Company Interview / Stokes eyes acquisitions after strong Boral & WestTrac results

Key Points:

Net profit up 9% to $924 million, Ebit up 8%Strong performance from Boral (ASX:BLD) and WestTracDividend increased to $0.62 per share, up 17% year-on-yearCautious approach to future acquisitions with focus on strategic fit

Ryan Stokes from SGH (ASX:SGH) outlines the company’s robust financial performance, highlighted by a 9% rise in full-year net profit to $924 million and an 8% increase in Ebit to $1.54 billion. Stokes attributes this momentum primarily to operational improvements at Boral, which saw a 26% Ebit lift and continues to drive group growth. The company declared a fully franked final dividend of $0.32 per share, bringing the total dividend up 17% year-on-year to $0.62. Stokes emphasises the disciplined operating model and diversified business interests of SGH as key drivers allowing the group to counter sector-specific headwinds.

WestTrac contributed positively with a 2% increase in Ebit to $639 million, supported by strong resource sector activity and solid customer demand. Stokes notes that while new machine deliveries may moderate in FY26, service growth is expected to underpin continued expansion. SGH is guiding for low to mid-single digit Ebit growth in FY26, reflecting confidence in the positioning of Boral, WestTrac, and other core businesses.

On the investment front, Stokes mentions continued patience and discipline regarding acquisitions, guided by transparent criteria. Speaking on Seven West Media (ASX:SWM), where SGH holds a majority stake, Stokes highlights the challenges in the advertising sector but anticipates EBITDA growth in FY26 as digital initiatives gain traction.