Korvest (ASX:KOV) Enters FY27 With Record Revenue And Order Book

Aditi Sarkar

10 August 2026 05:08 PM AEST

Korvest (ASX:KOV) Enters FY27 With Record Revenue And Order Book

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Highlights

Korvest lifted FY26 Revenue 8.3% to a record AUD 129.54mn.
NPAT eased to AUD 12.412mn as remediation costs weighed on the year’s result.
Capital expenditure rose to AUD 11.309mn as the company completed its largest Investment programme to date.
Management entered FY27 citing record levels of work on hand, supported by tunnel and data-centre activity.

Korvest (ASX:KOV) has emerged from FY26 with two contrasting signals: record revenue and a softer bottom line. The difference largely reflects one-off remediation costs and the largest capital investment programme in the company’s history. With the new Kilburn factory completed in July 2026 and management citing record levels of work on hand, FY27 shifts the focus from building capacity to converting that capacity into revenue and margins.

Company Overview

Korvest is a South Australian industrial group operating across cable and pipe support systems and hot-dip galvanising. Its Industrial Products division is anchored by the EzyStrut brand, while Korvest Galvanisers provides corrosion-protection services for steel used across mining, oil and gas, communications, transport and energy projects. The company has been listed on the ASX since 1970 and operates from Kilburn in Adelaide, with branches in Queensland, Western Australia and New South Wales.

Recent Developments: Revenue Reaches a New High

FY26 revenue increased 8.3% to AUD 129.54mn, while profit before tax was AUD 17.883mn. NPAT declined to AUD 12.412mn from AUD 13.157mn a year earlier, and basic EPS eased to 104.9 cents from 112.0 cents.

The profit decline was influenced by remediation costs linked to a third-party design fault in the Industrial Products segment. Korvest expensed AUD 566,000 in FY26 after previously recognising AUD 869,000. Settlement negotiations concluded in July 2026, with the supplier agreeing to pay Korvest AUD 1.1mn, which is expected to be recognised as other income in FY27.

Financial Snapshot: Heavy Investment Reshapes the Balance Sheet

Capital expenditure reached AUD 11.309mn in FY26, more than three times the AUD 3.694mn spent in FY25. Spending covered a new 3,500-square-metre Kilburn factory, relocated Queensland and Western Australian branches and additional Warehouse capacity in New South Wales.

The programme moved Korvest from AUD 13.03mn of cash at the end of FY25 to a bank overdraft of AUD 1.543mn at 30 June 2026. Total Assets stood at AUD 101.731mn and total liabilities at AUD 36.919mn, leaving net assets of AUD 64.812mn. The board declared a fully franked final dividend of 40 cents per share, taking total FY26 distributions to 75 cents per share.

Sector Context: Infrastructure and Data Centres Shape Demand

Korvest’s products sit inside Australia’s infrastructure supply chain, where Demand can be influenced by major construction cycles. Management has highlighted known and ongoing road and rail tunnel projects as well as the Volume of data-centre construction in Australia. Data-centre activity is expected to support both Industrial Products and galvanising demand.

Within the group, Industrial Products generated FY26 revenue of AUD 118.348mn and segment profit before tax of AUD 17.075mn. The Production Group delivered revenue of AUD 11.192mn and segment profit before tax of AUD 2.386mn, while processing record tonnage.

What to Watch

Execution against the record work on hand is the central FY27 test. The company is also progressing Phase 2 of the Kilburn expansion, expected to cost around AUD 4mn, including at least AUD 2mn in FY27. Planned additions include roll formers, a laser cutter, weld bays and a powder-coating line.

The AUD 1.1mn supplier settlement will provide a one-off contribution to FY27 other income, but the more important question is whether new capacity and project demand translate into higher underlying earnings. Korvest’s Annual General Meeting is scheduled for 30 October 2026.

Risks

Major project timing can fluctuate and may affect how quickly the order book converts into revenue. Energy costs are relevant to the galvanising business, while freight and logistics costs can move with global conditions. The company has also shifted from net cash to an overdraft after its large Capital programme and still has Phase 2 spending ahead. As a smaller ASX-listed industrial company, share Liquidity can also be lower than for larger peers.

FAQs

Q: What was Korvest’s FY26 revenue?

A: Korvest reported record FY26 revenue of AUD 129.54mn, up 8.3% from the prior year.

Q: Why did Korvest’s FY26 profit decline?

A: NPAT fell to AUD 12.412mn, with remediation costs linked to a third-party design fault contributing to the decline.

Q: What is driving Korvest’s FY27 outlook?

A: Management has cited record levels of work on hand, with road and rail tunnel activity and data-centre construction supporting demand.

Q: What is Korvest investing in next?

A: Phase 2 of the Kilburn build-out is expected to add manufacturing equipment including roll formers, a laser cutter, weld bays and a powder-coating line.

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