Acrow FY26 slides: revenue surges 27%, margins compress on mix shift

Acrow Ltd reported a 27% surge in revenue to $336.0 million for the FY26, despite a 20% drop in underlying net profit to $27.6 million. This marked a mixed financial result for the construction services provider, with shares falling 5.15% to $0.92 after trading above its 52-week high of $1.165. The company's strategy of shifting towards industrial access work resulted in compressed profitability.

EBITDA remained flat at $80.3 million, leading to a 640 basis point decline in EBITDA margin from 30.3% to 23.9%. Despite challenges, management remained optimistic, projecting EBITDA growth of 37% for FY27. Industrial Access division, which now accounts for 60% of total revenue, witnessed a 53% revenue increase to $200.9 million and an 18% EBITDA margin.

This division's growth, driven by acquisitions and organic expansion, posed margin pressures compared to Construction Services division, which reported flat revenue but a decline in EBITDA.