will remain a key focus given the value that it generates right across the group. We will also continue to look for sites for further plants that align with the expansion strategy and deliver value to the network. We also expect further expansion in concrete margins as utilization of plants improve with increasing volumes and strong market conditions.

Speaker #3: We will also continue to look for sites for further plants that align with the expansion strategy and deliver value to the network. We also expect further expansion in concrete margins as utilization of plants improves, with increasing volumes and strong market conditions.

Speaker #3: Quarry margins should also improve as a result of increased volumes expected and stronger market conditions. We will also continue to seek opportunities to expand our quarry network through the development of new quarry sites.

Cameron Coleman: Quarry margins should also improve as a result of increased volumes expected and stronger market conditions. We will also continue to seek opportunities to expand our quarry network through the development of new quarry sites. There are a number of greenfield sites we are currently in various stages of development and investigation on. These sites will ensure security of aggregate supply for our batch plant network, as well as supply to the broader general market. With the increase in construction expected and the positive contribution our steel business has made in FY26, we do intend to expand the reinforcing steel business. Given our current facilities at Toowoomba and Brisbane are nearing capacity, we feel the investment in this expansion is supported by the expected market demand.

Speaker #3: There are a number of greenfield sites we are currently in various stages of development and investigation on. These sites would ensure surety of aggregate supply for our batch plant network, as well as supply to the broader general market.

Cameron Coleman: These sites will ensure security of aggregate supply for our batch plant network, as well as supply to the broader general market. With the increase in construction expected and the positive contribution our steel business has made in FY26, we do intend to expand the reinforcing steel business. Given our current facilities at Toowoomba and Brisbane are nearing capacity, we feel the investment in this expansion is supported by the expected market demand.

Speaker #3: With the increase in construction expected and the positive contribution our steel business has made in FY26, we do intend to expand the reinforcing steel business.

Speaker #3: Given our current facilities at Toowoomba and Brisbane are nearing capacity, we feel the investment in this expansion is supported by the expected market demand.

Speaker #3: This will involve the acquisition of a new site and investment in more efficient plant and equipment for processing the steel. In CFT, we expect the Australia and New Zealand electricity networks to provide continued growth opportunities for both cross arms and poles.

Cameron Coleman: This will involve the acquisition of a new site and investment in more efficient plant and equipment for processing the steel. In CFT, we expect the Australia and New Zealand electricity networks to provide continued growth opportunities for both crossarms and poles. Increased volumes are expected from existing contracts, particularly power poles. We also expect new markets to be established for Wagners Composite Poles, both domestically and internationally. There has been plenty of work done to date in exploring these opportunities with positive customer engagement in other states of Australia not currently serviced, along with international opportunities we are identifying in the USA, New Zealand, the UK, and Europe. Our poles are already on trial in a number of those jurisdictions, so this is well advanced.

Speaker #3: Increased volumes are expected from existing contracts, particularly for power poles. We also expect new markets to be established for Wagners' composite poles, both domestically and internationally.

Speaker #3: There has been plenty of work done to date in exploring these opportunities, with positive customer engagement in other states of Australia not currently serviced, along with international opportunities we are identifying in the USA, New Zealand, the UK, and Europe.

Cameron Coleman: There has been plenty of work done to date in exploring these opportunities with positive customer engagement in other states of Australia not currently serviced, along with international opportunities we are identifying in the USA, New Zealand, the UK, and Europe. Our poles are already on trial in a number of those jurisdictions, so this is well advanced.

Speaker #3: Our poles are already on trial in a number of those jurisdictions, so this is well advanced. We have also invested in plant capacity in Australia, with two new machines expected to be operational in FY27, which will enable us to service this expected increase in demand for poles.

Cameron Coleman: We have also invested in plant capacity in Australia with two new machines expected to be operational in FY27, which will enable us to service this expected increase in demand for poles. Interest in composite pedestrian infrastructure is also expected to remain strong. With our composite product providing a durable alternative to traditional building materials, particularly in environments that are not favorable to traditional wood and steel structures. We also expect some margin improvement on these projects driven by the market conditions and operational efficiencies we are targeting in the business. Further improvement is expected in the USA business as well. There are a number of projects already secured for FY27, which will result in improved revenue. As I mentioned earlier, we are investing in additional pultrusion machine focused on pole and marine pile production, which will provide significant opportunities for the business.

Speaker #3: Interest in composite pedestrian infrastructure is also expected to remain strong. With our composite product providing a durable alternative to traditional building materials, particularly in environments that are not favorable to traditional wood and steel structures, we also expect some margin improvement on these projects, driven by the market conditions and operational efficiencies we are targeting in the business.

Cameron Coleman: We also expect some margin improvement on these projects driven by the market conditions and operational efficiencies we are targeting in the business. Further improvement is expected in the USA business as well. There are a number of projects already secured for FY27, which will result in improved revenue. As I mentioned earlier, we are investing in additional pultrusion machine focused on pole and marine pile production, which will provide significant opportunities for the business.

Speaker #3: Further improvement is expected in the USA business as well. There are a number of projects already secured for FY27, which will result in improved revenue.

Speaker #3: As I mentioned earlier, we're investing in an additional protrusion machine focused on pole and marine pile production, which will provide significant opportunities for the business.

Speaker #3: As I said, it's currently being shipped from Australia and will be commissioned later this calendar year. We are also investing in the site over at Crescent, in Texas, with a new building and plant upgrades, which will deliver manufacturing efficiencies, further improving our margins.

Cameron Coleman: Now, as I said, it is currently being shipped from Australia and will be commissioned later this calendar year. We are also investing in the site over at Cresson in Texas with a new building and plant upgrades, which will deliver manufacturing efficiencies, further improving our margins. With this expected market growth and demand, capital investment is going to remain elevated to ensure we maintain the capacity and efficiency to service the expected long-term demand. I have called some of this out already. However, in summary, the investment in FY27 will include increased capacity and efficiency at the Pinkenba Cement Plant, new concrete batch plants, quarry network expansion, additional CFT plant capacity, domestically and internationally, and bulk haulage plant and equipment assets to service the recently secured contracts. We do see that this is a strategic deployment of capital that will deliver longer term value to our shareholders.

Speaker #3: With this expected market growth and demand, capital investment is going to remain elevated to ensure we maintain the capacity and efficiency to service the expected long-term demand.

Speaker #3: Of course, some of this is out already. However, in summary, the investment in FY27 will include increased capacity and efficiency at the Pinkenba cement plant, new concrete batch plants, quarry network expansion, additional CFT plant capacity—domestically and internationally—and bulk haulage plant and equipment assets to service the recently secured contracts.

Cameron Coleman: I have called some of this out already. However, in summary, the investment in FY27 will include increased capacity and efficiency at the Pinkenba Cement Plant, new concrete batch plants, quarry network expansion, additional CFT plant capacity, domestically and internationally, and bulk haulage plant and equipment assets to service the recently secured contracts. We do see that this is a strategic deployment of capital that will deliver longer term value to our shareholders.

Speaker #3: We do see that this is a strategic deployment of capital that will deliver longer-term value to our shareholders. We will also continue to explore acquisition opportunities that provide value to our vertically integrated business model.

Cameron Coleman: We will also continue to explore acquisition opportunities that provide value to our vertically integrated business model. In summary, FY26 has been a milestone year for Wagners, and we are extremely pleased with the momentum established across the business. The growth in the underlying construction materials segment and our CFT business has been extremely positive. Volumes have improved, market conditions have remained strong, and the excellent operating discipline demonstrated has resulted in an improvement in margins, delivering really positive earnings. We remain confident about what FY27 holds. While there will be some challenges that we have to navigate as the business grows, the outlook for Southeast Queensland is exciting. Supported by a multi-year infrastructure pipeline that we are well-placed to participate in. The Wagners business is in a really good place, and we look forward to being able to deliver continued growth that is expected.

Speaker #3: So in summary, FY26 has been a milestone year for Wagners, and we are extremely pleased with the momentum established across the business. The growth in the underlying construction materials segment and our CFT business has been extremely positive.

Speaker #3: Volumes have improved, market conditions have remained strong, and the excellent operating discipline demonstrated has resulted in an improvement in margins, delivering really positive earnings.

Speaker #3: We remain confident about what FY27 holds. While there will be some challenges that we have to navigate as the business grows, the outlook for southeast Queensland is exciting.

Cameron Coleman: We remain confident about what FY27 holds. While there will be some challenges that we have to navigate as the business grows, the outlook for Southeast Queensland is exciting. Supported by a multi-year infrastructure pipeline that we are well-placed to participate in. The Wagners business is in a really good place, and we look forward to being able to deliver continued growth that is expected.

Speaker #3: Supported by our multi-year infrastructure pipeline, we are well placed to participate in it. The Wagners business is in a really good place, and we look forward to being able to deliver the continued growth that is expected.

Speaker #3: So that concludes the presentation, or the formal part of the presentation. Thanks, everyone, for dialing in and listening. As always, we are happy to take any questions that anyone may have.

Cameron Coleman: That concludes the presentation or the formal part of the presentation. Thanks everyone for dialing in and listening, and we are, as always, happy to take any questions that anyone may have. Sam, I will hand back to you to run the Q&A, if that is all right.

Speaker #3: Sam, I'll hand back to you to run the Q&A, if that's all right?

Speaker #2: Yeah, great. Thanks, Cam, and thanks, Fergus. As a reminder, research analysts can ask questions by raising your hand on Zoom, so I can unmute your line.

Sam Wells: Yeah, great. Thanks, Cam, and thanks, Fergus. As a reminder, research analysts can ask questions via raising your hand on Zoom, so I can unmute your line, while all remaining audience can submit written questions via the Q&A function at the bottom of your screen. I would also just ask that the analysts please keep to two to three questions initially, and I can come back, should you still have outstanding questions. The first question comes from Liam Schofield at Morgans. Liam, please go ahead.

Speaker #2: While all remain in the audience, you can submit written questions via the Q&A function at the bottom of your screen. I'd also just ask that the analysts please keep to two to three questions initially, and I can come back should you still have outstanding questions.

Speaker #2: The first question comes from Liam Schofield at Morgans. Liam, please go ahead.

Speaker #4: Can you hear me there, Cam and Ferg?

Liam Schofield: Me there, Cam and Ferg.

Speaker #3: Oh, we've got you now, Liam. Yeah.

Cameron Coleman: We've got you now, Liam.

Speaker #4: Perfect. Congratulations on a great set of results. At the half year, you just talked about the production rate of poles. Can you just comment on what the full-year production rate was?

Liam Schofield: Perfect. Congratulations on a great set of results. At the H1, you just talked about the production rate of poles. Can you just sort of comment on what the full year production rate was?

Speaker #3: So we sold just over 13,000 poles, I believe, in the year, and we did consume some stock there, Liam. So I think we achieved just under sort of 12,000 for the year, which is sort of getting close to where we've set our capacity is.

Cameron Coleman: We sold just over 13,000 poles, I believe, in the year. And we did consume some stock there, Liam. So I think we achieved just under sort of 12,000 for the year. Which is sort of getting close to where we've said our capacity is. We're continually working on these machines, so there's a lot of work in the R&D space about pulling things faster. And so we're sort of confident that we can get a little bit more out of these machines, given that what we did last year. But what we have said in the past is it's 6,000 poles a machine and we've pretty much achieved that during the year.

Speaker #3: We're continually working on these machines, so there's a lot of work in the R&D space about pulling things faster. And so, we're sort of confident that we can get a little bit more out of these machines, given what we did last year.

Speaker #3: But what we have said in the past is it's 6,000 poles a machine, and we pretty much achieved that during the year.

Speaker #4: And then you've got one more machine to be commissioned in 2027, is that right?

Liam Schofield: Then you've got one more machine to be commissioned in 2027, is that right?

Speaker #3: No, we'll have two. So we've got one that's in the throes of being commissioned right now—it's installed, and I was walking around it the other day.

Cameron Coleman: We'll have two. We've got one that's in the throes of being commissioned right now. It's installed and I was walking around it the other day. We'll have another one which will come after we've finished the commissioning of the one in the US. That'll be in the first or second quarter of next calendar year.

Speaker #3: And then we'll have another one, which will come after we finish the commissioning of the one in the US. That'll be in the first or second quarter of next calendar year.

Speaker #4: Yeah. And second question, just more broadly, as we look to contrast the outlook in Southeast Queensland with other states, are you guys seeing any impact to residential or commercial demand following the budget?

Liam Schofield: Yeah. Second question, just more broadly, as we look to contrast the outlook in Southeast Queensland with other states, are you guys seeing any impact to residential or commercial demand following the budget?

Speaker #3: No, we haven't seen any impact at this point, Liam. It's widely talked about, but the level of activity for us in that space continues to grow.

Cameron Coleman: No, we haven't seen any impact at this point, Liam. It's widely talked about, but the level of activity for us in that space continues to grow. We stay very close to the civil contractors that are doing the development of the larger subdivisions around Southeast Queensland and are confident that they've got at least 12 months forward work that is not showing any sign of slowing down. That's how we see it. I know there's some contrary views out there. However, we're seeing it grow and it's really a very busy space for us.

Speaker #3: And we stay very close to the civil contractors that are doing the development of the larger subdivisions around Southeast Queensland, and are confident that they've got at least 12 months' forward work that is not showing any sign of slowing down.

Speaker #3: So that's how we see it. I know there are some contrary views out there; however, we're seeing it grow, and it's really a very busy space for us.

Speaker #4: And so, how does the rubber meet the road there in the expansion of the batch plant network? Are there areas where you're seeing demand that you're not currently fulfilling?

Liam Schofield: How does the rubber meet the road there in the expansion of the batch plant network? Is there areas where you're seeing demand that you're not currently fulfilling?

Speaker #3: Yeah, we've got a real gap right now in the southwestern area of Brisbane, where we're focused on securing a site and getting established. We've got another sort of significant gap in the Rocklea area of Brisbane, where we have secured a site, and we're currently in the final stages of plant design for that site.

Cameron Coleman: Yeah, we've got a real gap right now on the southwestern area of Brisbane where we're focused on securing a site and getting established. We've got another sort of significant gap in the Rocklea area of Brisbane where we have secured a site and we're currently in the final stages of plant design for that site. The more immediate opportunity for us is in the Caboolture region towards the north of Brisbane, where we called out in the presentation, we should have a plant operating in the next few months. It's well fully under construction. Civils are complete and the plant's currently being installed. We've got some sort of areas that we can't currently service that are very busy areas that we look forward to getting established and playing a role in.

Speaker #3: And then the more immediate opportunity for us is in the Caboolture region, towards the north of Brisbane, where we called out in the presentation we should have a plant operating in the next few months.

Cameron Coleman: The more immediate opportunity for us is in the Caboolture region towards the north of Brisbane, where we called out in the presentation, we should have a plant operating in the next few months. It's well fully under construction. Civils are complete and the plant's currently being installed. We've got some sort of areas that we can't currently service that are very busy areas that we look forward to getting established and playing a role in.

Speaker #3: It's well and fully under construction. Civils are complete and the plants currently being installed. So we've got some sort of areas that we can't currently service, that are very, very busy areas that we look forward to getting established and playing a role in.

Speaker #4: Perfect. Thanks for taking my questions.

Liam Schofield: Perfect. Thanks for taking my questions.

Speaker #2: Good. Thanks very much, Liam. Next question comes from Max Andrews at Unified. Max, please go ahead. Max, can you unmute your line and go ahead, please?

Sam Wells: Thanks very much, Liam. Next question comes from Max Andrews at Unified. Max, please go ahead. Max, can you unmute your line and go ahead, please?

Speaker #4: Can you guys hear me now?

Max Andrews: Can you guys hear me now?

Speaker #2: Yeah.

Speaker #3: Yeah, we've got you now, Max.

Sam Wells: Yeah, we have you now, Max.

Speaker #4: Let's wait. Perfect. Congrats on the results, Cam and Ferg. Thanks, Sam. So just sticking with the construction materials segment, what are your planned openings for FY27?

Max Andrews: Sweet. Perfect. Congrats on the results, Cam and Ferg. Thanks, Sam. Just sticking on the construction materials segment, just what is sort of your plan openings for FY27? How many are you sort of planning to open in FY27 and just the timing of those and, what have you seen with, I guess, with the ramp-up with your two most recent ones? Are they going quicker than expected?

Speaker #4: How many are you sort of planning to open in FY27, and just the timing of those? And what are you seeing with, I guess, with the ramp-up of your two most recent ones?

Speaker #4: Are they going quicker than expected?

Speaker #3: Yep. So, to the first part of your question, we'll only have one additional plant provide any meaningful volume this year, and that volume will all be in the second half—and that's the Caboolture plant.

Cameron Coleman: Yep. The first part of your question, we will only have one additional plant provide any meaningful volume this year, and that volume will all be in the second half. That is the Caboolture plant. We will get it operational and commissioned before Christmas, and then it should start to service the market. I would hope by sort of February, March, it is starting to make a positive contribution to the business. But it will be a drag as we get it commissioned and ramp it up and get into the market. In saying that, the second part of your question, the other two plants that we did open in FY26 are both now achieving our targeted volumes. That happened a good few months quicker than we expected. So that is at Wulkuraka and at Slacks Creek.

Speaker #3: So we'll get it operational and commissioned before Christmas, and then it should start to service the market. I would hope that by February or March, it's starting to make a positive contribution to the business.

Speaker #3: But it will be a drag as we get it commissioned and ramp it up and get into the market. In saying that, to the second part of your question, the other two plants that we did open in FY26 are both now achieving our targeted volumes, and that happened a good few months quicker than we expected.

Cameron Coleman: But it will be a drag as we get it commissioned and ramp it up and get into the market. In saying that, the second part of your question, the other two plants that we did open in FY26 are both now achieving our targeted volumes. That happened a good few months quicker than we expected. So that is at Wulkuraka and at Slacks Creek.

Speaker #3: So that's at Walkeracker and at Slacks Creek. Yes, both achieved our targeted volumes and both ramped up quicker than we expected them to, or anticipated they would.

Cameron Coleman: Yeah, both achieving our targeted volumes and both ramped up quicker than we expected them to or anticipated they would.

Speaker #4: Yep. And another one on CFT—so just the expectation around timing of those plants opening. You mentioned you have one installed now, you've got the one in the US, and potentially another one in Australia.

Max Andrews: Yep. And another one on CFT. Just the expectation around timing of those plants opening. You mentioned you have one installed now. You have the one in the US and potentially another one in Australia. Just the timing of that and, how long do you think these plants will take to come to full production and how that leads to the sales conversion?

Speaker #4: Just on the timing of that—how long do you think these plants will take to come to full production, and how does that lead to the sales conversion?

Speaker #3: Well, the first plant, as Fergus called out, is installed now, and we have begun the commissioning phase on that. So in the next six weeks, it should be making conforming product and ready to go.

Cameron Coleman: Well, the first plant is, as Fergus called out, it is installed now, and we begin the commissioning phase on that. So in the next six weeks, it should be making conforming product, and ready to go. And we see a market there for the product. So that is the first one, about six weeks off fully commissioned. The second one is in the US, and we will send the commissioning team from Toowoomba over to Texas as soon as they get the machine delivered from the port into Cresson where we are based. So we would hope we have that machine running by mid-January making conforming product. And then I would say roughly the end of March for the third machine, which is going to be installed in Toowoomba.

Speaker #3: And we see a market there for the product, so that's the first one, about six weeks off from being fully commissioned. The second one is in the US, and we will send the commissioning team from Toowoomba over to Texas as soon as they get the machine delivered from the port into the Crescent, where we're based.

Speaker #3: So, we would hope we've got that machine running by sort of mid-January, making conforming product. And then I would say roughly the end of March for the third machine, which is going to be installed in Toowoomba.

Cameron Coleman: So we would hope we have that machine running by mid-January making conforming product. And then I would say roughly the end of March for the third machine, which is going to be installed in Toowoomba.

Speaker #4: Excellent. Thanks, guys.

Max Andrews: Excellent. Thanks, guys.

Speaker #2: So, thanks very much, Max. I think that's all we have for questions today. If there are any follow-ups, please feel free to email them through either to the company or to myself, and we'll endeavor to get back to you.

Sam Wells: No, thanks very much, Max. I think that is all we have for questions today. If there are any follow-ups, please feel free to email them through either to the company or myself, and we will endeavor to get back to you. And maybe with that, I will just pass it back to you, Cam, for any closing comments.

Speaker #2: And maybe with that, I will just pass it back to you, Cam, for any closing comments.

Cameron Coleman: Yeah, thanks, Sam. As I said, we are very proud of the business. We are very proud of all the people that work in this business. Our success really hinges on the people that work at Wagners, and we have got a fantastic team out there doing a really good job. Apart from that, I did not have much else to add other than thanks very much for dialing in and hearing our presentation today. We look forward to seeing many of the investors over the next two weeks as we get around on our roadshow. So, thank you.

Speaker #3: Yeah, thanks, Sam. As I said, we're very proud of the business. We're very proud of all the people that work in this business. Our success really hinges on the people that work at Wagners, and we've got a fantastic team out there doing a really, really good job.

Speaker #3: So apart from that, I didn't have much else to add other than to say thanks very much for dialing in and hearing our presentation today. We look forward to seeing many of the investors over the next two weeks as we get around on our roadshow.

Speaker #3: So thank you.

Speaker #2: Thanks very much for joining today's Wagners full-year FY26 results call. Thank you and enjoy the rest of your day. Goodbye.

Sam Wells: Thanks very much for joining today's Wagners full year FY26 results call. Thank you, and enjoy the rest of your day. Goodbye.

Karen Brown: Goodbye

Operator: Goodbye

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Q4 2026 Wagners Holding Co Ltd Earnings Call

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