Acrow Limited Delivers Record $265.1M FY25 Revenue, Driven by Industrial Access Growth

About Acrow Limited

Acrow Limited (ASX: ACF) is a leading provider of smart integrated construction systems across formwork, industrial access, and commercial scaffolding in Australia. The company also offers solutions, including falsework and shoring, screen systems, Jumpform technology, and engineered services. With over 80 years of experience, Acrow has grown into a national leader, operating across 15 locations with more than 60,000 tonnes of equipment.

Financial Performance: Record Results and Balanced Growth

Acrow Limited delivered a strong set of results in FY25, with revenue reaching a record $265.1 million, representing a 23% increase on the previous year. This growth reflects both the strength of the company’s Industrial Access division and the benefits of targeted acquisitions. Underlying EBITDA increased by 8% to $80.2 million, while underlying net profit after tax (NPAT) rose by 4% to $34.3 million. Although earnings per share eased slightly by 3% to 11.17 cents, this was largely the result of a higher average share count.

The company declared a fully franked dividend of 5.85 cents per share, unchanged from the prior year, underscoring its commitment to delivering shareholder returns. Importantly, despite an increase in acquisitions and significant growth-related capital expenditure, Acrow maintained a return on investment of 41.8%. This performance sits comfortably above its 40% hurdle rate, demonstrating disciplined financial management and the ongoing profitability of its investments.

Strategic Developments: Industrial Access Leads the Way

The Industrial Access division was the standout contributor in FY25, recording an impressive 83% revenue uplift. It has now become the largest segment of the business, accounting for half of the total group revenue. Growth was driven both by acquisitions, including MI Scaffold, Benchmark Scaffolding, Above Scaffolding, and Brand Australia, and by strong organic performance. Long-term client relationships with blue-chip partners provided recurring revenue streams that added stability and predictability to group earnings.

Key contract wins reinforced the division’s momentum and cemented its role in supporting Australia’s industrial and infrastructure projects. These included a $42 million contract with the Saipem Clough Joint Venture for the Ceres Urea Plant in Western Australia, a minimum $60 million renewal agreement with BMA in Queensland’s Bowen Basin, and a $28 million extension with Origin Energy in the Surat Basin. Together, these wins highlight Acrow’s ability to deliver complex industrial access solutions at scale and expand its footprint across the country.

Growth Pipeline: Jumpform, Screens, and New Products

Beyond Industrial Access, Acrow continued to invest in platforms designed to underpin its long-term growth. The Jumpform business performed strongly, with revenue rising from $3.6 million to $10.4 million and 42 project wins since launch. Screens reported a modest decline in revenue to $15 million, primarily due to project delays in Queensland, but the division secured a 76% increase in contracted work, which is expected to translate into revenues exceeding $20 million in FY26.

Formwork and Commercial Scaffolding divisions experienced softer conditions, reflecting project delays and weaker demand in Queensland. Nevertheless, margins remained stable, reflecting disciplined cost management. Capital expenditure for FY25 totalled $39.7 million, with the majority directed toward growth initiatives in Jumpform, Screens, and Industrial Access. Looking ahead, FY26 capex is expected to reduce to approximately $27 million, of which $21 million will be focused on further growth investments.

Industry Context: Infrastructure and Olympic Tailwinds

Acrow remains well-positioned to capitalise on significant infrastructure opportunities across Australia. The lead-up to the Brisbane 2032 Olympics is expected to drive activity, alongside rising investment in transport and healthcare projects. While Queensland’s formwork market has remained subdued, activity levels are showing improvement in Western Australia and South Australia. To capture these opportunities, Acrow is planning to expand its Industrial Access footprint in these regions, supported by targeted organic growth initiatives.

Balance Sheet and Cashflow

The company strengthened its financial capacity during FY25 by expanding its banking facility to $171.3 million, providing additional headroom for growth initiatives and acquisitions. Net debt increased to $123.3 million, reflecting recent acquisitions and targeted investments, but gearing ratios remain within company guidelines. Operating cash flow stood at $57.6 million, translating to a healthy 71% conversion rate. Shareholders also benefited from $16.5 million in dividends paid during the year.

Outlook: Positioned for Sustainable Growth

Looking into FY26, Acrow expects its Industrial Access division to continue its strong trajectory, with revenues projected to approach $200 million. Growth will be supported by cross-selling opportunities into defence and infrastructure markets. The Screens and Jumpform businesses are also expected to expand nationally, with Western Australian projects providing particularly strong momentum.

Formwork conditions are likely to remain subdued through the first half of FY26, although recovery is anticipated over the medium term as new projects commence. The company also signalled a pause in merger and acquisition activity, allowing management to focus on consolidating its recent acquisitions and extracting synergies.

Overall, Acrow enters FY26 with a strengthened position, a diversified revenue base, and a clear strategy for sustainable growth. Its balance of recurring industrial contracts, innovative construction solutions, and exposure to long-term infrastructure projects places it in a strong position to deliver value for both customers and shareholders in the years ahead.