Company Interview / SXE's $90m growth playbook

Key Points:

Southern Cross Electrical (ASX:SXE) has secured $90 million in new projects across renewables, education, and water sectorsCompany expects to benefit from strong tailwinds in data centres, infrastructure, and renewablesWorkforce flexibility and multidisciplinary expertise cited as strategic advantagesAcquisition strategy targets east coast expansion and further diversification

Southern Cross Electrical (ASX:SXE) is set to finish the year on a strong note, according to Graeme Dunn. Dunn outlines a series of project wins valued around $90 million across the renewable energy, education, and water sectors. Among the highlights is a battery energy storage system at Steel River in Newcastle for an Ausgrid subsidiary, with procurement now underway and works scheduled to commence in early 2025. Additionally, the business has secured electrical works for three new schools in the ACT, further reinforcing a longstanding relationship with builders and the education sector, along with a notable switchboards project in the water sector.

Dunn states that these wins demonstrate Southern Cross Electrical’s ability to leverage momentum from diverse industry tailwinds, naming data centres, infrastructure, and renewables as key growth drivers. Recent announcements include a Digital Data Centre project featuring in-house collaboration across multiple business units, and substantial electrical works on Sydney’s St Marys station as part of the Western Sydney Airport line. Ongoing BAU activities continue alongside these major projects, with work on the Atlassian and Tattersalls buildings in Sydney noted.

On valuation, Dunn expresses confidence that Southern Cross Electrical remains slightly undervalued, citing operational flexibility, a workforce exceeding 2,000, and robust acquisition plans, especially focussed on east coast expansion. Looking ahead, Dunn targets further data centre contracts and one or two strategic acquisitions in 2026.