Highlights

• Completed Acquisition of BroadReach Group for approximately A$4.3m in January 2026, adding scale and capability

• BroadReach reported A$8.96m Revenue and A$0.86m EBITDA for the year to June 2025

• Trailing twelve-month revenue of approximately A$55.6m with Blue-Chip clients including BHP, South32 and Woodside

• Director Geoffrey Lewis purchased 165,000 shares on-market in March 2026 — an insider confidence signal

StepChange Holdings Limited (ASX:STH) is a Perth-based SAP and change-management consultancy that listed on the ASX in July 2025, providing digital, strategy, technology and change-management services to Australia's resources and energy sector and beyond. With official SAP partner status and a client roster that includes BHP, South32 and Woodside Energy, the company has been consolidating the fragmented Perth advisory market through bolt-on acquisitions while working toward sustainable profitability at a Market Capitalisation of around A$20 million.

Latest Developments

StepChange Holdings delivered its maiden full-year results following the integration of BroadReach, highlighting the benefits of its expanded technology consulting platform. The company's strategy remains centred on combining organic growth with acquisitions and improving operating scale. Investors will likely focus on whether the enlarged Business can sustain revenue momentum, integrate acquired operations effectively and continue expanding EBITDA margins.

Understanding the Business

StepChange has been delivering digital, strategy, technology and change-management consulting services since 2003, well before its 2025 ASX listing. The group operates across three divisions: Leadership, Strategy & Change (program and project management, business analysis and organisational change); SAP & Applications, where StepChange holds official SAP partner status covering implementations, upgrades and integrations; and Technology & Innovation, spanning cloud services, data analytics, Cybersecurity and business intelligence. Its client roster leans heavily on Western Australia's resources and energy sector, including BHP, South32 and Woodside Energy, alongside diversified names such as Wesfarmers and a range of government agencies.

Industry Opportunity

SAP consulting in Australia's resources and energy sector is underpinned by the ongoing requirement to upgrade and maintain large enterprise resource planning systems as mining, oil and gas and energy companies manage complex global operations. The S/4HANA migration wave — where thousands of companies globally are upgrading from older SAP systems to SAP's next-generation cloud-capable platform — creates a sustained Demand for accredited SAP partners with deep industry knowledge. StepChange's positioning in the WA resources sector, where companies are running multi-billion dollar SAP transformation programs, gives it access to a high-value advisory market that rewards domain expertise over scale.

Key Risks

• BroadReach earn-out provisions tied to FY27 EBITDA targets create integration performance pressure

• Client concentration in the WA resources sector — any major Mining capex reduction would affect consulting demand

• Thin gross Margin of approximately 11% leaves limited buffer for cost overruns or revenue shortfalls

• Limited broker coverage and thin trading Liquidity make the stock difficult for institutional investors to engage with

• Competing Perth advisory boutiques targeting the same mining and energy client base

Key Catalysts to Watch

• FY27 full-year results showing the first complete-year contribution from BroadReach, demonstrating Earnings accretion

• BroadReach earn-out targets being achieved, validating the acquisition rationale and management's integration capability

• New SAP engagement or major project win from existing blue-chip client relationships

• Gross margin improvement as the enlarged business achieves scale and pricing leverage

• Additional bolt-on acquisition completing the Perth advisory market consolidation strategy

Conclusion

StepChange Holdings (ASX:STH) is executing a focused consolidation strategy in the SAP and technology consulting space, targeting the WA resources sector's ongoing demand for advisory and implementation services. The BroadReach acquisition adds meaningful revenue scale, and the blue-chip client list provides credibility well beyond the company's A$20m market capitalisation. FY27 will be the defining year — it's when BroadReach's full-year contribution will be visible and the earn-out performance will test whether management's integration thesis was sound.