Highlights

  • SCEE raised its underlying FY26 EBITDA guidance from A$72 million to at least A$75 million and issued inaugural FY27 EBITDA guidance of at least A$100 million, representing a 33% increase.
  • The company announced new works awards totalling over A$150 million, including initial works at NEXTDC's S4 Data Centre in Horsley Park, NSW, and a three-year master agreement with Rio Tinto for Pilbara operations.
  • A fully underwritten institutional placement of A$150 million was launched at a bookbuild range of A$3.85 to A$4.00 per share, alongside a non-underwritten share purchase plan targeting up to A$15 million.

 

 

Southern Cross Electrical Engineering Limited (ASX:SXE) entered a trading halt on 15 June 2026 to announce a combination of new contract wins, upgraded earnings guidance, and an equity raising that collectively repositions the Perth-based electrical contractor for a significantly enlarged scale of operations. The timing of these announcements together underlines how the structural tailwinds driving demand for electrical and data infrastructure are converging on SCEE's core capabilities in ways that management is now seeking to capitalise on with additional capital and operational capacity.

New Works Awards: Data Centres, Manufacturing and Mining

The announced works awards of over A$150 million span three distinct end markets, reflecting the diversification of SCEE's contract pipeline. The most high-profile of the three is the limited Letter of Authorisation from Multiplex Constructions to commence initial electrical and communications works on the first stage of NEXTDC's S4 Data Centre at Horsley Park in western Sydney. When complete, the S4 campus is anticipated to provide approximately 124,000 square metres of technical space and 350 megawatts of IT capacity, making it one of the largest data centre developments in Australia.

SCEE's Heyday subsidiary had been engaged with Multiplex and NEXTDC on this project since 2024, providing cost planning, concept development, and technical advisory services before securing the works authorisation. This early-engagement model — building a technical relationship with the project's construction manager and end client before formal contract award — is a characteristic approach for large data centre projects where the electrical and communications scope is too complex and value-accretive to be treated as a late-stage procurement decision.

The second award, to SCEE's Trivantage Manufacturing subsidiary, involves the supply of Low Voltage Switchroom Skids to a major data centre operator in Western Sydney. These skids integrate multiple switchboards, Uninterruptible Power Supply systems, and interconnecting cabling within prefabricated modular enclosures — a product format that is gaining traction in data centre construction as operators seek to compress timelines and improve quality control. Manufacturing has already commenced and is expected to complete during FY27. The third award is a three-year Master Construction Agreement with Rio Tinto for Electrical, Instrumentation and Controls works across the mining giant's Pilbara iron ore operations, extending a continuous relationship that SCEE describes as spanning nearly four decades.

EBITDA Guidance: Upgraded Present, Ambitious Future

The upgrade of FY26 underlying EBITDA guidance from at least A$72 million to at least A$75 million reflects performance in the second half of the financial year that has exceeded earlier internal projections. The new minimum threshold represents an improvement of approximately A$3 million at the lower bound, which while modest in absolute terms carries significance given that SCEE had only recently established its FY26 guidance range.

More consequential for investors is the inaugural FY27 EBITDA guidance of at least A$100 million. At the respective minimum thresholds, this implies year-on-year growth of approximately 33% — a growth rate that would be exceptional for most industrial services companies. The FY27 figure incorporates the expected contribution from the newly announced works awards, anticipated near-term wins in the data centre and other sectors, and the earnings leverage expected from the company's expanded manufacturing capacity in Trivantage's facilities across Sydney, Brisbane, and Melbourne.

Capital Raising: Funding the Pipeline and Acquisition Optionality

The A$150 million fully underwritten institutional placement was launched at a bookbuild range of A$3.85 to A$4.00 per share, representing a discount of 4.2% to 0.5% against SCEE's last traded price of A$4.02 on 12 June 2026. The floor price of A$3.85 is underwritten, providing a degree of certainty for the company's capital planning. An additional non-underwritten share purchase plan targeting up to A$15 million will be offered to eligible existing shareholders, with the SPP expected to open on 23 June 2026 and close on 7 July 2026.

Proceeds will fund working capital for the new awards and provide financial flexibility for future acquisitions that offer geographic diversification or new capabilities. The company has also received term sheets from Commonwealth Bank of Australia to increase its bank guarantee facility from A$75 million to A$100 million, add a new A$50 million revolving credit facility, and establish a A$50 million acquisition facility. Combined with the placement proceeds, these arrangements are expected to leave SCEE with pro forma liquidity of approximately A$308.8 million.

Operational Expansion and Leadership Investment

Beyond the capital initiatives, SCEE announced that Trivantage Manufacturing has entered into a five-year lease for a 7,000 square metre premise in Arndell Park, Sydney. Combined with new facilities in Brisbane and Melbourne announced earlier in the financial year, Trivantage Manufacturing has more than doubled its manufacturing floor space from 8,000 to over 17,000 square metres during FY26. This expansion directly supports the company's ability to fulfil the Switchroom Skid contract and future switchboard manufacturing programmes at the scale that large data centre clients require.

The company also announced the appointment of Peter Bierton to the newly created role of Chief Operating Officer for the SCEE Group. Bierton brings over 15 years of executive experience in infrastructure and services businesses including Zinfra, CIMIC, and Downer, and most recently served as Chief Executive of Mainmark. His appointment signals that SCEE is consciously building senior leadership bandwidth to manage a business that is becoming considerably larger and more operationally complex.