Full Year 2026 Acrow Ltd Earnings Call

August 25, 2026

Speaker #2: Thank you for standing by, and welcome to the Acrow Q2 results. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator 1: Thank you for standing by, and welcome to the Acrow FY26 results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, please press the star key followed by the number one on your telephone keypad. Thank you for joining us today. I will now hand over the call to Steven Boland, CEO; Andrew Crowther, CFO; and Matt Caporella, COO. Please go ahead.

Operator: Thank you for standing by, and welcome to the Acrow fiscal year 2026 results. All participants are in listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, please press the star key followed by the number one on your telephone keypad. Thank you for joining us today. I will now hand over the call to Steven Boland, Chief Executive Officer; Andrew Crowther, Chief Financial Officer; and Matt Caporella, Chief Operating Officer. Please go ahead.

Speaker #2: If you wish to ask a question, please press the star key followed by the number 1 on your telephone keypad. Thank you for joining us today.

Speaker #2: I will now hand over the call to Stephen Bolin, CEO; Andrew Crowther, CFO; and Matt Caporella, COO. Please go ahead.

Speaker #3: Thank you. Thanks, everybody, for joining us this morning as we run through the FY26 Acrow results. I'll also be talking about the FY27 position as we go into a new financial year.

Steven Boland: Thank you. Thanks, everybody, for joining us this morning as we run through the FY26 Acrow results and also talk about the FY27 position as we go into a new financial year. I am joined today by CFO Andrew Crowther and COO Matt Caporella. I am going to walk through the investor presentation that was released on the ASX platform this morning. Firstly, just in terms of the overview of the business, I think the first thing to, I guess, recognize is that this company was listed in April 2018, with AUD 70 million turnover and AUD 10 million EBITDA, and was effectively a commercial scaffolding business. We have now obviously developed it into a market leader in formwork hire and sales. We are the market leader in the Australian market, and we have developed a significant industrial access business over the last three to four years.

Steven Boland: Thank you. Thanks, everybody, for joining us this morning as we run through the fiscal year 2026 Acrow results and also talk about the fiscal year 2027 position as we go into a new financial year. I am joined today by Chief Financial Officer Andrew Crowther and Chief Operating Officer Matt Caporella. I am going to walk through the investor presentation that was released on the ASX platform this morning. Firstly, just in terms of the overview of the business, I think the first thing to, I guess, recognize is that this company was listed in April 2018, with AUD 70 million turnover and AUD 10 million EBITDA, and was effectively a commercial scaffolding business.

Speaker #3: And I'm joined today by CFO Andrew Crowther and COO Matt Caporella. I'm going to walk through the investor presentation that was released on the ASX platform this morning.

Speaker #3: So firstly, just in terms of the overview of the business, I think the first thing to, I guess, recognize is that this company was listed in April 2018 with a $70 million turnover and a $10 million EBITDA, and was effectively a commercial scaffolding business.

Speaker #3: We've now obviously developed it into a market leader in formwork hire and sales. We are the market leader in the Australian market, and we've developed a significant industrial access business over the last three to four years.

Steven Boland: We have now obviously developed it into a market leader in formwork hire and sales. We are the market leader in the Australian market, and we have developed a significant industrial access business over the last three to four years. The cornerstone of all of that growth has been around the competitive advantages that we have in engineering, the general quality of our people, product range, and the geographic footprint of the business. I think we can add to that now innovation. Innovation goes hand in hand with our product development and our engineering area.

Speaker #3: The cornerstone of all that growth has been our competitive advantages in engineering, the general quality of our people, our product range, and the geographic footprint of the business.

Steven Boland: The cornerstone of all of that growth has been around the competitive advantages that we have in engineering, the general quality of our people, product range, and the geographic footprint of the business. I think we can add to that now innovation. Innovation goes hand in hand with our product development and our engineering area. Matt will talk about some of the new products that we are bringing to the market later on in the presentation, and as I said, innovation is very much front and center of the Acrow way of doing business. In terms of the FY26 highlights, we have now grown a AUD 200 million industrial access business in the FY26 period, up 53% on prior corresponding period. Importantly, that growth was still about half organic and half based on the acquisitions we made at the end of the FY25 year. This is going to keep growing.

Speaker #3: I think we can add to that now: innovation. Innovation sort of goes hand in hand with our product development and our engineering area. Matt will talk about some of the new products that we're bringing to the market later on in the presentation.

Steven Boland: Matt will talk about some of the new products that we are bringing to the market later on in the presentation, and as I said, innovation is very much front and center of the Acrow way of doing business. In terms of the fiscal year 2026 highlights, we have now grown a AUD 200 million industrial access business in the fiscal year 2026 period, up 53% on prior corresponding period. Importantly, that growth was still about half organic and half based on the acquisitions we made at the end of the fiscal year 2025. This is going to keep growing.

Speaker #3: And to see that innovation is very much front and center of the Acrow way of doing business. In terms of the FY26 highlights, we've now grown a $200 million industrial access business in the FY26 period, up 53% on the prior corresponding period.

Speaker #3: Importantly, that growth was still about half organic and half based on the acquisitions we made at the end of the FY25 year. And this is going to keep growing.

Speaker #3: I'll talk later about what our forecast for revenue is in this business in '26—sorry, in '27. We've made two complementary acquisitions post 30 June.

Steven Boland: I will talk later about what our forecast for revenue is in this business in 2026, sorry, 2027. We have made two complementary acquisitions post 30 June that were part of a very successful capital raise towards the end of June. Both the Preston SuperDeck loading platform business and the OzGrip industrial access business. I will give a bit more color about that shortly. We had a great year in both our Jumpform and screens business. It is the best example of cross-selling we have in Acrow. They are both at record levels of revenue, and especially screens now, we have grown a very significant national presence off the back of what was really only a New South Wales-based business a couple of years ago. A great example of innovation is the Column Climber Jumpform project we have got on the Gold Coast working with Meriton.

Speaker #3: That were part of a very successful capital raise towards the end of June, both the Preston Superdeck learning platform business and the Ozgrove industrial access business.

Speaker #3: I'll give a bit more color about that shortly. We had a great year in both our jump form and screens business. It's the best example of cross-selling.

Speaker #3: We have in Acrow. They're both at record levels of revenue. And especially Screens now, we've grown a very significant national presence off the back of what was really only a New South Wales-based business a couple of years ago.

Speaker #3: A great example of innovation is the column climber jump form project we've got on the Gold Coast, working with Meriton. It is the first of its kind in the country.

Steven Boland: It is the first of its kind in the country. We will talk more about that project shortly. But a great indication, again, of engineering excellence and the innovation within Acrow. Probably the most important thing, I think, in this presentation in terms of the forward outlook for Acrow is the H2 formwork revenue that we had for FY2026. Again, I am going to go through more detail, but in relation to that, up 26% on the H1. But it is the most important thing, I think, in looking forward to what this is a significant uplift in result is that we are not just expecting, but will see in the FY2027 year. Hand in hand with that is the equipment. Hire equipment pipeline is up by another 33% to AUD 290 million. In terms of secured hire contracts, that number was flat.

Speaker #3: We'll talk more about that project shortly, but it's a great indication again of engineering excellence and the innovation within Acrow. Probably the most important thing, I think, in this presentation in terms of the forward outlook for Acrow is the second half formwork revenue that we had for FY26.

Speaker #3: Again, I'm going to go through in more detail, but in relation to that, up 26% on the first half. But the most important thing, I think, in looking forward to what is a significant uplift in result, is that we are not just expecting, but will see, in the FY27 year.

Speaker #3: Hand in hand with that is the equipment; the hire equipment pipeline is up by another 33% to $290 million. In terms of secured hire contracts, that number was flat.

Speaker #3: There is a timing issue there, especially with the size of the jump form and screen contracts that we win in this regard now. A lot of the screen contracts that we win in one year—you don't see the revenue until the following year.

Steven Boland: There is a timing issue there, especially with the size of the Jumpform and screen contracts that we win in this regard now. A lot of the screen contracts that we win in one year, you do not see the revenue till the following year. They are awarded sometimes 6 to 12 months in advance of the job starting. So there can be a bit of a lag effect in there. Certainly, in terms of the revenue, the work in screens that we won in FY2025, we saw the revenue in FY2026, and we will show that a little bit later on. Yes. So on to the next page around safety. Well, it has to be a really strong emphasis. We have increased the number of hours worked in the business by 60% from FY2025 to FY2026.

Speaker #3: They are awarded sometimes six to twelve months in advance of the job starting, so there can be a bit of a lag effect in there.

Speaker #3: Certainly, in terms of the revenue, the work in screens that we won in FY25, we saw the revenue in FY26. And we'll show that a little bit later on.

Speaker #3: Yes, so on to the next page around safety. There still has to be a really strong emphasis. I mean, we've increased the number of hours worked in the business by 60% from FY25 to FY26.

Speaker #3: In some ways, now we have well over 1,000 industrial access scaffolders working for the company, so I guess our risk profile is higher than it was when we were more purely a formwork hire and sales business.

Steven Boland: In some weeks now, we have well over 1,000 industrial access scaffolders working for the company. So I guess our risk profile is higher than it was when we were more purely a formwork hire and sales business. So to go through that whole year with only two lost time injuries, I think is still a good result. Albeit, as I say, you do not want any. You want that number to be zero. The recordable injuries number is relevant, I think, in terms of our ability now to capture and act on injuries before they become LTIs. But it is going to continue to be, has to be a strong focus. We have got a really good national safety manager, who started with the business about 12 months ago, who is now getting consistency across all of our depots.

Speaker #3: So to go through that whole year with only two lost time injuries, I think it's still a good result. Albeit, as I've said, you don't want any.

Speaker #3: You want that number to be zero. The recordable injuries number is relevant, I think, in terms of our ability now to capture and act on injuries before they become LTIs.

Speaker #3: But it's going to continue to be—it has to be—a strong focus. We've got a really good National Safety Manager, who started with the business about 12 months ago, who's now getting consistency across all of our depots.

Speaker #3: In terms of the financial metrics, it's clearly good to see the revenue go up by 27%, but the EBITDA was flat. That's relevant in terms of increased profitability from the industrial sector of the business and reduced profitability in the year from the construction part.

Steven Boland: In terms of the financial metrics, clearly good to see the revenue go up by 27%, but the EBITDA was flat. That is relevant in terms of an increased profitability from the industrial sector of the business and a reduced profitability in the year of the construction part. Basically AUD 5 million less in construction and AUD 5 million more in industrial. Importantly, over a third of the EBITDA for the business for the year was generated in the last quarter. Last quarter was the most profitable quarter in the company's history, and that is flowing into the new year. EBIT and NPAT were down based on, obviously, a flat EBITDA with more finance and more depreciation costs. That will stabilize itself now into the new year. EPS was also down in line with the NPAT reduction.

Speaker #3: So basically, $5 million less in Construction, and $5 million more in Industrial. Importantly, over a third of the EBITDA for the business for the year was generated in the last quarter.

Speaker #3: Last quarter was the most profitable quarter in the company's history, and that is flowing into the new year. EBIT and NPAT were down due to, obviously, a flat EBITDA with more finance and more depreciation costs.

Speaker #3: That will stabilize itself now into the new year. And EPS was also down in line with the NPAT reduction. I'm going to talk about this again later on when we're talking about our guidance.

Steven Boland: I am going to talk about this again later on when we are talking about our guidance. We have not given specific guidance for NPAT and EPS at the moment, whilst we have for revenue and EBITDA. But we are expecting our NPAT to be up over 50% this year, and we are expecting our EPS, despite all the additional shares on issue after the CapEx raise, to be up by over 20%. In line with our new dividend policy that we outlined a couple of months ago, the dividend for the final H2 of 1.42 cents is actually at the high end of the new guidance that we have given. It is something that can be tracked more accurately now, and it is fair to say it is a reset for Acrow.

Speaker #3: We haven't given specific guidance for NPAT and EPS at the moment, whilst we have for revenue and EBITDA. But we are expecting our NPAT to be up over 50% this year.

Speaker #3: And we're expecting our EPS, despite all the additional shares on issue after the cap raise, to be up by over 20%. In line with our new dividend policy that we outlined a couple of months ago, the dividend for the final half of 1.42 cents is actually at the high end of the new guidance that we've given.

Speaker #3: And it is—look, it is something that can be tracked more accurately now. And it is fair to say it's a reset for Acrow, for a company that's growing as much as we are and has uses of capital that can return better than 40% for every dollar we spend.

Steven Boland: For a company that is growing as much as we are and has uses of capital that can return better than 40% for every AUD we spend, we believe that we have probably been overpaying in dividends for a few years, and this is a reset, and we do not apologize for that. I am going through the operational update, divisional breakdown. I think a couple of things that I want to point out here. Firstly, obviously, industrial access, AUD 200 million. We have talked about that. The margins, whilst you are seeing an EBITDA margin of 24% versus 30% in the previous year, industrial division now contributes 60% of our revenue rather than 50%. I think, look, any business with as much revenue as we have got coming out of that sector now that can still maintain EBITDA margins in the mid to high 20s has got an extremely good margin profile.

Speaker #3: We believe that we probably have been overpaying in dividends for a few years, and this is a reset. We don't apologise for that. Now, I'm going through the operational update and the visual breakdown.

Speaker #3: I think there are a couple of things that I want to point out here. Firstly, obviously, industrial access—$200 million, we've talked about that. The margins, whilst you're seeing an EBITDA margin of 24% versus 34%.

Steven Boland: Firstly, obviously, industrial access, AUD 200 million. We have talked about that. The margins, whilst you are seeing an EBITDA margin of 24% versus 30% in the previous year, industrial division now contributes 60% of our revenue rather than 50%. I think, look, any business with as much revenue as we have got coming out of that sector now that can still maintain EBITDA margins in the mid to high 20s has got an extremely good margin profile.

Speaker #3: Sorry, 30% in the previous year. The Industrial division now contributes 60% of our revenue, rather than 50%. I think, look, any business with as much revenue as we've got coming out of that sector now that can still maintain EBITDA margins in the mid to high 20s has got an extremely good margin profile.

Speaker #3: We're looking at the moment, and in the new financial year, even with a stronger contribution again from Industrial, we think our EBITDA margins will probably be more like 26 to 27% this year.

Steven Boland: We are looking at the moment in the new financial year, even with a stronger contribution again of industrial, we think our EBITDA margins will probably be more like 26% to 27% this year. In terms of the construction division, pleasing to say, and we will go into more detail on the next page, which I. In terms of, again, the margin profile, if you look at the chart at the bottom, we had a greater contribution of sale of product revenue of the total revenue this year compared to last year than we did in hire. That just shifts the margin around. This is not a reduced margin overall. This is just, again, a shift between hire and sales revenue. To page 12, which is the revenue by state.

Speaker #3: In terms of Construction division, so pleasing to say—and we'll go into more detail on the next page, which I... In terms of the, again, the margin profile, if you look at the chart at the bottom, we had a greater contribution of sale of product revenue, of the total revenue, this year compared to last year than we did in Hire.

Speaker #3: And that just shifts the margin around. So this is not a reduced margin overall. This is just, again, a shift between hire and sales revenue.

Speaker #3: So then to page 12, which is the revenue by state. So I think this is probably, I think, almost the most important page of this presentation in terms of the future outlook.

Steven Boland: As I said, I think this is probably, I think, almost the most important page of this presentation in terms of future outlook. Firstly, I will draw your attention to the national formwork revenue, where you can see that is the split we have got for FY26 between H1 and H2. The H2 revenue of AUD 66.7 million is the highest revenue we have had in any half in the history of the company, and up significantly, obviously, from the AUD 53 million we had in the H1. Most of that growth came in the last quarter. Again, really pleasingly, that growth we saw in the last quarter is finding its way into the new financial year, which we will talk about in more detail later on when we talk about guidance. A couple of other things in here.

Steven Boland: As I said, I think this is probably, I think, almost the most important page of this presentation in terms of future outlook. Firstly, I will draw your attention to the national formwork revenue, where you can see that is the split we have got for fiscal year 2026 between H1 and H2. The H2 revenue of AUD 66.7 million is the highest revenue we have had in any half in the history of the company, and up significantly, obviously, from the AUD 53 million we had in the H1. Most of that growth came in the last quarter. Again, really pleasingly, that growth we saw in the last quarter is finding its way into the new financial year, which we will talk about in more detail later on when we talk about guidance. A couple of other things in here.

Speaker #3: So, firstly, I'll draw your attention to the national formwork revenue, where you can see that's a split we've got for FY26 between the first half and the second half.

Speaker #3: So, the second-half revenue was $66.7 million. It's the highest revenue we've had in any half in the history of the company, and up significantly, obviously, from the $53 million we had in the first half.

Speaker #3: And most of that growth came in the last quarter. So you can see that, and again, really pleasingly, that growth we saw in the last quarter is finding its way into the new financial year, which we'll talk about in more detail later on when we talk about guidance.

Speaker #3: A couple of other things in here. Clearly, New South Wales, South Australia, and Western Australia have had very good years. This is indicative of what happens when the market turns in our favour.

Steven Boland: Clearly, New South Wales, South Australia, and Western Australia have had very good years. This is indicative of what happens when the market turns in our favor. You cannot create work. We are very jealously proud of our market share in each state. Despite the reduction in revenue in Queensland, we have not lost market share. It is purely indicative of the work in that particular market at any given time. I just also want to, I guess, reiterate here, we had growth over a three-year period in formwork revenue. You can see from 2021 through to 2024, our national formwork revenue went from AUD 60 million to AUD 121 million. We doubled it over a three-year period. Our EBITDA over those three years went from AUD 20 million to over AUD 60 million in three years. That was all off the back of the last surge of activity in construction activity in the country.

Speaker #3: I mean, we don't—you can't create work. We are very jealously proud of our market share in each state. Despite the reduction in revenue in Queensland, we haven't lost market share.

Speaker #3: It's purely indicative of the way that work— the work in that particular market at any given time. I think I just also want to, I guess, reiterate here: we saw that we had growth over a three-year period in formwork revenue.

Steven Boland: I just also want to, I guess, reiterate here, we had growth over a three-year period in formwork revenue. You can see from 2021 through to 2024, our national formwork revenue went from AUD 60 million to AUD 121 million. We doubled it over a three-year period. Our EBITDA over those three years went from AUD 20 million to over AUD 60 million in three years. That was all off the back of the last surge of activity in construction activity in the country.

Speaker #3: We can see that from '21 through to '24, our national formwork revenue went from $60 million to $121 million. We doubled it over a three-year period.

Speaker #3: Our EBITDA over those three years went from $20 million to over $60 million in three years. That was all off the back of the last surge of activity in construction activity in the country.

Speaker #3: That surge in activity has basically stopped for the last three years. Our revenue has stagnated. However, as I said, you can see in that last half how it's really kicked back in.

Steven Boland: That surge in activity has basically stopped for the last three years. Our revenue has stagnated. As I said, you can see in that last half how it has really kicked back in. That is really why three years ago, we decided to invest so heavily in our industrial access business, because we did not want to be this one-trick show based on civil infrastructure and general construction activity cycles. You can see again, a great H2 result. It is going into this year already. If I look at Queensland more specifically, Queensland is coming off of the lowest six months they have had in three years to get to increasing for four. The prime example of cross-selling. In terms of our screens business, we are definitely the national market leader with over 100 projects going at any given time.

Speaker #3: That's really why, three years ago, we decided to invest so heavily in our industrial access business, because we didn't want to be this one-trip show based on civil infrastructure and general construction activity cycles.

Speaker #3: So you can see, again, a great second half result. It's going into the first—it's going into this year already. And if I look at Queensland more specifically, Queensland's coming off the lowest six months they've had in three years.

Speaker #3: To get to increasing to four, the prime example of cross-selling. In terms of our screens business, we are definitely the national market leader, with over 100 projects going at any given time.

Speaker #3: So, earlier I mentioned how the work that you win in one year in screens, you really see it the next year. So you can see in FY25, the revenue—whilst we won significant, we won only $25 million worth of work in FY25.

Steven Boland: Earlier I mentioned how the work that you win in one year in screens, you really see it the next year. You can see in FY25, the revenue, whilst we won only AUD 25 million worth of work in FY25, the revenue was only AUD 16 million in FY25. That grew to AUD 23.5 million in FY26. So we have got a great result in screens. We have grown a very strong presence now in Western Australia, which we have done primarily off the back of our growth in Jumpform. You can see that WA continues to be the biggest state for us in terms of Jumpform, but you can also see that we have got 10 Jumpform jobs in WA. We have also got 10 screen jobs in WA.

Steven Boland: Earlier I mentioned how the work that you win in one year in screens, you really see it the next year. You can see in fiscal year 2025, the revenue, whilst we won only AUD 25 million worth of work in fiscal year 2025, the revenue was only AUD 16 million in fiscal year 2025. That grew to AUD 23.5 million in fiscal year 2026. So we have got a great result in screens. We have grown a very strong presence now in Western Australia, which we have done primarily off the back of our growth in Jumpform. You can see that WA continues to be the biggest state for us in terms of Jumpform, but you can also see that we have got 10 Jumpform jobs in WA. We have also got 10 screen jobs in WA.

Speaker #3: The revenue was only $16 million in FY25. At the end, that grew to $23.5 million in FY26. So we've got a great result in screens.

Speaker #3: We've grown a very strong presence now in Western Australia, which we've done primarily off the back of our growth in jump forms. You can see that WA continues to be the biggest state for us in terms of jump forms.

Speaker #3: But you can also see that we've got 10 jump form jobs in WA. We've also got 10 screen jobs in WA. So it's fair to say at the moment that almost on every job where we're winning jump forms across the country, we're providing the screens as well.

Steven Boland: So it is fair to say at the moment that almost on every job that we are winning Jumpform across the country, we are providing the screens as well. Project examples, Americana Cypress contract. This is the Column Climber, first of its kind in the country. Again, a great example of innovation and engineering excellence. The job is now going at full tote. So how many columns have we got in this project again, Matt?

Speaker #3: Project examples: the Merritt and Cypress contract. This is the column climber, first of its kind in the country. Again, a great example of innovation and engineering excellence.

Speaker #3: The job is now going at full tilt, toed odds. So, how many cores have we got in this project again?

Speaker #2: There's 16 cores. Yeah.

Matt Caporella: There is 16 columns.

Steven Boland: 16 columns.

Matt Caporella: Yeah.

Speaker #3: Okay.

Steven Boland: Okay. We have inserted a time lapse video into here. I will not show that now, but you can access that at your leisure to show you how that is going. I think we have now jumped how many

Speaker #2: We have inserted a time-lapse video into here. I won't show that now, but you can access it at your leisure to see how this is going.

Speaker #2: I mean, I think we've now jumped—how many?

Matt Caporella: The Column Climbers have done 10 jumps.

Speaker #3: The column climbers are down 10 jumps.

Speaker #2: Right. Okay. So, all 16 columns have done 10 jumps. Working extremely well. Very happy customer. This is industry-changing. Move on to industrial access.

Steven Boland: Right. Okay. So all 16 columns have done 10 jumps, working extremely well, very happy customer. This is industry changing. Moving on to industrial access. Look, very strong EBITDA margin for this type of business, making 18% on what is primarily a labor-orientated business. I would suggest if you want to double check the strength of the Acrow industrial business, if you check against the peer group, so there are other public industrial companies, I do not think anybody is making 18% margins out of their business. So this is a very strong revenue and margin profile. In terms of the labor component of this business, the average labor margin is around 22%. However, the biggest contracts that we have got, which now contributed more than 43% in what they generated this year, the average labor margin for those biggest contracts is around 15.

Speaker #2: So, look, very strong EBITDA margin for this type of business, making 18% onwards, primarily a labour-orientated business. If you—I would suggest, if you want to double-check the strength of the Acrow industrial business, you check against the peer groups that are other public industrial companies.

Speaker #2: I don't think anybody's making 18% margins out of their business, so this is a very strong revenue and margin profile. In terms of the labour component of this business, the average labour margin is around 22%.

Speaker #2: However, the biggest contracts that we've got, which now contribute more than—up to 43% of what they generated this year—the average labour margin for those biggest contracts is around 15%.

Speaker #2: Now, we'll take 15 every day of the week. If it's a clean 15, these are not lump sum contracts. These are due and charged.

Steven Boland: Now, we will take 15 every day of the week if it is a clean 15. These are not lump sum contracts. These are do and charge. That is a very strong margin. However, they are becoming a bigger component of the total revenue, and they will again this year as a couple of them are growing significantly. So that might reduce the labor margin to more like 20 across the group average. Some of the specific projects in this group. Look, you can see here, we are front and center on some of the most important national and critical infrastructure projects and industrial projects. Our industrial business you can sort of categorize into 4 different areas: long-term maintenance contracts, construction style industrial projects, ad hoc maintenance packages, and shutdowns. So each of these projects are covered by some of those. For example, Snowy Hydro is a construction style industrial project.

Speaker #2: That's a very strong margin. However, they are becoming a bigger component of total revenue, and they will again this year, as a couple of them are growing significantly.

Speaker #2: So that might reduce the labour margin to more like 20 across the group average. Some of the specific projects in this group—so, look, you can see here we're front and centre on some of the most important national and critical infrastructure projects and industrial projects.

Steven Boland: Some of the specific projects in this group. Look, you can see here, we are front and center on some of the most important national and critical infrastructure projects and industrial projects. Our industrial business you can sort of categorize into 4 different areas: long-term maintenance contracts, construction style industrial projects, ad hoc maintenance packages, and shutdowns. So each of these projects are covered by some of those. For example, Snowy Hydro is a construction style industrial project.

Speaker #2: Our industrial business, you can sort of categorize into four different areas: long-term maintenance contracts, construction-style industrial projects, ad hoc maintenance packages, and shutdowns. So, each of these projects are covered by some of those.

Speaker #2: So, for example, Snowy Hydro is a construction-style industrial project. Ampol Kent is a construction-style industrial project. So is Purtuoman. BMA and Glencore are long-term maintenance contracts.

Steven Boland: Ampol Kent is a construction style industrial project, so is Perdaman. BMA and Glencore are long-term maintenance contracts. Sydney Harbour Bridge are basically ad hoc maintenance packages. But they are all indications of the sort of work that we do in these areas. I am going to go into some more detail about a couple of these later on. On the next page, we give an example of a shutdown project. So this is the first one of this nature where we were the principal contractor. We took principal contractor responsibilities, and then over a 6-week period, we mobilized up to 98 personnel, 14 different trade groups. You can see in this number 37,700 man hours. It was a massive undertaking, and we pulled it off incredibly successfully. Very happy client. Just under AUD 8 million in revenue.

Speaker #2: Sydney Harbour Bridge is basically ad hoc maintenance packages, but they're all indications of the sort of work that we do in these areas. I'm going to go into some more detail about a couple of these later on.

Speaker #2: On the next page, we give an example of a shutdown project. So, this is the first one of this nature where we were the principal contractor.

Speaker #2: We took principal contractor responsibilities, and then, over a six-week period, we mobilized up to 98 personnel across 14 different trade groups. You can see in this number: 37,700 man-hours.

Speaker #2: It was a massive undertaking, and we pulled it off incredibly successfully. Very happy client. Just under $8 million in revenue—a good contract for us in terms of margins.

Steven Boland: A good contract for us in terms of margins and an indication that we can pull this sort of project off, and we will be looking to do more of this sort of project into the future. Effectively, on this project, the cooling tower for the power station needed significant rectification work done to it. We came up with a plan to be able to support that work. Again, very happy customer and successfully completed. Over to you, Andrew, on the financials.

Speaker #2: And it's an indication that we can pull this sort of project off, and we'll be looking to do more of this type of project into the future.

Speaker #2: Effectively, on this project, the cooling tower for the power station needed significant rectification work done to it. We came up with a plan to be able to support that work and, again, a very happy customer.

Speaker #2: And successfully completed. Over to you, Andrew, on the financials.

Speaker #1: Great, thanks, Steve. And hi, everyone on the call. As Steve's already said, our revenue was up 27%, but we had relatively flat EBITDA.

Andrew Crowther: Great. Thanks, Steve, and hi, everyone on the call. As Steve has already said, our revenue was up 27%, but we had a relatively flat EBITDA. As discussed, the predominant reason for that is the revenue split between construction and industrial from 50/50 to 60/40 industrial. With that came the lower EBITDA margin. Essentially that was brought around through Queensland formwork delay, and other sort of increase in certain costs. One of the costs you will see in the P&L there was a AUD 1.5 million increase in bad debts during the year. That does not mean our debtors are out of control. There were quite a few things bubbling away, and the decision was made to provide for these in the H2. That flat EBITDA then translated to an underlying profit after tax of a 20% decline.

Speaker #1: And as discussed, the predominant reason for that is the revenue split between construction and industrial shifting from 50/50 to 60/40 industrial. And with that came the lower EBITDA margin.

Speaker #1: So essentially, that was brought around through Queensland formwork delay and other sort of increasing certain costs. Now, one of the costs you'll see in the P&L there was a $1.5 million increase in bad debts during the year.

Speaker #1: That doesn't mean our debtors are out of control. There were quite a few things bubbling away, and the decision was made to provide for these in this second half.

Speaker #1: Now, that flat EBITDA then translated to an underlying profit after tax of a 20% decline, from $34.5 million down to $27.5 million. Now, the reason between that flat EBITDA and the lower underlying NPAT is essentially increases in depreciation and interest that were brought about through increased capex and working capital.

Andrew Crowther: From 34.5 down to 27.5. The reason between that flat EBITDA and the lower underlying NPAT is essentially increases in depreciation and interest that were brought about through increased CapEx and working capital. Basically, we have been preparing for a strategic expansion for a while now. I suppose construction, as Steve has already talked about, just was not what we expected in 2026, but that is all basically been delayed and moving into 2027. Moving on to that depreciation. Depreciation was higher. You will see from 2024 to 2029, and that was basically just our average PP&E has increased from 189 to 226. Our average depreciation rates were essentially the same at around 8%. It is just an increase in PP&E. Interest, likewise, our average debt went from 95 to 144, and our lease liability also increased.

Speaker #1: And basically, we've been preparing for a strategic expansion for a while now. And I suppose construction, as Steve's already talked about, just wasn't what we expected in '26.

Speaker #1: But that's all basically been delayed and moving into '27. So, moving on to depreciation. Depreciation was higher. You'll see from '24 to '29.

Speaker #1: And that was basically just our average PP&E has increased from 189 to 226. Our average depreciation rates are essentially the same, at around 8%.

Speaker #1: It's just an increase in PP&E. Interest, likewise—our average debt went from $95 million to $144 million. And our lease liability also increased, and therefore our interest increased by close to $3 million.

Andrew Crowther: Therefore, our interest increased by close to AUD 3 million. Our tax actually increased. You will see that our statutory rate of tax increased from 33% to 38%, or the tax itself went from 11.5 down to 10.8. The reason for that increase in statutory tax, there were two adjustments for essentially previous period income tax expense of about 500,000 each. That AUD 1 million translates to about 3.5%. Our statutory tax rate will revert back to around 33% next year. That gets us down to an underlying of AUD 27.5 million, and our underlying earnings per share, you will see as well is 8.86 down 20%. That EPS reduction is purely from the underlying NPAT because our weighted average shares basically stayed relatively flat. Obviously, it increased 32% after share raises at the end of June and in July. For the year, it was relatively flat.

Speaker #1: Our tax actually increased. You'll see that our statutory rate of tax increased from 33% to 38%, or the tax itself went from $11.5 down to $10.8.

Speaker #1: The reason for that increase in statutory tax—there were two adjustments for essentially previous-period income tax expense of about $500,000 each. So that $1 million translates to about 3.5%.

Speaker #1: Our statutory tax rate will revert back to around 33% next year. So, that gets us down to an underlying of $27.5 million. And our underlying earnings per share, you'll see as well, is 8.86, down 20%.

Speaker #1: Now, that EPS reduction is purely from the underlying NTAT, because our weighted average shares basically stayed relatively flat. Obviously, it increased 32% after share raises at the end of June and in July.

Speaker #1: But for the year, it was relatively flat. Now, getting between underlying NTAT and NTAT reported, NTAT reported likewise reduced by about 24%, down to 17.8.

Andrew Crowther: Now, getting between underlying NPAT and NPAT reported. NPAT reported likewise reduced by about 24% down to AUD 17.8 million. The difference between those two essentially were all our growth initiatives. Significant items of AUD 4.5 million. That was predominantly on restructuring and integration expenses as well as depot moves for future growth, plus some advisor fees. Amortization of intangibles are the same as previous. We have had to value our customer relations and certain brand items for some of our acquisitions, and that will amortize over 10 to 12 years. As Steven's already talked about, our dividend, we announced a dividend of AUD 1.42 final. That brings us to AUD 3.42. The way we calculated that dividend was on the H2. Our underlying NPAT on the H2 was about AUD 14.7 million, and basically, we are paying out the high end of our new policy of 50% of that.

Speaker #1: And the difference between those two, essentially, were all our growth initiatives. So, significant items of $4.5 million—that was predominantly on restructuring and integration expenses, as well as depot moves for future growth.

Speaker #1: Plus some adviser fees. Amortisation of intangibles is the same as previously. We've had to value our customer relations and certain brand items for some of our acquisitions.

Speaker #1: And that will amortise over 10 to 12 years. And as Steve's already talked about, our dividend—we announced a dividend of $1.42 final, that brings us to $3.42.

Speaker #1: The way we calculate that dividend was on the second half, so our underlying NTAT on the second half was about $14.7 million.

Speaker #1: And that basically, we're paying out at the high end of our new policy of 50% of that. Now, moving over to the balance sheet. The FY26 balance sheet includes around $31.5 million that we received in the first tranche of our institutional placement.

Andrew Crowther: Now, moving over to the balance sheet. The FY26 balance sheet includes around AUD 31.5 million that we received in the first tranche of our institutional placement. The second tranche and the SPP came in after cut-off date. Net debt, including that AUD 31.5 million, was up AUD 9.8 million to AUD 133 million, and that increases predominantly from all of our growth initiatives. We will get onto that in a moment in the next slide. Net debt EBITDA increased from 1.8x to 1.9x at 30 June. Our headroom essentially stayed the same at close to AUD 40 million as last time. Total assets were up by AUD 76.7 million. That was from CapEx. We had AUD 36 million of CapEx, AUD 31 million of growth. Plus, we had quite a lot of probably record sales in May and June. Likewise, I will get onto that.

Andrew Crowther: Now, moving over to the balance sheet. The fiscal year 2026 balance sheet includes around AUD 31.5 million that we received in the first tranche of our institutional placement. The second tranche and the SPP came in after cut-off date. Net debt, including that AUD 31.5 million, was up AUD 9.8 million to AUD 133 million, and that increases predominantly from all of our growth initiatives. We will get onto that in a moment in the next slide. Net debt EBITDA increased from 1.8x to 1.9x at 30 June. Our headroom essentially stayed the same at close to AUD 40 million as last time. Total assets were up by AUD 76.7 million. That was from CapEx. We had AUD 36 million of CapEx, AUD 31 million of growth. Plus, we had quite a lot of probably record sales in May and June. Likewise, I will get onto that.

Speaker #1: The second tranche and the SPP came in after year-end. So net debt, including that $31.5 million, was up $9.8 million to $133 million. And that increase is predominantly from all of our growth initiatives.

Speaker #1: And we'll get onto that in a moment in the next slide. Net debt to EBITDA increased from 1.8 to 1.9 at 30 June.

Speaker #1: But our headroom essentially stayed the same at close to $40 million as last time. Total assets were up by $76.7 million. That was from capex.

Speaker #1: We had $36 million for capex, $31 million of growth, plus we had quite a lot of, probably, record sales in May and June.

Speaker #1: And likewise, I'll get onto that next slide. Well, our average sales for May and June were about 38 per month. For the balance of the previous year, it was about 26 per month.

Andrew Crowther: Well, our average sales for May and June were about 38 per month. For the balance of the previous year, it was about 26 per month. Our receivables basically had an increase of AUD 20 million for the end of the year. That basically was one of the bigger reasons for our assets up. Working capital sales, almost the same as last year, 26.5%. As previously said, that was impacted by the May and June invoicing as well. Now, cash conversion, likewise, almost identical to last year, 72% versus last year's 71%. That variance, if we wanted to get to 100%, it is very difficult for a business like ours because we are in growth mode, particularly in our industrial access division. As I said before, our working capital or particularly our debt has increased by AUD 20 million. That is about 20%.

Speaker #1: So, our receivables basically had an increase of $20 million for the end of the year. So that basically was one of the bigger reasons for our assets being up.

Speaker #1: Working capital to sales is almost the same as last year, 26.5%, as previously mentioned. That was impacted by the May and June invoicing as well.

Speaker #1: Now, cash conversion—likewise, almost identical to last year: 72% versus last year’s 71%. Now, that variance—if we wanted to get to 100%, it’s very difficult for a business like ours because we’re in growth mode, particularly in our Industrial Access division.

Speaker #1: So, as I said before, our working capital, or particularly our debt, has increased by $20 million. That's about 20%. So that's sort of where our impact on our cash conversion is.

Andrew Crowther: That is where our impact on our cash conversion is. Now on our pro forma column on the right side, what that takes into account is the second tranche of institutional placement plus the SPP. It is about AUD 51.2 million, less the acquisition costs on Preston SuperDeck and what will be OzGrip, which is AUD 47.8 million. We have also taken into account what we expect around AUD 13 million of contribution from the acquisitions. We have different views of that will probably be higher. With that pro forma, we would be roughly the same debt and debt headroom, but our net debt EBITDA would be about 1.6x. As we said in the raises, we are still forecasting that our net debt EBITDA at the end of this year or 2027 will be around 1.3x. We are making good headway.

Speaker #1: Now, I want to pro forma on our pro forma column on the right side. What that takes into account is the second tranche of institutional placement plus the SPP.

Speaker #1: So, it's about $51.2 million, plus or minus the acquisition costs on Prestons and what will be Ausgrid, which is $47.8 million. Now, we've also taken into account what we expect to be around $13 million of contribution from the acquisitions.

Speaker #1: We have different views of that. It will probably be higher. But with that pro forma, we would be at roughly the same debt and debt headroom, but our net debt to EBITDA would be about 1.6.

Speaker #1: Now, as we said in the raises, we're still forecasting that our net debt to EBITDA at the end of this year, or '27, will be around 1.3.

Speaker #1: So we're making good headway. Now, on the next slide, this is our net debt bridge that we always have. I won't dwell on this, but what you'll see is our debt—this is the debt increase—from $123 million to $133 million, so around $9 million.

Andrew Crowther: Now, over to the next slide, this is our net debt bridge that we always have. I will not dwell on this, but what you will see is our debt. This is the debt increase from AUD 123 million to AUD 133 million, so around AUD 9 million. The vast majority of the outflows are investment related or future growth of about AUD 62 million. Dividends, you will see, was AUD 14 million for the year. It is worth a call-out there. That will start reducing under our new dividend policy. As Steve said, it is relatively clear that we will probably overpay dividends with the amount of growth that we were doing. Now, over to the next slide, capital expenditure spend. You can see from this that our investment in CapEx this year were very much into profitable growth areas, in particular Jumpform and screens, which by far have been record levels of revenue for the year.

Speaker #1: The vast majority of the outflows are investment-related or for future growth, of about $62 million. Dividends, you'll see, were $14 million for the year. It was a callout there.

Speaker #1: That will start reducing under our new dividend policy. And as Steve said, it's relatively clear that we were probably overpaying dividends with the amount of growth that we were doing.

Andrew Crowther: That will start reducing under our new dividend policy. As Steve said, it is relatively clear that we will probably overpay dividends with the amount of growth that we were doing. Now, over to the next slide, capital expenditure spend. You can see from this that our investment in CapEx this year were very much into profitable growth areas, in particular Jumpform and screens, which by far have been record levels of revenue for the year.

Speaker #1: Now, over to the next slide, capital expenditure spend. You can see from this that our investment in capex this year was very much in the profitable growth areas, in particular Jump, Bomb, and Screens, which by far have seen record levels of revenue for the year.

Speaker #1: And looking forward, these are very much strategic opportunities for the future years. So this was money very well spent. And on top of that, you'll see that the union ring and lay was $1.4 million.

Andrew Crowther: Looking forward, these are very much strategic opportunities for the future years. So this was money very well spent. On top of that, you will see that the Uni-Ring layer was AUD 1.4 million. Most of that went into our organic growth areas, being South Australia, New South Wales, and North Queensland. But we probably under-invested in other areas of formwork, which will be adjusted in the following year. You see FY27, our CapEx budget and forecast at this stage is AUD 30 million. However, opportunities may show themselves with extremely high returns. We may make decisions, but our budget at the moment is AUD 30 million. Over to you, Steve.

Andrew Crowther: Looking forward, these are very much strategic opportunities for the future years. So this was money very well spent. On top of that, you will see that the Uni-Ring layer was AUD 1.4 million. Most of that went into our organic growth areas, being South Australia, New South Wales, and North Queensland. But we probably under-invested in other areas of formwork, which will be adjusted in the following year. You see fiscal year 2027, our CapEx budget and forecast at this stage is AUD 30 million. However, opportunities may show themselves with extremely high returns. We may make decisions, but our budget at the moment is AUD 30 million. Over to you, Steve.

Speaker #1: Most of that went into our organic growth areas, being South Australia, New South Wales, and North Queensland. But we've probably underinvested in other areas of formwork, which will be adjusted in the following year.

Speaker #1: You see, for FY27 our capex budget and forecast at this stage is $30 million. However, opportunities may present themselves with extremely high returns. We may make decisions accordingly.

Speaker #1: But our budget at the moment is $30 million. Over to you, Steve.

Speaker #2: Thanks. So sorry, folks, we've just been followed by one of the participants of the call dropping out every now and then for 10 seconds or so.

Steven Boland: Thanks. Sorry, folks, we have just been told by one of the participants that the call sort of drops out every now and then for 10 seconds or so. So I apologize for that. Not sure why that is happening. But we will do the best we can taking that into account. So, if there is anything that needs clarification through the questions process, please make sure that you ask those questions. Moving on to growth opportunities. Firstly, we have completed the acquisition of the SuperDeck business effective on 3 July. It has been already well integrated into Acrow, works in conjunction with our screens and Jumpform business. It is the market leader in this area in the country. Excellent early results. We have already obviously had the July result, strong forecast for the next few months, performing at the levels that we expect it to.

Speaker #2: So I apologize for that. Not sure why that's happening, but yeah, we'll do the best we can, taking that into account. So if anything is new, or if you need clarification through the questions process, please make sure that you ask those questions.

Speaker #2: Moving on to growth opportunities. Firstly, we've completed the acquisition of the Super Deck business, effective on the 3rd of July. It's already been well integrated into Acrow.

Speaker #2: Works in conjunction with our Screens and Jump Form business. It is the market leader in this area in the country. Excellent early results. We've already obviously had the July result.

Speaker #2: Strong forecast for the next few months, performing at the levels that we expected to. And we've got great ambitions for this business on a national basis.

Steven Boland: We have got great ambitions for this business on a national basis in conjunction with our screens and Jumpform offering for high-rise commercial and residential developments. The Ausgroup acquisition. So I can report that today is effectively the final day for ACCC sign-off. All indications are that we will get that. We actually had the ACCC approval two weeks ago, but it needed to undertake a two-week cooling off period. That cooling off period completes today. We understand that there has been no adverse commentary in relation to the acquisition over that two-week period. So we will be going ahead with completion of this acquisition, be effective on 31 August, so 1 September for us. Look, this business provides great scale for that Bowen Basin region for us in terms of equipment and manpower, totally complementary to the MI Scaffold business.

Speaker #2: In conjunction with our Screens and Jump Forms offering for high-rise commercial and residential developments, the Ausgrid acquisition—so, from report that today is effectively the final day for ACCC sign-off—all indications are that we'll get that.

Speaker #2: We actually had the ACCC approval two weeks ago, but it did undertake a two-week cooling-off period. That cooling-off period completes today. We understand that there has been no adverse commentary in relation to the acquisition over that two-week period.

Speaker #2: So, we'll be going ahead with completion of this acquisition, effective on the 31st of August—so, 1st of September for us. Look, this business provides great scale for that Bowen Basin region for us in terms of equipment and manpower.

Speaker #2: Totally complementary to the MI Scaffold business. It gives us a wider service offering in the region with the Titan Blast and Engineering Services that Ausgrid had, which is a relatively small part of their revenue, but it's an important part of what we see as the future growth of that region.

Steven Boland: Gives us a wider service offering in the region with the paint and blast and engineering services that Ausgroup have, which is a relatively small part of their revenue. But it is important part of what we see as the future growth of that region. I am going to touch on that in a second bit further. Integration planning is already well underway, even though we are still a week and a half away from, effectively a week away from settling. There are meetings going on today between the senior management of MI, Ausgroup, and our industrial business to get the integration planning well underway. Moving on to product development. Look, it is one of the forefronts of our strategy. We have been talking about innovation as one of the strong points of Acrow, and I will let Matt talk through some of these opportunities we have got in front of us.

Speaker #2: I'm going to touch on that in a second, a bit further. Integration planning is already well underway. Even though we're still a week and a half away—effectively, a week away—from settling, there are meetings going on today between the senior management of MI, Ausgrid, and our industrial business to get the integration planning well underway.

Steven Boland: There are meetings going on today between the senior management of MI, Ausgroup, and our industrial business to get the integration planning well underway. Moving on to product development. Look, it is one of the forefronts of our strategy. We have been talking about innovation as one of the strong points of Acrow, and I will let Matt talk through some of these opportunities we have got in front of us.

Speaker #2: Move on to product development. Look, it's a full one of the forefronts of our strategy. We've been talking about innovation as one of the strong points of Acrow.

Speaker #2: And I'll let Matt talk through some of these opportunities we've got in front of us.

Speaker #3: Thanks, Steve. So one of the things, as Steve said, is that different. Differentiate Acro's ability to continually innovate and develop proprietary solutions. But for our over the last two or three years, we've really done is to solve the problems of our customers and to suit the Australian market.

Matt Caporella: Thanks, Steve. One of the things, as Steve said, that differentiates Acrow is our ability to continually innovate and develop proprietary solutions. Over the last 2 or 3 years, what we have really done is to solve problems with our customers and to suit the Australian market, and creating new opportunities for the business. I will just cover a few things, the products that we have launched in the last 12 months, plus a couple of exciting opportunities that are about to launch in the H1 of this financial year. First I will cover is the Powershore 60. We launched this in February, and we have been working on this for the last couple of years. But this product is entirely developed in-house. Acrow own all the IP for the product and the manufacturing ability.

Speaker #3: And creating new opportunities for the business. So I'll just cover a few things: products that we've launched in the last 12 months, plus a couple of exciting opportunities that are about to launch in the first half of this financial year.

Speaker #3: First, I'll cover PowerShell 6.0. We launched this in February, and we've been working on it for the last couple of years. This product's been tightly developed in-house.

Speaker #3: Acrow earned all the IP for the product and the manufacturing ability. So, with this product, we're delivering around double the load capacity of a comparable product in the market, but we're only about 20% heavier.

Matt Caporella: This product, we are delivering around double the load capacity of a comparable product in the market, but we are only about 20% heavier. So quite innovative and really well received in the market. We have successfully commercialized the product basically across every state in Australia. That is in higher end sales of the product. And it is really expanding our foray into the temporary works propping segment. I will cover a bit further on. The next product is our Uni-Ring. Uni-Ring is our version of a Ringlock scaffolding system. The same here, we have now got projects across all of Australia, so Queensland, New South Wales, Victoria, and WA. Most importantly, this is supporting the growth in our industrial divisions, and opening up new opportunities in the infrastructure and civil markets. Also seeing an increase in product sales of this product now. We have got multiple sales in Queensland and Victoria.

Speaker #3: So quite innovative and really well received in the market. We've successfully commercialised the product basically across every state in Australia. That's in higher-end sales of the product.

Speaker #3: And it's really expanding our 4A into the temporary works propping segment. I'll cover it a bit further on. The next product is our union ring.

Speaker #3: So Union Ring is our version of a ring lock scaffolding system. The same here, we've now got projects across all of Australia—so Queensland, New South Wales, Victoria, and WA.

Matt Caporella: The same here, we have now got projects across all of Australia, so Queensland, New South Wales, Victoria, and WA. Most importantly, this is supporting the growth in our industrial divisions, and opening up new opportunities in the infrastructure and civil markets. Also seeing an increase in product sales of this product now. We have got multiple sales in Queensland and Victoria.

Speaker #3: Most importantly, this is supporting the growth in our Industrial division and opening up new opportunities in the infrastructure and civil markets. We are also seeing an increase in product sales of this product now.

Speaker #3: We've got multiple sales in Queensland and Victoria. We're benefiting from owning the IP here as well, and the manufacturing capabilities. This was primarily shown on the project impairment, where we had to mobilise thousands of tonnes of materials in a really short timeframe.

Matt Caporella: We are benefiting from owning the IP here as well and the manufacturing capabilities, and this primarily was shown on the project in Perdaman, where we had to mobilize thousands of tons of materials in a really short timeframe. We could spread it across different factories and deliver quickly. One part of the business we are getting into now is propping. So strong demand for engineering propping solutions. This is not just the traditional formwork sort of packages we are doing. It is standalone propping. We are supplying the propping in. We are also doing labor in some positions where we are installing the propping. This is using our extensive fleet of systems that we have already got in our formwork business. And we are continuing on investing into these sorts of product lines, just like the Powershore 60 I mentioned before.

Speaker #3: We just spread it across different factories and deliver quickly. One part of the business we're getting into now is propping, so there's strong demand for engineering propping solutions.

Speaker #3: So this is not just the traditional formwork sort of packages we're doing. It's sort of standalone propping. We're supplying the propping and we're also doing labour in some positions where we're installing the propping.

Speaker #3: This is using our extensive fleet of systems that we've already got in our formwork business, and we're continuing to invest into these sorts of product lines, just like the PowerShell 60 I mentioned before.

Speaker #3: One thing that we've always sort of done in the past is bespoke formwork, but it's really ramping up in the last sort of 12 months.

Matt Caporella: One thing that we've always done in the past is bespoke formwork, but it's really ramping up in the last 12 months, and this is where proprietary systems remain. They remain core of our business, but with complex projects now becoming more and more prevalent, customers require the more tailored solution. We've always offered this, but now we're getting into it a lot more. So ultimately, this is bespoke formwork capabilities using our design engineering and supply chain. And basically offering a standalone model for the customer where it's a single point of contact where we're leveraging our engineering expertise and also our manufacturing capability.

Speaker #3: And this is where proprietary systems remain. They remain core to our business, but with complex projects now becoming more and more prevalent, customers require a more tailored solution.

Speaker #3: So we've always offered this, but now we're getting into it a lot more. Ultimately, this is bespoke formwork capabilities using our design, engineering, and supply chain.

Speaker #3: And basically offering a standalone model for the customer, where it's a single point of contact. We're leveraging our engineering expertise and also our manufacturing capability.

Speaker #2: Yes. So, on that sphere, to say, this product is sold onto the project.

Steven Boland: Yeah. So on that, it's fair to say, this product is sold onto the project.

Speaker #3: Sold onto the project.

Matt Caporella: Sold onto the project.

Speaker #2: A single use sold to the project, and it's a very large example. There's one example at the moment, Matt, of equipment for the Western Harbour Tunnel in Sydney.

Steven Boland: Single use, sold to the project.

Matt Caporella: Yeah.

Steven Boland: And there's some very large examples. One example at the moment, Matt, of equipment for the Western Harbour Tunnel in Sydney.

Speaker #3: Yeah, which is the photo in the report. We're doing a similar sort of project, which we'll be doing in Melbourne as well. It's a large, bespoke tunnel formwork where it's primarily seen.

Matt Caporella: Yeah, which is the photo in the reporting.

Steven Boland: Yeah.

Matt Caporella: We're doing a similar sort of project we'll be doing in Melbourne as well.

Steven Boland: Great.

Matt Caporella: Large bespoke tunnel formwork that is primarily seen.

Speaker #2: Okay, thank you, Matt. Just keep going. So, on the industrial business—building sustainable earnings—it's a business that has allowed us to have far more confidence about what the picture of the business looks like going forward.

Steven Boland: Okay. Thank you, Matt. Just keep going. On the industrial business, it will still be sustainable earnings. It is a business that has allowed us to have far more confidence about what the picture of the business looks like going forward. You can see what we have developed over a three-year period. We have gone from a AUD 40 million turnover to a AUD 200 million turnover between 2023 and 2026. This year, we came into the year with AUD 180 million of secured revenue, and that was before the Ausgroup acquisition. We are forecasting this year to do AUD 280 million in revenue, up AUD 80 million for the year. About half of that would be Ausgroup, and half of that still will be organic. It is not just an M&A story.

Speaker #2: You can see what we've developed over a three-year period. We've gone from a $40 million turnover to a $200 million turnover between '23 and '26.

Speaker #2: This year, we've already got 100. We came into the year with $180 million of secured revenue, and that was before the Ausgrid acquisition.

Speaker #2: We're forecasting this year to do $280 million in revenue, up $80 million for the year. About half of that would be Ausgrid, and half of that still will be organic.

Speaker #2: So, it's not just an M&A story. Every year, we get at least about 50% of our uplifting revenue coming from organic initiatives.

Steven Boland: Every year we get at least about 50% of our uplift in revenue coming out of organic initiatives. One example that is now working strongly, if I go to the next page. We won the Perdaman contract 18 months, two years ago. It has been operating at a reasonable level of around AUD 2 to AUD 2.5 million a month of revenue. We are now winning more packages. In the last three months, we have won another AUD 1 million odd dollars worth of work over just a three-month period on really strong margins. We expect that will continue. There is a lot of discussions going on about broadening the scope of the work that we currently do on that project. Look, we are getting the benefits of scale. Matt talked about the Uni-Ring product.

Speaker #2: One example that's now working strongly, if I go to the next page, so we won the Permanent Contract, 18 months, two years ago. It's been operating at a reasonable level of around sort of 2 to 2 and a half million dollars a month of revenue.

Speaker #2: We're now winning more packages. So, in the last three months, we've won another $1 million worth of work overall, just to lock a three-month period on really strong margins.

Speaker #2: And we expect that will continue. There's a lot of discussion going on about broadening the scope of the work that we currently do on that project.

Speaker #2: So look, we're getting the benefits of scale. Matt talked about the Union Ring product. Union Ring product has a lot of flexibility. And one of the things we're moving into strongly now is an application for Union Ring on civil infrastructure projects.

Steven Boland: Uni-Ring product has a lot of flexibility, and one of the things we are moving into strongly now is an application for Uni-Ring on civil infrastructure projects. It looks like we are going to be winning quite a lot of packages for this kind of work on the Rockhampton Ring Road project, as an example. Central and North Queensland. Clearly with the acquisition of Ausgroup and the existing business of MI, we have got a very significant business in this area. If you are taking into account Gladstone and Townsville, we have got about AUD 100 million region of revenue. Almost 25% of Acrow's total revenue. We have got great scale. It is a critical region for Australia's met coal export market. We have done a lot of research on that market before we bought the Ausgroup business. It is clear that that market is not deteriorating anytime soon.

Speaker #2: It looks like we're going to be winning quite a lot of packages for this kind of work, on the Rocky Ring Road project as an example.

Speaker #2: Central and North Queensland. So, clearly with the acquisition of Ausgrid and the existing business of MI, we've got a very significant business in this area.

Speaker #2: If you take into account Gladstone and Townsville, we've got about a $100 million region of revenue. So it's almost 25% of Acrow's total revenue.

Speaker #2: So we've got great scale. We've got and it's in an area it's a critical region for Australia's met coal export market. And yeah, we've done a lot of research on that market before we bought the Ausgrid business.

Speaker #2: And it's clear that that market is not deteriorating anytime soon. Big training and development focus for us to try to breed our own, to develop even further scale.

Steven Boland: Big training and development focus for us to try to breed our own to develop even further scale. What we are really trying to do in this region is build a moat. Put ourselves in a position where we are very strong in terms of capability. We have got the scale, we have got the manpower, and from a capability perspective, we give ourselves a really strong position. Next one, the Sydney Harbour Bridge. I will go out on a limb. I will say that the Sydney Harbour Bridge project for us, has a bigger growth opportunity than the Brisbane Olympic Games does. We have got over a decade of relationship with the Transport for NSW on the bridge through our Above Scaffolding division. Established a high level of customer service and reputation. Now the combination with Acrow enhances that capability significantly.

Speaker #2: What we're really trying to do in this region is build a moat. Put ourselves in a position where we've got such a we're very strong in terms of capability.

Speaker #2: So we've got the scale, we've got the manpower, and from a capability perspective, we give ourselves a really strong position. Next one, the City Harbour Bridge.

Speaker #2: So I'll go out on a limb. I'll say that the City Harbour Bridge project for us has a bigger growth opportunity than the Brisbane Olympic Games does.

Speaker #2: We've got over a decade of relationship with Transport for New South Wales on the bridge through our BUB Scaffolding division. We've established a high level of customer service and reputation.

Speaker #2: Now, the combination with Acrow enhances that capability significantly. We've recently submitted, in July, an expression of interest for a lot of work on the bridge leading up to the centenary of the bridge opening in 2032.

Steven Boland: We've recently submitted in July an expression of interest for a lot of work on the bridge leading up to the centenary of the bridge opening in 2032. There's a lot of work there. We've said AUD 400 to AUD 600 million worth of revenue. I've heard other numbers floated around a lot more than that. It's a lot of work. We're a proven partner and service provider for Transport for NSW. We've got the capability to tender and deliver services on all packages. We're probably the only company in Australia that can actually do that. There are parts of it that companies might be more specialist in, but in the expression of interest, you were required to nominate whether you needed to have a subcontract partner for any packages, and we don't need that. We can provide the services for all of the packages that will be let.

Speaker #2: There's a lot of work there. So we've said $400 to $600 million worth of revenue, though other numbers have floated around—some a lot more than that.

Speaker #2: It's a lot as a proven partner and service provider for Transport for New South Wales. We've got the capability to tender and deliver services on all packages.

Speaker #2: We're probably the only company in Australia that can actually do that. There are parts of it where other companies might be more specialist, but in the expression of interest, you were required to nominate whether you needed to have a subcontract partner for any packages, and we don't need that.

Speaker #2: We can provide the services for all of the packages that will be led. In terms of the construction division, there's a strong pipeline across all sectors now.

Steven Boland: In terms of the construction division, strong pipeline across all sectors now. It's probably the strongest it's been for at least 3 years. A couple of examples. Snowy Hydro, which is at the moment for us, an industrial project. In FY26, that project generated around about AUD 16 million of revenue for our industrial division. That will go to in excess of AUD 25 million in 2027, with the already accepted pipeline of work and the rates that we're getting for that job. Now we move into the formwork focus. At the moment, there's upwards of AUD 50 million of specialized formwork packages under live tender. This project, which at the moment is a strong industrial one for us, we have done formwork. We've probably generated maybe AUD 5 to AUD 10 million of formwork revenue over the last 3 years. There's a significant increase opportunity for us on this project.

Steven Boland: In terms of the construction division, strong pipeline across all sectors now. It's probably the strongest it's been for at least 3 years. A couple of examples. Snowy Hydro, which is at the moment for us, an industrial project. In fiscal year 2026, that project generated around about AUD 16 million of revenue for our industrial division. That will go to in excess of AUD 25 million in 2027, with the already accepted pipeline of work and the rates that we're getting for that job. Now we move into the formwork focus. At the moment, there's upwards of AUD 50 million of specialized formwork packages under live tender. This project, which at the moment is a strong industrial one for us, we have done formwork. We've probably generated maybe AUD 5 to AUD 10 million of formwork revenue over the last 3 years.

Speaker #2: It's probably the strongest it's been for at least three years. A couple of examples: Snowy Hydro, which is at the moment for us an industrial project.

Speaker #2: In FY26, that project generated around about $16 million of revenue for our industrial division. That will go to in excess of $25 million in '27, but they're already accepted pipeline of work and the rates that we're getting for that job.

Speaker #2: And now we move into the formwork focus. At the moment, there are upwards of $50 million of specialised formwork packages under live tender.

Speaker #2: So this project, which at the moment is a strong industrial one for us, we have done formwork. We've probably generated maybe $5 to $10 million of formwork revenue over the last three years.

Speaker #2: There's a significant increase opportunity for us on this project—Queensland Infrastructure. We've rolled this out before, but it's accurate. This is the project spend or prospective spend for infrastructure in Queensland.

Steven Boland: There's a significant increase opportunity for us on this project. Queensland Infrastructure. We've rolled this out before, but it's accurate. This is the project spend or prospective spend for infrastructure in Queensland. It's not directly Olympic orientated. You can see that between 2026 and 2030, it's going to double in size. It's a key market for us. It's been soft for some time, and it's really now starting to kick in. Some of the examples on the next page are the types of projects, and they're not just in transport. There's a lot of utilities, water treatment plants, et cetera. The Chambers Flat Wastewater Treatment Plant is one example that's going to kick off in the next few months. Coomera Connector continues to roll. Rocky Ring Road is kicking in now at a reasonably good level for us.

Steven Boland: Queensland Infrastructure. We've rolled this out before, but it's accurate. This is the project spend or prospective spend for infrastructure in Queensland. It's not directly Olympic orientated. You can see that between 2026 and 2030, it's going to double in size. It's a key market for us. It's been soft for some time, and it's really now starting to kick in. Some of the examples on the next page are the types of projects, and they're not just in transport. There's a lot of utilities, water treatment plants, et cetera. The Chambers Flat Wastewater Treatment Plant is one example that's going to kick off in the next few months. Coomera Connector continues to roll. Rocky Ring Road is kicking in now at a reasonably good level for us.

Speaker #2: It's not directly linked or orientated. You can see that between '26 and '30, it's going to double in size. It's a key market for us.

Speaker #2: It's been soft for some time, and it's really now starting to kick in. Some of the examples on the next page are of the types of projects, and they're not just in transport.

Speaker #2: There's a lot of utilities—water, water treatment plants, etc. The Chambers Flat Wastewater Treatment Plant is one example that's going to kick off in the next few months.

Speaker #2: Coomera Connector continues to roll. Rocking Ring Road is kicking in now at a reasonably good level for us. And then one of the major projects going forward in this area is the WAVE, which is the Sunshine Coast to Brisbane Rail.

Steven Boland: One of the major projects going forward in this area is The Wave, which is the Sunshine Coast to Brisbane Rail. Overall, we expect to see significant uplifting activity in infrastructure. Touching on the Olympics, it's real now. There are tenders being let. The first tender that's being let is to BMD for the early works on the stadium. We're in heavy engagement with BMD in relation to works, and that's not a significant amount of work for us, but there will be work. The next big thing is the awarding of the contracts for the building of the stadium, which is down to 2 consortiums. If one of those consortiums wins that project, we will get a lot of formwork, primarily form revenue from that project. Brisbane Showgrounds, which is the redevelopment of the Ekka site, is kicking in now with Hutchinson Builders.

Speaker #2: So overall, we expect to see significant uplifting activity in infrastructure. Touching on the Olympics—and look, it's real now—there are tenders being led.

Speaker #2: The first tender that's being led is BMD for the early works on the stadium. We're in heavy engagement with BMD, BMD in relation to works.

Speaker #2: And that's not a significant amount of work for us, but there will be work. The next big thing is the awarding of the contract for the building of the stadium, which is down to two consortiums.

Speaker #2: If one of those consortiums wins that project, we will get a lot of formwork, primarily jump form revenue, from that project. Brisbane Showgrounds, which is the redevelopment of technically the Ekka site, is kicking in now with Hutchison.

Speaker #2: We've given them quotes for a range of work there that we expect to be well in the game for. Then you move into the Athletes Village, where between land lease and Hutchies, there are 6 to 30-storey towers that we developed over three stages.

Steven Boland: We've given them quotes for a range of work there that we expect to be well in the game for. Then you move into the Athletes' Village, where between Lendlease and Hutchies, there are six 30-story towers that will be developed over three stages. We've had early engagement in terms of the sort of offering that we can have there. So some example, there's now real meat on the bones in terms of the Olympic venues. The National Civil Infrastructure Project pipeline, just to give some examples there we've got across the country. We've got a very strong presence on all the projects that we've mentioned here. I mentioned the Western Harbour Tunnel, where the bespoke formwork systems that we've designed, and we've now sold two of those systems.

Speaker #2: We've had early engagement in terms of the sort of offering that we can have there. So, some examples—I mean, there's now real meat on the bones in terms of the Olympic venues.

Speaker #2: The National Civil Infrastructure Project pipeline—just to give some examples there—we've gone across the country. We've got a very strong presence on all the projects that we've mentioned here.

Speaker #2: I mentioned the Western Harbour Tunnel, where the bespoke formwork systems that we've designed—we've now hired two of those or sold two of those systems.

Speaker #2: The other ones that I'm going to call out are Torrance to Darlington, which has been a good project for us, but it's about to go through its most significant phase.

Steven Boland: The other ones that I'm going to call out are Torrens to Darlington, which has been a good project for us, but is about to go through its most significant phase. In the next three to six months, there's a couple of million AUD worth of work in hire that we expect to win on Torrens to Darlington. At the moment, probably, well not probably, but definitely our biggest civil infrastructure revenue generating project in the country is North East Link. We're probably doing AUD 600,000 to AUD 700,000 a month of revenue on that project. We're winning more packages as time goes. So we continue to be the go-to company in terms of this space. Specialized services cross-selling. Along with product development, one of the absolute strengths of our business these days is our cross-selling.

Speaker #2: In the next three to six months, there's a couple of million dollars' worth of work in hire that we expect to win on Torrance to Darlington.

Speaker #2: And at the moment, probably well, not probably, but definitely our biggest civil infrastructure revenue generating project in the country is Northeast Link. We're probably doing six to seven hundred thousand dollars a month of revenue on that project.

Speaker #2: And we're winning more packages as time goes on, so we continue to be the go-to company in this space. Specialised services, cross-selling—so along with product development, one of the absolute strengths of our business these days is our cross-selling.

Speaker #2: The best example of that is Screens, Jump Forms, Superdeck, and probably other formwork products for high-rise. Other examples are the propping and shoring that Matt talked about, and how that works in the general formwork.

Steven Boland: The best example of that is screens, Jumpform, SuperDeck, and probably other formwork products for high rise. Other examples are the propping and shoring that Matt talked about, and then how that works in with general formwork. Another great example is how the civil formwork, such as Rocky Ring Road, now also brings Acrow access equipment, for some reason. Phil, we didn't get your question. If you wouldn't mind repeating, please.

Speaker #2: Another great example is how the civil formwork, such as Rockingham Ring Road, now also brings Acrow access equipment user acceptance. So, there’s a range of areas now where our product range is enabling us to cross-sell very successfully.

Speaker #2: So finally, with our guidance—so firstly, you can see we've given first half guidance of $195 to $215 million in revenue, and $50 to $55 million in EBITDA.

Speaker #2: You can see they're up significantly compared to the same period last year. We're already up in the first month of the year. We made $3 million more EBITDA than we did in the equivalent month last year.

Speaker #2: Our forecast for the first quarter is that we will be $8 million minimum better than we were for the first quarter last year.

Speaker #2: So there's a clear picture now that shows the turnaround has happened, and that we will be able to achieve the types of results that we're mentioning here.

Speaker #2: At the $110 million midpoint of our full year guidance of EBITDA, which is $30 million up on the previous year, the list of FY26 year, as I said, we've done it.

Speaker #2: We're going to do $8 million in the first quarter, and that's with only one month of Aus Group. We're only kicking in in September for that quarter.

Speaker #2: A big mention earlier was that we haven't specified NPAT and EPS numbers in our guidance because there are a range of moving parts. But this is not just going to be about revenue.

Speaker #2: This is not just going to be about EBITDA. As I mentioned earlier, the underlying NPAT for this year will be up more than 50%.

Speaker #2: And we know that if you roll through the EBITDA guidance, and you roll through what happens with depreciation and finance and tax, it will be up by better than 50%.

Speaker #2: And despite having 32% more shares on issue this year compared to '26, we're going to be more than 20% up in EPS. So this is a year, '27, where we've stagnated for two or three years now off the back of, I guess, restrained construction activity.

Speaker #2: We've been able to maintain our results off the back of our growth of our industrial business. This year, we're going to get both. This year, we are going to continue to grow industrial, and we are already certain that it will continue—the growth in the construction division that we've been looking for over the last two or three years.

Speaker #2: So that's the presentation as we have it at the moment. Thanks. I'm open to any questions that we have from the participants. Thank you.

Speaker #1: If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Speaker #1: If you’re on speakerphone, please pick up the handset to ask your question. The first question comes from Philip Pepe with Sean Partners. Please go ahead.

Speaker #3: Hey guys, thanks for taking the question. Yeah, great job on starting the year strong. I was cutting in and out of it earlier.

Speaker #3: Just on the guidance, I mean, you kind of touched on it there—sort of assuming a symmetric first half and second half, but almost a slowdown in the second half, given how you've started.

Speaker #3: I'm assuming you've been conservative. Can you just elaborate on the swing factors? You talked about the first two or three months—how that's travelling.

Speaker #3: How much are you factoring in, in terms of assuming contract wins, and how much is in, sort of, the pipeline—for want of a better phrase—where you could be actually updating the guidance as the year progresses?

Speaker #4: I'm sorry, Philip. We have lost presenter connection for a minute. Please hold on as we try to reconnect them.

Speaker #3: For some reason—so Phil, we didn't get your question. If you wouldn't mind repeating it, please.

Speaker #5: Mr. Adamowa, fair enough.

Phil: Missed out on my last week. No, fair enough.

[Analyst]: Missed out on my last week. No, fair enough.

Steven Boland: I know mate, it was probably fantastic, but anyway, if you can repeat it, that would be great.

Speaker #3: I know. It was probably fantastic, but anyway, if you can repeat it, that would be great.

Phil: I can only do it once. I will paraphrase. Just on the guidance, you have given us how the first month started and your budget for the 3 months. What are the swing factors that you take into account when you give the longer term guidance? At which point do you anticipate updating the market? Is it AGM or is it H1 result?

[Analyst]: I can only do it once. I will paraphrase. Just on the guidance, you have given us how the first month started and your budget for the 3 months. What are the swing factors that you take into account when you give the longer term guidance? At which point do you anticipate updating the market? Is it AGM or is it H1 result?

Speaker #5: I can only do it once. I'll paraphrase—just on the guidance. So, you've given us how the first month started and your budget for the three months.

Speaker #5: What are the swing factors that you take into account when you give the longer-term guidance, and at which point do you anticipate sort of updating the market?

Speaker #5: Is it AGM, or is it at the half-year result?

Speaker #3: Well, the major swing factors always are product sales that we don't budget for. And there's a lot of big packages of work out there at the moment that we've put out for both spoke formwork and also product sales that we can't budget for and we can't forecast for.

Steven Boland: Well, the major swing factors always are product sales that we do not budget for. There is a lot of big packages of work out there at the moment that we put out for both bespoke formwork and also product sales that we cannot budget for and we cannot forecast for. We would be very conservative on that. Our guidance numbers, certainly H1, as I said, the EBITDA for July was AUD 3 million better than the EBITDA for last July. We are almost at the end of August. We know the result for this month. We have got a very strong forecast for September. It is going to be up AUD 8 million compared to the same period last year. For the H1, we have got a relatively strong degree of confidence. We have got a very strong degree of confidence about that result.

Speaker #3: We'd be very conservative on that. So our guidance numbers—so certainly, first half, as I said, the EBITDA for July was $3 million better than the EBITDA for last July.

Speaker #3: We're almost at the end of August. We know the result for this month. We've got a very strong forecast for September. We believe it's going to be up $8 million compared to the same period last year.

Speaker #3: So for the first half, we've got a relatively strong degree of confidence—well, if you've got a very strong degree of confidence about that result.

Speaker #3: And then the second half is based on our expected run rate for the Construction divisions, and what we already know is basically in the order book for the Industrial businesses.

Steven Boland: The H2 is based on our expected run rate for the construction divisions. What we already know is basically in the order book for the industrial businesses. The swing factors will be, as I said, primarily winning some of the bespoke packages that we currently have on tender that we do not put into the forecast and large product sales, and then obviously better activity than we anticipate.

Speaker #3: So, the swing factors will be, as I said, primarily winning some of the spoke packages that we currently have on tender, which we don't put into the forecast, and large product sales.

Speaker #3: And then, obviously, better activity than we anticipated. But I think the main thing that we wanted to do here is, obviously, we've stagnated for three years.

Steven Boland: But I think the main thing that we wanted to do here is, obviously we have stagnated for three years. We have been hovering around between AUD 75 million and AUD 80 million of EBITDA for three years, and looking for that to get into the 90s. Without the acquisitions this year, it is into the 90s. With the acquisitions, it is pushing up closer to AUD 110 million. So this is the year that Acrow's EBITDA starts to lift again after three years of stagnation.

Speaker #3: We've been hovering around between $75 million and $80 million of EBITDA for three years, and looking for that to get into the 90s. Without the acquisitions this year, it's into the 90s.

Speaker #3: With the acquisitions, it's pushing up closer to $110 million. So, this is the year that Acrow's EBITDA starts to lift again after three years of stagnation.

Speaker #5: Excellent. And I think you mentioned earlier, but it cut out. Obviously, cash has come in the door in July and August from the raises. What's the gearing as we stand today, on a runway basis?

Phil: Excellent. And I think you had mentioned earlier, but it cut out. Obviously cash has come in the door July, August from the raises. What is the gearing as we stand today on a run rate basis?

[Analyst]: Excellent. And I think you had mentioned earlier, but it cut out. Obviously cash has come in the door July, August from the raises. What is the gearing as we stand today on a run rate basis?

Speaker #3: So, on a runway basis, no. So, the gearing—I think I’ve got it on the pro forma right now. If you have a look at the balance sheet, the net EBITDA, well, the pro forma is 1.6 and the net gearing will be down by about 5%.

Andrew Crowther: So on a run rate basis, the gearing, I think I have got it on the pro forma right now. If you have a look at the balance sheet, the net debt to EBITDA, the pro forma is 1.6, and the net gearing will be down by about 5%, 35.6%.

Speaker #3: 35.6%.

Speaker #5: Thank you.

Phil: Thank you.

[Analyst]: Thank you.

Speaker #1: The next question comes from Alex Lou with Morgan's Financial. Please go ahead.

Operator 2: The next question comes from Alex Lu with Morgans Financial. Please go ahead.

Operator: The next question comes from Alex Lu with Morgans Financial. Please go ahead.

Speaker #6: Good morning, guys. I just had a question on underlying EBITDA margins, please—so maybe just one for Andrew. Margins were down 640 basis points.

Alex Lu: Morning, guys. I just had a question on underlying EBITDA margins, please. Maybe just one for Andrew. Margins were down 640 basis points. You have talked to some of the key drivers of that, just around the change in mix towards industrial access versus construction. Sounds like there is more equipment sales and also there is a bigger contribution from some of your larger customers in industrial access. Just wondering, can you just break down some of those contributors to that margin decline, please? Just noting that, you have said that most of that is due to the change in mix. I just wonder if you can help out there, please.

Speaker #6: So, you have talked to some of the key drivers of that, just around the change in mix towards industrial access versus construction. It sounds like there are more equipment sales, and also there's a bigger contribution from some of your larger customers in industrial access.

Speaker #6: But just wondering, can you break down some of those contributors to that margin decline, please? Just noting that you have said most of that is due to the change in mix.

Speaker #6: I just wonder if you can help out there, please.

Speaker #3: Hey Alex, I think you've actually answered that question. With your question, it is literally the 50/50 to 60/40 change between construction and industrial. And there was actually a mix of more sales than hire during the year as well.

Andrew Crowther: Hey, Alex, I think you actually answered that question with your question. It is literally the 50/50 to 60/40 change between construction and industrial. There was actually a mix of more sales than hire during the year as well. That is because of the mix of construction to industrial. As Steve pointed out, there was quite a large difference in revenue between our five largest customers this year to last year, which has a lower labor margin. I do not have the actual.

Speaker #3: And that's because of the mix of construction and industrial. So, and there was—as Steve pointed out—there was quite a large difference in revenue between our five largest customers this year compared to last year.

Speaker #3: So which has a lower labour margin? So I don't have the actual— You can work it out. So Alex, sorry to be— But you can actually work it out.

Steven Boland: You can work it out. Alex, sorry to butt you, but you can actually work it out. The EBITDA margin in construction is 42%. The EBITDA margin in industrial is 18%, so I cannot do the maths that quickly in my head. If you work out the difference between a 60% contribution from industrial to 50%, I am not sure that you will not get to that number.

Speaker #3: The EBITDA margin in construction is 42%. The EBITDA margin in industrial is 18%. So I can't do the math that quickly in my head.

Speaker #3: But if you work out the difference between a 60% contribution from Industrial to a 50%, I'm not sure that you won't get to that number.

Speaker #3: You will. Exactly.

Andrew Crowther: Yeah. You will get it. No, exactly.

Speaker #6: Yep. Outside of that, was there anything else that contributed, or were those the main things in terms of?

Alex Lu: But outside of that, was there anything else that contributed or those were the main things in terms of?

Andrew Crowther: Yeah. Look, nothing material.

Speaker #3: Yeah, look, nothing material. Yeah, the absolute main things. But one of the things I did mention was about $1.5 million of extra bad debts.

Alex Lu: Were they the main?

Andrew Crowther: Yeah, they are the absolute main things. But one of the things I did mention was about AUD 1.5 million of extra bad debts. There was yard increases and so forth, but that was because of our expansion. But that is only one-off.

Speaker #3: There were yard increases and so forth, but that was because of our expansion. But that's the only sort of one-off. But the bad debts are still—it's like less than 1% of revenue, right?

Steven Boland: But the bad debts is still

Andrew Crowther: It is not big.

Andrew Crowther: It is less than 1% of revenue, right?

Steven Boland: Yeah. It is not big.

Speaker #3: I mean, it was more than the previous year, which is always disappointing. You don't want to have a bad debt. But it was $1.5 million more than the previous year, which was.

Steven Boland: It was more than the previous year, which is always disappointing. You do not want to have a bad debt, but it was AUD 1.5 million more than the previous year. But we had had two years of a relatively low number there, and hopefully we return to that this year. But as I said, it is still less than 1% of revenue.

Speaker #3: We had two years of a relatively low number there, and hopefully we’ve returned to that this year. But it’s still, as I said, well less than 1% of revenue.

Speaker #3: Yeah.

Andrew Crowther: Yeah.

Speaker #6: Okay. And what was the bad debts last year, Andrew?

Alex Lu: What was the bad debt last year, Andrew?

Speaker #3: It was 1.2, I think it was. The total bad debt for previous year? No, 800 actually. Sorry. So, last year, $800. This year is $2,369.

Andrew Crowther: It was it 1.2, I think it was.

Steven Boland: The total bad debt for previous year?

Andrew Crowther: No, 800 actually. Sorry.

Andrew Crowther: Yes.

Andrew Crowther: Last year was 800. This year is 2.369.

Speaker #3: Yeah, so last year was abnormally low.

Steven Boland: Yeah.

Alex Lu: Okay.

Andrew Crowther: Last year was abnormally low.

Speaker #6: Yeah, okay. Cool. And then maybe just on the upgrade, please, on '27 guidance—what's gone better than expected for you to upgrade the guidance versus when you gave guidance a few months ago?

Alex Lu: Okay, cool. Then, maybe just on the upgrade please, on 2027 guidance. What has gone better than expected for you to upgrade the guidance versus when you gave guidance a few months ago?

Steven Boland: Just the start of the year.

Speaker #3: The start of the year.

Speaker #6: Okay, so the pipeline is the same. So, the pipeline's increased as well?

Steven Boland: Okay. So the pipeline is the same. So the pipeline has increased as well?

Speaker #3: Yeah. But we've exceeded our budget in the first month by over $1 million. We'll exceed our budget in the second month by over $1 million.

Steven Boland: Yeah. We exceeded our budget in the first month by over AUD 1 million. We will exceed our budget in the second month by over AUD 1 million. So, we have already seen straight up an improved result on what we were forecasting at the time we did the last guidance, which was when we did the CapEx raise. So, I have mentioned that earlier, Alex Lu. We are going to be up AUD 8 million compared to the same period last year for the first quarter. That only has one month of Ausgroup, which is around about a AUD 500,000 to AUD 600,000 a month contributor to the EBITDA. So we are AUD 8 million better for the first quarter, and we are forecasting to be AUD 30 million at the moment at the midpoint better for the year. So I think, again, you can see how that all comes together.

Speaker #3: So we've already seen, straight up, an improved result compared to what we were forecasting at the time we did the last guidance, which was when we did the cap raise.

Speaker #3: So, I think I've mentioned that earlier, Alex. We're going to be up $8 million, compared to the same period last year, for the first quarter.

Speaker #3: That only has one month of ages, which is around about $500,000 to $600,000 a month contributed to EBITDA. So we're $8 million better for the first quarter.

Steven Boland: That only has one month of Ausgroup, which is around about a AUD 500,000 to AUD 600,000 a month contributor to the EBITDA. So we are AUD 8 million better for the first quarter, and we are forecasting to be AUD 30 million at the moment at the midpoint better for the year. So I think, again, you can see how that all comes together.

Speaker #3: And we're forecasting to be $30 million at the moment at the midpoint, better for the year. So I think, again, you can see how that all comes together.

Speaker #6: Okay, great. And just to be clear, Steve, the guidance doesn't include anything that you might get for the Brisbane Olympics. Is that right?

Alex Lu: Okay, great. Just to be clear, Steve, the guidance does not include anything that you might get for Brisbane Olympics, is that right?

Speaker #3: We expect to have—well, put it this way: there is zero revenue in our forecast for FY27 for Brisbane Olympics. Now, what we think will happen is we will be doing some work for BMD on the civil works for the main stadium.

Steven Boland: Well, put it this way, there is zero revenue in our forecast for FY27 for Brisbane Olympics. What we think will happen, we will be doing some work for BMD on the civil works for the main stadium. It is not a lot of revenue. We will be doing some revenue there. Sure, we will be in that, right?

Steven Boland: Well, put it this way, there is zero revenue in our forecast for fiscal year 2027 for Brisbane Olympics. What we think will happen, we will be doing some work for BMD on the civil works for the main stadium. It is not a lot of revenue. We will be doing some revenue there. Sure, we will be in that, right? But it will not be a lot of revenue.

Speaker #3: It's not a lot of revenue. We'll be doing some revenue there—sure, we will be in that, right? But it won't be a lot of revenue.

Steven Boland: Yeah.

Steven Boland: But it will not be a lot of revenue.

Alex Lu: It is minimal.

Speaker #3: The first big package that we would be hoping to win—well, and this is totally in the hands of who wins, which builder wins the main stadium.

Steven Boland: The first big package that we would be hoping to win and this is totally in the hands of which builder wins the main stadium. That is going to be announced in the next, I don't know, 6 to 8 weeks, call it, maybe even shorter timeframe than that. If one of the two consortiums wins it, we will have a significant package of work. If the other consortium wins, we might not. It is that simple. Now, that revenue, you will not see till probably maybe the absolute tail end of this year into the following year.

Speaker #3: That would be something that's going to be announced in the next, I don't know, six to eight weeks, call it—maybe even a shorter time frame than that.

Speaker #3: So, if one of the two consortiums wins it, we will have a significant package of work. If the other consortium wins, we might not.

Speaker #3: It's that simple. Now, that revenue you probably won't see until maybe the absolute tail end of this year or the end of the following year.

Speaker #6: Okay. Thank you.

Steven Boland: Okay. Thank you.

Operator 2: The next question comes from Benjamin Youn with Ord. Please go ahead.

Operator: The next question comes from Benjamin Youn with Ord. Please go ahead.

Speaker #1: The next question comes from Benjamin Yun with Ords. Please go ahead.

Speaker #5: Hello, James. We're on the results. Just looking at FY27, that split of revenue between Industrial Access—that looks to be jumping to about, call it, 65 to 66 percent of revenue. Just trying to get an idea of what's your ideal balance there, in terms of revenue mix?

Benjamin Yun: Well done on the results. Just looking at FY27, that split of revenue between industrial access, that looks to be jumping to about, call it 65% to 66% of revenue. Just trying to get an idea of what is your ideal balance there in terms of revenue mix?

Benjamin Yun: Well done on the results. Just looking at fiscal year 2027, that split of revenue between industrial access, that looks to be jumping to about, call it 65% to 66% of revenue. Just trying to get an idea of what is your ideal balance there in terms of revenue mix?

Speaker #3: So, the current forecast is basically 50/50. So, it goes from 60/40 back to 50/50. So, the current forecast at our midpoint of our guidance, which is $420 million, is $280 million industrial, $140 million construction.

Steven Boland: The current forecast is basically 50/50. It goes from 60/40 back to 50/50. The current forecast at our midpoint of our guidance, which is AUD 420 million, is AUD 280 million industrial, AUD 140 million construction. That is the way you would work it out. I mean, we put a number on that, Benjamin, earlier in the presentation around what our expected revenue is for industrial, which is AUD 280 million. So yeah, that is the split that we are looking at at the moment, AUD 280 million and AUD 140 million, AUD 420 million.

Speaker #3: So that's the way you—that's the way you would work it out. I mean, we put a number on that. Benjamin, earlier in the presentation, around what our expected revenue is for industrial, which is $280.

Speaker #3: So, yeah, that's the split that we're looking at at the moment: 280 and 140—420.

Speaker #5: Understood. And just jumping off across to the Colin Climber, taking that Merit and Cypress very much as a proven concept, the innovation there—can you give us an idea of how the interest in that product has grown following its 10 jumps?

Benjamin Yun: Understood. Just jumping off across to the Column Climber. Taking that Meriton site very much as a proof of concept of the innovation there, can you give us an idea of how that interest in that product has grown following its 10 jumps?

Speaker #3: Got it. We've had maybe three separate clients now. We've taught them on the site and shown the site. This sort of system is suited for towers over about 50 stories.

Steven Boland: Got it.

Matt Caporella: We have had maybe three separate clients now. We have toured them on the site and shown the site. This sort of system is suited for towers over about 50 stories. So, there are a few in the pipeline coming up. It is just a matter of one of these projects coming off and then getting onto another site. But yeah, so far we have actually been touring customers on site and showing them, and there has been a lot of interest, people inquiring, seeing it on social media and stuff. So it has been positive so far.

Speaker #3: So, there's a few in the pipeline coming up. It's just a matter of one of these projects coming off and then getting onto another site.

Speaker #3: But yeah, so far we've actually been touring customers' sites and showing them, and there has been a lot of interest—people inquiring, seeing it on social media and stuff.

Speaker #3: So, it's been positive so far.

Speaker #5: Thanks, Matt. And just one last one. In terms of M&A, what type of businesses or geographies are you interested in going ahead into FY27?

Benjamin Yun: Thanks, Matt. Maybe just one last one. In terms of M&A, what type of businesses or geographies are you interested going ahead into FY27?

Benjamin Yun: Thanks, Matt. Maybe just one last one. In terms of M&A, what type of businesses or geographies are you interested going ahead into fiscal year 2027?

Speaker #3: We're not looking at anything at the moment. So, we've just done two. We did two the previous year. We said this last year, and then some opportunities presented themselves.

Steven Boland: We are not looking at anything at the moment. We have just done two. We did two this previous year. I mean, we said this last year, and then some opportunities presented themselves, but I can say at the moment, we are not actively looking at any M&A. We have had some approaches, and we said the timing is not right for us to look at that at the moment. We really need to bed these down. It is still part of our business's strategy, and we will revisit at some point, but I do not think this year, and I might be then held accountable for that if we come up with some wonderful opportunity. But at the moment, I can say we are not actively looking at anything. We would love to get some industrial business in Western Australia, but there is nothing that has presented itself that has been of interest to us.

Speaker #3: But I can say at the moment, we're not actively looking at any M&A. We've had some approaches, and we said the timing is not right for us to look at that at the moment.

Speaker #3: So we really need to bid these down. It's still part of our business's strategy and we'll revisit at some point. But I don't think this year and I might be then held accountable for that if I come up with some we come up with some wonderful opportunity.

Steven Boland: We really need to bed these down. It is still part of our business's strategy, and we will revisit at some point, but I do not think this year, and I might be then held accountable for that if we come up with some wonderful opportunity. But at the moment, I can say we are not actively looking at anything. We would love to get some industrial business in Western Australia, but there is nothing that has presented itself that has been of interest to us.

Speaker #3: But at the moment, I could say we're not actively looking at anything. We'd love to get some industrial business in Western Australia, but there's nothing that's presented itself that's been of interest to us.

Speaker #5: Understood. Thanks, James.

Benjamin Yun: Understood. Thanks, gents.

Speaker #1: The next question comes from Peter Moeller with Blue Ocean Equities. Please go ahead.

Operator 2: The next question comes from Peter Muller with Blue Ocean Equities. Please go ahead.

Operator: The next question comes from Peter Muller with Blue Ocean Equities. Please go ahead.

Speaker #7: Hi, guys. Well, well done on the result. The outlook? Yeah, good. Good, yeah. I was going to ask about this Sydney Harbour Bridge contract.

Peter Muller: Well done on the result and the outlook.

Peter Moller: Well done on the result and the outlook.

Steven Boland: Hey, Peter, how are you?

Peter Muller: Yeah, good. I was going to ask, the Sydney Harbour Bridge contract, that seems much larger than, or the potential expansion is much larger than I thought. Can you talk about whether you have advantages of being there on-site already and whether, I suppose, a competing player could enter that given, I suppose, your already position there.

Peter Moller: Yeah, good. I was going to ask, the Sydney Harbour Bridge contract, that seems much larger than, or the potential expansion is much larger than I thought. Can you talk about whether you have advantages of being there on-site already and whether, I suppose, a competing player could enter that given, I suppose, your already position there.

Speaker #7: That seems much larger than—or the potential expansion is much larger than—I thought. Can you talk about whether you have advantages being there on site already, and whether, I suppose, a competing player could enter that given?

Speaker #7: I suppose you already.

Speaker #3: Yeah, let Matt talk to you. This is pretty close to what our sort of opportunities are there.

Steven Boland: Yeah, let Matt talk because Matt's pretty close to what our opportunities are there.

Speaker #4: Yeah, 100%, Peter. So the actual package we're on at the moment is maybe 5% of one of the 10 packages, for example. And it's just basically when the centenary is in 2032.

Matt Caporella: Yeah, 100%, Peter. The actual package we are on at the moment is maybe 5% of one of the 10 packages, for example. It is just basically when the centenary is in 2032. At the moment, they are basically letting each portion of the bridge off in little chunks. They need to fast-track effectively. Instead of doing one cord out of the 20, they want someone to do all 20 cords at once. Out of the 10 packages that they have released, we have probably already done those sorts of works on five or six packages. We are one of only three scaffold rope access providers on the bridge at the moment. Yeah, definitely we are in a good position.

Speaker #4: So at the moment, they're basically letting each portion of the bridge off in little chunks. They're looking to— they need to fast track, effectively.

Speaker #4: So, instead of doing one cord out of the 20, they want someone to do all 20 cords at once. So, out of the 10 packages that they've released, we've probably already done those sorts of works on five or six packages.

Speaker #4: So, we're one of only three scaffold rope access providers on the bridge at the moment. So yeah, definitely, we're in a good position.

Speaker #3: And talk about the innovation, Matt. State innovation with the loading—the loading type?

Steven Boland: Matt, talk about the innovation, Matt, that innovation with the loading. The loading stuff.

Matt Caporella: Yeah. For example, we have spoken about this before, but the loading, the HLD we call it, on the bridge at the moment, that is on the current package. If you actually drive along Sydney Harbour Bridge, you will see it. We have had basically ability now to supply. They had issues with road closures. We gave them a solution to put a deck over the top of Sydney Harbour Bridge, so they could basically work at any time during the day. The current scope that is out now is actually looking at covering the entire bridge, so they can do all the work above. We were the ones that sort of came up with that innovation in the first place. So definitely in a good position.

Speaker #4: Yeah. And then, for example, we've spoken about this before, but loading the HOD, we call it, on the bridge at the moment—that's on the current package.

Speaker #4: If you actually drive along Sydney Harbour Bridge, you'll see it. We've basically had the ability now to supply—they had issues with road closures.

Speaker #4: So we gave them a solution: to put a deck over the top of Sydney Harbour Bridge so they could basically work at any time during the day.

Speaker #4: So, the current scope that's out now is actually looking at covering the entire bridge so they can do all the works above. And we're the ones that sort of came up with that innovation in the first place.

Speaker #4: So, definitely in a good position.

Speaker #3: So, Peter, look, who knows? All we can flag here is that it's a big opportunity. We're an existing service provider that I know is very, very, very well regarded.

Steven Boland: Peter, look, who knows? All we can flag here is that it is a big opportunity. We are an existing service provider that I know is very well-regarded. We have got the capability of doing all of the work they need to get done by ourselves without needing to use subcontractors or have a JV partner. I think, I am just flagging, it is a big opportunity. They want to fast-track the work. They are running out of timeframe. I mean, this is a bit like this happens to be 2032, that is the centenary. They want the bridge to be lovely and shiny and.

Speaker #3: We've got the capability of doing all of the work they need to get done by ourselves, without needing to use subcontractors or have a JV partner.

Speaker #3: So, I think we're just flagging—it's a big opportunity. They want to fast-track the work. They're running into a time frame. I mean, this is a bit like—this happens to be 2032.

Speaker #3: That's the centenary. They want the bridge to be lovely and shiny, and...

Matt Caporella: They don't want any scaffolding on the bridge in 2032.

Speaker #4: They don't need scaffolding sitting on the bridge in 2032.

Speaker #3: They need to get it all done, right.

Steven Boland: Yeah, they need to get it all done.

Matt Caporella: Yeah.

Steven Boland: Right.

Speaker #7: Yeah, thanks for that. Yeah. And with the Brisbane Olympics work, if you do miss the stadium piece, just given the size of the overall construction, I mean, does it put you in a better position to pick up a lot of other work across the athletes' village and the other sections?

Peter Muller: Yep. Thanks for that. Yep. With the Brisbane Olympics work, if you do miss the stadium piece, just given the size of the overall construction, I mean, does it put you in a better position to pick up a lot of other work across the athlete village and the other sections?

Peter Moller: Yep. Thanks for that. Yep. With the Brisbane Olympics work, if you do miss the stadium piece, just given the size of the overall construction, I mean, does it put you in a better position to pick up a lot of other work across the athlete village and the other sections?

Speaker #3: It doesn't matter. I mean, there are a couple of things here. We've said pretty regularly that the stadium is obviously the showpiece to look great on the front page of your annual report.

Steven Boland: It doesn't matter. I mean, there's a couple things here. We've said pretty regularly that the stadium is obviously the showpiece that will look great on the front page of your annual report, but it's not the main game. We just happen to be in a position where one of the builders that's in one consortium, and their chosen form worker, if they win it, will work with us most likely. We just happen to be in that position. But it's by no means the be all and end all. My experience with this stuff is it's all the other ancillary work that the closer you get to the thing that where you get the best returns.

Speaker #3: But it's not the main game. Now, we just happen to be in a position where one of the builders that's part of one consortium, and they've chosen Formwork.

Speaker #3: If they win it, they'll work with us most likely. We just happen to be in that position. But it's why no one deal is the be-all and end-all.

Speaker #3: My experience with this stuff is it's all the other ancillary work that, the closer you get to the thing, that's where you get the best returns. And I think the other important thing to say about this—and I've read some narrative around this from people at different times, and we've said this—you don't gear up for 100% of this work.

Steven Boland: I think the other important thing to say about this, and I have read some narrative around this from people at different times, and we have said this, you do not gear up for 100% of this work. You just do not. You would be left with gear after 2032 that you do not need. So the key here is to pick the right amount of gear and leave the last 25% or 30% to somebody else. This business will be actively having that strategy. You do not want to be too late, and we will not be too late, but you also do not overcapitalize into that. So it is a big opportunity. I have lived through Sydney. I know what will happen.

Speaker #3: You just don't, because you should be left with the gear after 2032 that you don't need. So the key here is to pick the right amount of gear and leave the last 25 or 30% to somebody else.

Speaker #3: And this business will be actively having that strategy. You don't want to be too late, and we won't be too late, but you also don't want to capitalize into that too early.

Speaker #3: So, it's a big opportunity. I've lived through Sydney. I know what will happen. But it's going to be really critical to Acrow that we are very smart about how we do this.

Steven Boland: It is going to be really critical to Acrow that we are very smart about how we do this, and we target the work with the best returns, and as I said, we do not overcapitalize into that cycle. We will just make sure that what we are doing leaves the last bit for somebody else, and happy days for us going forward.

Speaker #3: And we target the work with the best returns, so we don't overcapitalize into that cycle. We just make sure that what we're doing leaves the last bit for somebody else—and happy days for us going forward.

Speaker #7: Yeah. Thanks for that.

Peter Muller: Yep. Thanks for that.

Peter Moller: Yep. Thanks for that.

Speaker #1: There are no further questions at this time. I will now hand it back to Mr. Bolen for closing remarks. Please go ahead.

Operator 2: There are no further questions at this time. I will now hand it back to Mr. Boland for closing remarks. Please go ahead.

Operator: There are no further questions at this time. I will now hand it back to Mr. Boland for closing remarks. Please go ahead.

Speaker #3: Okay, thank you again. I'm sorry for some of the technical hitches—hopefully it wasn't too bad. And again, we look forward to talking to you again at the AGM.

Steven Boland: Okay. Thank you again. I am sorry for some of the technical hitches. Hopefully it was not too bad. Again, we look forward to talking to you again at the AGM, at the half year results. So I thank Andrew and Matt for their participation and thank all of the listeners for taking the time to listen to our presentation. Thanks very much.

Speaker #3: That concludes our half-year results. I thank Andrew and Matt for their participation, and thank all of the listeners for taking the time to listen to our results presentation.

Speaker #3: Thanks very much.

Operator 2: That does conclude the conference call for today. Thank you for participating. You may now disconnect.

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

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