Industrial suppliers report results that reflect infrastructure activity, steel costs and Capital spending. Korvest Ltd reported its annual result for the year ended 30 June 2026, with a Chairman’s statement dated 27 July 2026.

Company overview

Korvest Ltd (ASX:KOV) is an industrial products and galvanising company based in South Australia. Its Industrial Products segment includes the EzyStrut cable and pipe support business, supplying infrastructure projects and electrical wholesalers, and it operates a galvanising plant.

FY26 result and dividend

Revenue from trading activities was A$129.54 million, up 8.3%, driven by day-to-day and small project markets, with data centre development helping both segments. The final Dividend is 40.0 cents per share, fully franked (2025: 40.0 cents plus a 10 cent special), after a 25.0 cent interim. The Dividend reinvestment plan applies at a 5% discount, with payment on 25 September 2026 and a Record Date of 4 September 2026.

Projects, costs and the supplier settlement

Four major projects concluded in FY26, two commenced in the first half and three in the second, leaving four ongoing major projects into FY27. Final remediation costs of A$566,000 for a third-party design fault were expensed, adding to A$869,000 previously, and a settlement of A$1,100,000 agreed in July 2026 will be recorded as other income in FY27. Product pricing was adjusted late in the year for inflation, and branch moves raised costs.

Capacity expansion and outlook

FY26 was the largest Capital Investment program in Korvest’s history, including a new 3,500 square metre factory at Kilburn, completed in July 2026 within budget, with machinery to be commissioned in the first half of FY27. The galvanising plant processed record tonnes, and EzyStrut expanded Warehouse capacity in several states, including NSW for data centre construction. Korvest entered FY27 with record work on hand and will update trading at its AGM.

Segment commentary

In Industrial Products, EzyStrut supplies major infrastructure developments and electrical wholesalers and contractors for small industrial developments. The day-to-day and small project markets improved through FY26 with a firm second half in all states, and data centre development had a positive effect on both segments.

The cost environment for key inputs such as steel was relatively stable, although global events affected freight and logistics costs to varying degrees. Additional branch staff were added to manage increased activity and improve service levels.

Galvanising and capital program

The galvanising plant processed record tonnes in both internal and external volume, helped by strength in the South Australian steel fabricators market and completion of a second major renewable energy project after a similar project in FY25. During the Christmas shutdown the galvanising kettle was replaced and the burner management system upgraded, ahead of schedule, with improved gas consumption on a volume-adjusted basis.

FY26 was the largest capital investment program in the company’s history. Beyond the Kilburn factory, the Queensland and Western Australian EzyStrut branches moved to larger warehouses, and in June 2026 warehouse capacity was expanded in NSW to service the data centre construction boom in the Eastern states.

Sector backdrop

Cable support and galvanising Demand follow infrastructure, resources and data centre construction, with steel and freight costs as key inputs.

Cable support and pipe support suppliers benefit from construction of data centres, tunnels and infrastructure, which are sensitive to approval and funding timelines. Galvanising supports steel fabrication across infrastructure and renewable energy projects.

Dividend reinvestment plans issue shares at a discount, so participation affects the share count.

Risks shareholders should weigh

Results depend on project timing and major project supply, and four projects will run into FY27. Larger sites and higher rents increased the cost base.

The settlement income is not yet received. New factory machinery is yet to be commissioned.

Data centre and infrastructure demand may change.

The company spent significantly on capacity expansion, so returns depend on demand being sustained at higher levels of activity.

The A$1.1 million settlement is recorded in FY27 and is a one-off item that does not recur.

What’s next

Korvest will commission machinery at Kilburn in the first half of FY27 and provide a trading update at the AGM. Shareholders may wish to watch for those updates.

Korvest has said it will provide an update on trading conditions at its Annual General Meeting.