Highlights

  • SKS Technologies is targeting FY27 sales Revenue of approximately $500 million, up from $347.93 million in FY26, with profit before tax targeted at about $60 million.
  • Work on hand rose 56% to $312 million, while the broader tender pipeline stood at $1.69 billion, with around 87% relating to data centre work.
  • The company’s largest-ever contract, a $210 million hyperscale data centre project in Melbourne, underscores its growing exposure to data centre infrastructure.
  • Bank facilities were expanded 62.5% to $52 million, providing additional funding capacity to support continued growth and project delivery.

SKS Technologies (ASX:SKS) is heading into FY27 aiming to convert a rapidly growing data centre pipeline into another year of substantial revenue and profit growth, following a FY26 in which both metrics rose sharply.

Data Centre Pipeline Is the Primary Growth Driver

Data centre work already represents roughly 87% of SKS’s $1.69 billion tender pipeline, and the company’s largest contract to date — a $210 million hyperscale data centre project in Melbourne — illustrates the scale of individual projects now flowing through the business. Work on hand rose 56% to $312 million during FY26, providing a substantial base of secured activity heading into the new financial year.

FY27 Targets Point to Continued Rapid Growth

Management has flagged that the board believes FY27 sales revenue could reach approximately $500 million, up from $347.93 million in FY26, with profit before tax targeted at about $60 million compared with $39.35 million in FY26. Those targets would extend a multi-year growth run — SKS reported a four-year revenue compound annual growth rate of 50.8% — although converting the pipeline into recognised revenue at that pace will be the key execution test.

Delta Elcom Acquisition Expands Capacity

The completed and integrated acquisition of Delta Elcom expanded SKS’s presence in New South Wales and added experience in data centre infrastructure and integrated technology systems. The company has also established a 6,200-square-metre Facility in Melbourne’s north-west to support major projects, engineering, design, prefabrication and deployment — capacity investments that support the scale of growth management is targeting for FY27.

Funding Capacity Has Been Expanded to Support Growth

SKS expanded its bank facilities by 62.5% to $52 million, providing additional funding headroom as the Business pursues further growth and project delivery. That expanded capacity, combined with cash balances that rose 52.7% to $49.60 million in FY26, gives the company financial flexibility to fund the scale-up implied by its FY27 targets.

What to Watch

The pace at which the $1.69 billion pipeline converts into further order wins, progress on delivering the Melbourne hyperscale project and other large contracts, and whether the traditional business segment continues growing alongside data centres will be the key factors determining whether SKS meets its approximately $500 million FY27 revenue target.

Conclusion

SKS Technologies’ outlook for FY27 is built on converting its substantial data centre pipeline and record work on hand into continued rapid revenue and profit growth. With management targeting around $500 million in revenue and $60 million in profit before tax, the coming year will test whether the company can sustain the growth trajectory that has defined its recent performance.