The SGH Ltd (ASX: SGH) share price is down 7% after reporting its FY26 result and giving FY27 guidance.
SGH has multiple divisions including WesTrac, Boral, Coates, energy and media. Some of that exposure is through its investments in Beach Energy Ltd (ASX: BPT) and Southern Cross Media Group Ltd (ASX: SXL).
FY26 result
Here are some of the highlights from the 12 months to 30 June 2026:
- Revenue declined 2% to $10.56 billion
- EBITDA (EBITDA explained) climbed 2% to $2.08 billion
- EBIT rose 1% to $1.55 billion
- Underlying net profit flat at $920 million
- Statutory net profit up 35% to $655 million
- Dividend per share up 3% to $0.64
- Share buyback of $500 million
What happened during the result?
There are a lot of moving parts to the business, so let’s look at what drove the numbers.
WesTrac EBIT rose 1% to $647 million despite revenue falling 6%. This reflects the “normalisation of mining equipment sales”, offset by continued growth in product support, with services revenue up 6% thanks to the growing and ageing installed machine base, parts volume growth, increasing demand for rebuilds, and strong underlying mining production.
Boral EBIT rose 14% to $535 million on 5% of revenue growth. Its growth was broad-based, with earnings up across all regions. Concrete and quarry volumes traded above last year at improved selling prices. Costs were controlled.
Coates EBIT fell 7% to $270 million. SGH said this was resilient in variable market conditions, through proactive cost control, improving asset utilisation and operational efficiency initiatives.
Energy EBIT declined 21% to $104 million. It noted that Beach Energy commenced production from the Waitsia Gas Plant, which achieved its expected capacity of 250TJ per day in April 2026. This is one of Australia’s largest onshore gas projects.
Media EBIT fell 30% to $30 million.
Outlook for the SGH share price
The company said its medium-term outlook is supported “by long-duration demand across its core end markets, including a $1.7 trillion five-year infrastructure and construction pipelnie and continued growth in mining production.”
SGH noted it’s exposed to the fast-growth area of data centre construction through standby and prime power generation at WesTrac, concrete at Boral, equipment at Coates and gas across its energy interests.
It expects to deliver flat to low single digit EBIT growth in FY27.
Despite its decline today, it’s still above its 2026 share price low, so I don’t think it’s at the best price to invest. I think there are better opportunities elsewhere, at this stage. But, I’m pleased to see the share buyback announcement.
