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• Revenue: $5.5 billion, up 2%.

• EBIT: $843 million, up 10%.

• NPAT: $508 million, up 7%.

• Operating Cash Flow: $821 million, up 15%.

• EBITDA Cash Conversion: Improved to 75%.

• WesTrac Revenue: $3.2 billion, up 8%.

• WesTrac EBIT: $352 million, up 5%.

• Boral Revenue: $1.8 billion, down 2%.

• Boral EBIT Margin: 14.3%, significantly up.

• Boral EBIT: $259 million, up 29%.

• Coates Revenue: $546 million, down 4%.

• Coates EBIT Margin: 28.6%.

• Beach Production Growth: 15% to 10.2 million bboe.

• Beach NPAT Growth: 37%.

• Seven West Media Revenue: $727 million, down 6%.

• Seven West Media NPAT: $37 million, down 41%.

• Interim Dividend: Increased by 30% to $0.30 per share.

• Net Debt: Increased by $248 million to $4.6 billion.

• Leverage Ratio: 2.18 times net debt to EBITDA.

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Release Date: February 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SGH Ltd (ASX:SGH) reported a 10% increase in EBIT to $843 million, driven by earnings expansion across WesTrac, Boral, and Beach.

• The company achieved a 15% increase in operating cash flow to $820 million, reflecting stronger earnings and improved EBITDA cash conversion.

• Boral delivered a significant 29% uplift in EBIT to $259 million, supported by pricing traction and performance improvement initiatives.

• Beach Energy reported a 37% increase in NPAT, driven by a 15% growth in production and a 20% reduction in operating costs per barrel.

• SGH Ltd (ASX:SGH) increased its interim dividend by 30% to $0.30 per share, marking the 30th consecutive period of stable or growing dividends.

Negative Points

• Seven West Media's revenue declined by 6%, leading to a 41% contraction in NPAT to $37 million.

• Coates reported a 4% decline in revenue, attributed to lower activity in Victoria and the sale of Coates Indonesia.

• The EBIT margin for WesTrac contracted slightly to 11.1%, impacted by a parts price reduction.

• SGH Ltd (ASX:SGH) faced a 14% increase in net finance expenses, largely due to increased net debt from the Boral acquisition.

• The company experienced a $32 million mark-to-market impairment of its Seven West Media investment, contributing to significant item losses.

Q & A Highlights

Q: Ryan, regarding Boral's EBIT margins of 14.3%, do you think these targets should be set higher? A: Ryan Stokes, CEO: We initially aimed for low teen EBIT margins, but we've seen significant performance improvements. While we're currently at low teens, we aim for mid-teens through FY26 and beyond. There's potential for further improvement, but it will take time.