Key Highlights

• SGH Limited (ASX:SGH), the diversified group formerly known as Seven Group Holdings, reported its results for the year ended 30 June 2026 on 11 August 2026.

• Revenue was $10,564 million, down 2 per cent from $10,744 million.

• Underlying EBIT, a measure of operating profit before interest and tax, rose 1 per cent to $1,554 million.

• The EBIT Margin improved by about 40 basis points to 14.7 per cent.

What does SGH Limited (ASX:SGH)'s latest result say about a Business that is growing Earnings while its revenue edges lower? The short answer is that the group delivered modest underlying earnings growth in the 2026 financial year, strengthened its Balance Sheet and launched a share buy-back, but guided to only flat to low single-digit earnings growth for FY27.

The central development: steady earnings and a buy-back

SGH Limited (ASX:SGH), the diversified group formerly known as Seven Group Holdings, reported its results for the year ended 30 June 2026 on 11 August 2026. All figures below are in Australian dollars and come from the company's ASX release unless stated otherwise.

Revenue was $10,564 million, down 2 per cent from $10,744 million. Underlying EBIT, a measure of operating profit before interest and tax, rose 1 per cent to $1,554 million. The EBIT margin improved by about 40 basis points to 14.7 per cent. Underlying net profit after tax was $920 million, essentially unchanged on $924 million, while statutory net profit rose 35 per cent to $655 million.

What SGH does and where earnings come from

SGH is best understood as an operating group with investments attached. Its main earnings come from three businesses.

WesTrac is the Caterpillar dealer for Western Australia, the Northern Territory and New South Wales and the Australian Capital Territory. It sells and services Mining and construction equipment. It was the largest contributor, with EBIT of $647 million (up 1 per cent) on revenue of about $5.8 billion, which was 6 per cent lower.

Boral supplies construction materials, including aggregates, cement and asphalt, to infrastructure and building projects. Its EBIT rose 14 per cent to $535 million on revenue of $3.8 billion, up 5 per cent.

Coates is an equipment hire business. Its EBIT fell 7 per cent to $270 million on revenue of about $1.0 billion, down 3 per cent.

Together, industrial services generated EBIT of $1,453 million, up 4 per cent.

Energy and media: smaller, more variable contributors

SGH's energy segment, which includes the wholly owned SGH Energy and the company's stake of about 30 per cent in Beach Energy, reported EBIT of $104 million, down 21 per cent from $132 million. The release noted that the Waitsia gas project reached its nameplate capacity of 250 terajoules a day in April 2026. The release did not give a separate Beach Energy EBIT figure.

The media segment reported EBIT of $30 million, down 30 per cent from $42 million.

Both segments are exposed to Commodity prices and Advertising markets, so contributions can swing.

Cash flow, balance sheet and capital returns

Operating Cash Flow increased 6 per cent to $2.1 billion. Adjusted net Debt fell 10 per cent to $3.7 billion, and adjusted net debt to EBITDA improved to 1.8 times, which is below the company's through-the-cycle target of 2.0 times. Available Liquidity was about $2.0 billion and the effective borrowing cost was 5.6 per cent.

Capital expenditure was $788 million, including $368 million of growth spending.

The final Dividend was 32 cents per share, fully franked, bringing the full-year dividend to 64 cents, up 3 per cent from 62 cents.

On 22 June 2026, SGH announced an on-market buy-back of up to $500 million over the following 12 months. The company said Leverage had fallen below its target and that the buy-back was not expected to affect funding for organic growth or further investment. Timing and size depend on market conditions, so the amount ultimately repurchased is uncertain.

Sector conditions and competitive position

SGH's outlook commentary points to a large infrastructure and construction pipeline and continued growth in mining production. Both themes support Demand for heavy equipment, equipment hire and construction materials.

In competitive terms, SGH's resilience lies in its position in each market. WesTrac holds a long-standing Caterpillar dealership in its territories, Boral is a sizeable supplier of materials near major projects, and Coates is a large national hire provider. The company's "SGH Way" operating model is intended to lift productivity, though that depends on execution.

Risks and uncertainties

Several risks are worth weighing:

• Flat outlook: the company guided to flat to low single-digit EBIT growth for FY27, a modest ambition after a year of flat underlying profit.

• Capital sales: WesTrac's revenue fell 6 per cent as capital equipment sales normalised, and they could soften further if mining customers slow spending.

• Construction cycle: Boral and Coates depend on activity in infrastructure, housing and commercial building, as well as on costs for energy, labour and materials.

• Commodity and advertising exposure: energy and media earnings both declined in FY26 and remain volatile.

• Debt: net debt of $3.7 billion keeps interest rates relevant.

• Buy-back execution: the programme is discretionary and may not be completed in full.

Upcoming developments

SGH's Annual General Meeting is scheduled for 13 November 2026 at 10:00am AEDT in Sydney, with a live webcast. According to the notice released on 9 October 2026, shareholders will consider the election of John Gillam, who became Chairman on 1 February 2026, and Vik Bansal, who joined the board on 1 April 2026. They will also vote on the re-election of two directors, an advisory vote on the remuneration report and a proposed grant of deferred share rights to Managing Director and Chief Executive Ryan Stokes.

Beyond the meeting, investors will be watching the buy-back, WesTrac's equipment sales and Boral's margins.