In an ASX announcement and media release dated 19 August 2026, Southern Cross Electrical Engineering Limited (ASX:SXE), referred to as SCEE Group, presented its results for the 12 months to 30 June 2026. The group provides electrical contracting services and, through adjacent businesses, fire, manufacturing, security and communications services across the infrastructure, commercial and resources sectors.

The following sections summarise the release, outline the sector context referenced by the company, note the risks identified in the announcement and describe the next steps the company has set out.

Press Release Details

SCEE reported Revenue of $718.7 million, down 10.3 per cent on the prior year’s record $801.5 million. The company attributed the decline to the completion of the Collie Battery Energy Storage System project in Western Australia and the Western Sydney International Airport Terminal project during the first half. It said activity ramped up toward the end of the second half and that June was a record monthly revenue month for the group. More than 40 per cent of revenue came from adjacent non-electrical disciplines.

By sector, Commercial revenue was $247.2 million, up 62.1 per cent, with most of the increase coming from Force Fire’s industrial Warehousing and commercial building projects. Infrastructure revenue was $360.0 million, down 29.6 per cent, reflecting the completion of the two large projects. Resources revenue was $111.5 million, down 18.9 per cent.

Underlying EBITDA was $77.0 million, up 40.5 per cent, underlying EBIT was $64.4 million, up 40.3 per cent, and underlying net profit after tax (NPAT) was $39.4 million, up 24.3 per cent. Gross Profit was a record $136.7 million, up 29.1 per cent, and the gross Margin was 19.0 per cent compared with 13.2 per cent in the prior year. The company linked the margin movement to the outcome on the Collie project, the contribution from Force Fire and a more favourable project mix.

Statutory NPAT was $7.1 million, down 77.6 per cent from $31.7 million. The difference between statutory and underlying results relates to WestConnex dispute costs of $46.1 million. Heyday settled arbitration proceedings with the CPB Dragados Samsung Joint Venture over the WestConnex M5 tunnel project, paying $25.3 million in cash, writing off a $19.5 million contract asset and incurring $1.4 million in legal fees. These costs were excluded from underlying results.

The Board declared a final Dividend of 7.5 cents per share, fully franked, payable on 7 October 2026. With the 2.5 cent interim dividend, total FY26 dividends were 10.0 cents per share, a 33.3 per cent increase.

The cash balance at 30 June 2026 was $261.5 million, compared with $88.6 million a year earlier, supported by cash collection and a June institutional Placement that raised net proceeds of $144.7 million. A further $15 million was raised after year end through a Share Purchase Plan. Financing facilities were renegotiated, lifting bank guarantee and surety bond capacity from $150 million to $220 million and adding a $50 million revolving Credit Facility and a $50 million Acquisition facility. The group remained Debt free.

The order book at 30 June 2026 was a record $810 million, up 18 per cent. Infrastructure made up 70 per cent, more than 85 per cent was on the East Coast and about 30 per cent was in adjacent non-electrical disciplines. SCEE reported data centre revenue of $120 million in FY26 and said it is forecasting this to triple in FY27. The Board provided FY27 EBITDA guidance of at least $100 million, up 30 per cent on FY26 underlying EBITDA.

Sector Backdrop

The release places the group’s outlook within several construction and energy themes: data centre construction, infrastructure investment, renewable energy projects and electrification. SCEE cites an expectation that Australian data centre capacity will double from 1.6GW to 3.2GW by 2030 and potentially double again by 2035, within a range of 4.7GW to 7.4GW.

In infrastructure, the company points to the Western Sydney International Airport precinct, the new airport rail line and Sydney Metro West station developments. In healthcare construction it refers to hospital projects in New South Wales and the ACT. In energy, it notes battery energy storage awards, including the Steel River East project on the Ausgrid network, and further tendering for renewables developments.

Risks Shareholders Should Weigh

The statutory result shows the effect of a single dispute, and the release confirms that the WestConnex matter has been settled. Shareholders may note the gap between underlying and statutory profit when reading the figures, as the underlying measures are non-IFRS and exclude the dispute costs.

Revenue fell 10.3 per cent and both Infrastructure and Resources revenue declined. The FY27 guidance of at least $100 million EBITDA relies on growth that the company says will be both organic and acquisitive, and on data centre revenue tripling. The announcement states that the company does not currently anticipate material constraints on capturing this growth, but forecasts remain subject to project timing, tender outcomes and labour and materials availability.

What’s Next

The company has indicated that the final dividend is payable on 7 October 2026 and that it is working toward FY27 EBITDA of at least $100 million. It reports that work has commenced at the recently awarded NEXTDC S4 data centre and that it is tendering multiple large-scale opportunities, with further battery awards anticipated this year.

SCEE also states it is actively exploring actionable acquisition targets, supported by its cash balance and the new $50 million acquisition facility. Further updates are expected through ASX announcements.