Highlights

  • Southern Cross Electrical Engineering provides electrical, instrumentation, communications, security, fire and maintenance services.
  • FY2026 underlying EBITDA increased to A$77.0 million despite lower revenue.
  • The company reported a record order book of A$810 million at 30 June 2026.
  • Data centre activity became an important part of the company's FY2026 operations.

Southern Cross Electrical Engineering Ltd (ASX:SXE) is a national engineering services Business providing electrical, instrumentation, communications, security, fire and maintenance solutions. The company operates across resources, commercial and infrastructure markets, with data centre work becoming a growing part of its activities.

Recent Development

SXE reported FY2026 results in August 2026. Revenue was A$718.7 million, while underlying EBITDA increased 40.5 per cent to A$77.0 million and underlying net profit after tax increased 24.3 per cent to A$39.4 million. Statutory net profit after tax was A$7.1 million following settlement costs related to the WestConnex arbitration matter.

Business Operations

Founded in 1978 and listed on the ASX since 2007, SCEE Group operates through businesses including SCEE Electrical, Heyday Group, Datatel, Trivantage Manufacturing, MDE Group and Force Fire. Its activities cover resources, commercial and infrastructure projects.

Operational Position

The company's order book reached A$810 million, comprising resources, commercial and infrastructure work. At 30 June 2026, cash stood at A$261.5 million. SXE also reported that data centre revenue reached approximately A$120 million in FY2026 across facilities for hyperscale cloud providers.

Key Factors to Monitor

The company has provided FY2027 EBITDA guidance of at least A$100 million. Future updates may provide information on data centre activity, order book conversion, Margin performance and the deployment of available capital.

Risks

Engineering projects can be affected by labour availability, project timing, contract changes and disputes. The company also remains exposed to resources sector activity and the execution requirements associated with expanding data centre work.

Key Insights

Southern Cross Electrical Engineering's FY2026 results show a shift in operating mix, with data centre activity contributing to its project pipeline. Future company disclosures will provide further information on Earnings delivery, project execution and market conditions.