This report is an updated version of the report published on 23 September 2025 at 3:55 PM AEST.

Acrow Limited (ASX: ACF)

Acrow Limited is a provider of smart integrated construction systems across formwork, industrial services and commercial scaffolding in Australia. The company's portfolio is falsework and shoring, screen solutions, Jacking Systems (Jumpform), and internal engineering capabilities.

Recommendation Rationale – SELL at AUD 1.08

• Net Profit Declined in FY25: Net profit after tax from ordinary activities attributable to members down by nearly 9% YoY to AUD 23.27mn in FY25 vs AUD 25.35 in FY24. Net income dip was largely attributable to higher debt servicing costs, elevated depreciation and acquisition-related expenses. Net cash inflow from operating activities also decreased to AUD 31.91mn in FY25 vs AUD 32.54mn in FY24.
• Trading Near the Resistance: The stock has crossed its first resistance (R1) of AUD 1.063 recommended on 3 July 2025. Its 14-day RSI is showing a reading of ~62.44 (approaching overbought zone); hence, the stock may face some consolidation before scaling further upside.
• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, Price/Book) are higher than median of the Industrials sector.
• Market Risk: The formwork sector, especially in Queensland, has seen significant declines impacting revenues. Earnings growth is sensitive to the Australian construction market and government infrastructure budgets, which can fluctuate based on economic conditions.

ACF’s Daily Price Chart

Valuation Methodology: Price/Earnings Multiple Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the YoY revenue growth in FY25, YoY growth in underlying EBITDA in FY25, contract wins, and strategic acquisitions. For conducting valuation, the following peers included: Southern Cross Electrical Engineering Ltd (ASX: SXE), Symal Group Ltd (ASX: SYL), and Boom Logistics Ltd (ASX: BOL) have been considered.

Considering that the stock has crossed its R1 level, macroeconomic uncertainty, rally in share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 1.08, as of 23 September 2025 at 3:51 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 23 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.