Why Gowing Bros (ASX:GOW) booked a loss while Cobram Estate and SpaceX holdings gained value

Sonal Goyal

04 November 2026 10:09 PM AEDT

Why Gowing Bros (ASX:GOW) booked a loss while Cobram Estate and SpaceX holdings gained value

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Key Highlights

• Gowing reported a loss after tax for the year to 31 July 2026.

• Weaker Earnings from its surf hardware arm weighed on the result.

• A property Revaluation loss outweighed rent income.

• Reported profit and asset backing can move in different directions.

Gowing Bros (ASX:GOW) reported a loss after tax of A$3.49 million for the year to 31 July 2026 because weaker earnings from its surf hardware arm and a property revaluation loss outweighed rent, even as its investments in Cobram Estate and SpaceX rose in value.

The result shows a conglomerate whose reported profit and asset backing move in different directions.

A group of three businesses

Gowing Bros (ASX:GOW) has been listed since 1962 and describes itself as making Long-Term Investments and running property operations. Its mix is unusual: three shopping centres, a surf hardware manufacturer and distributor, a residential subdivision and a portfolio of strategic investments.

The shopping centres are Coffs Central, Port Central and Kempsey Central. Surf Hardware International sells brands including FCS, Gorilla Grip, Softech, Kanulock and Hydro.

What the FY26 numbers show

The report, published on 29 October 2026, shows a loss after tax of A$3.49 million against A$3.29 million a year earlier, or 6.48 cents a share. The preliminary report described the accounts as still being audited, and the auditor's opinion was not in the portion of the Annual Report read for this article.

Revenue excluding lot sales was A$57.7 million, from A$58.3 million. Rent in the Investment property segment rose to A$20.6 million, but a A$3.0 million unrealised revaluation loss trimmed the portfolio to A$191.3 million.

Shopping centre sales were broadly stable and centre earnings before interest, tax and Amortisation were slightly above last year. The Pacific Coast portfolio of the three centres was valued at A$186.9 million, against A$95.9 million of borrowings.

Surf Hardware International's Revenue fell to A$35.9 million and its segment loss widened to A$4.9 million, with weak global Demand and higher freight and raw material costs cited as pressures.

Where value is building

Strategic investments rose to A$68.9 million from A$61.5 million, led by Cobram Estate at A$29.0 million against A$23.2 million. Private Equity funds increased to A$7.1 million. These are directors' valuations rather than realised gains.

The company valued its SpaceX holding at A$2.7 million, compared with A$0.9 million. A letter dated 24 June 2026 said the shares were bought pre-listing since 2024 at a cost of US$600,000 and, according to the company, were worth US$2.755 million at 23 June 2026.

Net tangible Assets before tax on unrealised gains were A$3.86 per share, compared with A$3.87.

Capital, dividends and debt

The development segment result fell to A$0.7 million from A$1.5 million as Sawtell Commons lot sales dropped to A$1.1 million from A$2.5 million. The residential subdivision was valued at A$30.0 million, with A$6.12 million of associated borrowings.

Total borrowings rose to A$104.9 million from A$95.9 million, against total assets of A$339.8 million. An 18-month, A$10.4 million Commonwealth Bank facility, announced on 5 September 2025, funds civil works at the Sawtell Commons subdivision, where Stage 4 is now registered for sale.

Dividends for FY26 totalled 6.0 cents a share, fully franked, being a 3 cent interim paid on 23 April 2026 and a 3 cent final. The final has a Record Date of 19 October 2026 and a payment date of 6 November 2026, and the company describes it as sourced from listed investment company Capital gains.

The company also bought back 17,000 shares for A$35,000 during the year, and had 1,027 shareholders at 15 October 2026.

Risks and dates ahead

Surf Hardware International needs margins to recover, and management expects stronger gross margins in FY27. The domestic outlook is described as somewhat mixed depending on sector.

Because investments are carried at directors' valuations, a fall in the Market Value of Cobram Estate or SpaceX would reduce net assets. Higher borrowings also raise sensitivity to interest rates.

The Annual General Meeting is on 24 November 2026, and the final Dividend is due on 6 November.

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