Acrow H1 Earnings Call Highlights

24 Feb 2026, 21:06 by Teresa Graham · The Cerbat Gem

Acrow (ASX:ACF) used its first-half FY26 earnings call to emphasize how the group has evolved into a more diversified provider of access and construction services, with industrial access now representing the majority of revenue. Management said the result was heavily influenced by a sharp downturn in Queensland formwork activity, while growth in industrial access and an expanding pipeline underpinned full-year guidance.

Industrial access now the largest revenue contributor

Management said industrial access accounted for 62% of group revenue in the half, reflecting a strategic pivot over the last two years to diversify revenue streams. The company noted that industrial access revenue has “almost tripled” over two years through a combination of organic growth and acquisitions.

Two acquisitions completed at the end of the prior financial year—Above and Brand (now referred to as Acrow Infrastructure in the Hunter Valley)—were described as performing above expectations. Management said Brand’s overall margin is lower than the broader group’s industrial access margin, but that was reflected in the purchase price. Management also described Brand as a stable business with consistent monthly profit and long-term contracts, and said it is not expected to become a larger proportion of segment revenue going forward.

For the industrial access segment, management cited:

Gross profit margin of 35% and EBITDA margin of 21% for the half.
Some margin pressure tied to a contract that is “basically all labor,” producing a lower (but “acceptable”) labor margin, and the mix effect from Brand.
A larger labor hire order book, which management said is now in excess of AUD 300 million.

The company said it is seeing new opportunities in areas such as defense, marine, industrial mining, and asset maintenance, highlighting work on the Sydney Harbour Bridge and a bridge conversion project in Nowra that management described as a roughly AUD 2 million to AUD 3 million package.

Construction services pressured by Queensland formwork conditions

Acrow reported that it has reorganized reporting into two divisions: construction services (formwork, screens, Jumpforms, and commercial scaffold) and industrial access.

In construction services, management reported a AUD 4 million decline in revenue and a AUD 3 million decline in underlying EBITDA. The company attributed the decline primarily to Queensland formwork market conditions rather than market share loss, noting that Queensland revenue of AUD 14.4 million was AUD 6.8 million lower than the prior corresponding half.

Management also pointed to encouraging formwork growth in South Australia and Western Australia, describing the performance as evidence of the business’s ability to capitalize when local markets improve. Victoria showed a revenue decline tied to project profile changes, with management expecting a better second half in that state.

Looking ahead, management said Queensland trading conditions remained subdued in the third quarter, but it sees clearer signs of improvement in the fourth quarter. Acrow expects roughly a 25% increase in Queensland formwork revenue in the second half compared with the first half, with the uplift “heavily slated” to the last quarter of FY26.

Capital investment, leverage, and dividend decision

A major theme of the call was the company’s front-loaded investment program. Management said Acrow is investing less in “core formwork products” and more into industrial access, Jumpform, and screens. Screens were described as generating close to 100% ROI in the first year of operation, and management said the company is seeing roughly one turn of revenue per dollar of capital deployed in that category.

Total first-half capital expenditure was AUD 25.5 million, with second-half spending expected to fall to AUD 5 million to AUD 10 million. Management tied a significant portion of Jumpform-related spending to the Meriton Cypress project on the Gold Coast, which includes an “industry first” Column Climber system.

On the balance sheet, CFO Andrew Crowther said net debt rose from AUD 28.2 million to AUD 151.5 million, driven largely by growth-related items including capital expenditure and a working capital increase linked to expanding industrial access labor. Net debt to EBITDA increased from 1.8x to 2.2x, which management said is above its comfort level, prompting a plan to reduce leverage through lower capex, EBITDA growth, and working capital rationalization (including monetization of a higher inventory balance).

The company also reduced its interim dividend, declaring an interim dividend of AUD 0.02 per share, 100% franked, which management said reflects prudence given front-loaded capex and leverage. On the call, management said it considered other options, but chose to maintain a dividend while retaining cash for growth.

Financial results and significant items

For the half, Acrow recorded 23% growth in revenue, but management noted that other metrics were impacted by Queensland formwork conditions and segment mix. CFO Crowther reported:

EBITDA of AUD 38 million, down from AUD 39 million.
EBITDA margin of 24.4%, down from 30.8%, reflecting mix changes between industrial access and other activities.
Depreciation increased to AUD 14.7 million from AUD 11.5 million, linked to higher average PP&E following capex.
Net interest expense rose to AUD 6.6 million from AUD 4.7 million, as average debt increased.
Underlying NPAT of AUD 12.8 million, down from AUD 16 million.
Reported NPAT of AUD 6.5 million, down from AUD 9 million, with EPS down to AUD 4.16 from AUD 5.38.

Significant items totaled AUD 2.7 million, primarily tied to integration and restructuring costs associated with acquisitions (Brand, Above, and ATEC), ERP system work, and other items including a depot move. The CFO also discussed contingent consideration impacts, including an expense related to the MI earn-out, and noted amortization of intangibles from acquired brand and customer assets as an ongoing expense.

Product initiatives, screens growth, and guidance

Management highlighted several product and growth initiatives. The company said it launched its proprietary industrial scaffold system, Uni-Ring, in January 2025, with about 4,500 tonnes landed across Queensland, Western Australia, and South Australia, emphasizing IP ownership and compatibility with existing ring lock equipment.

It also introduced Powershore 60 in January 2026, with management describing immediate customer response, including AUD 220,000 in sales prior to product arrival and five projects expected to start at the end of March. Management said it is also targeting a “property insurance” propping segment by leveraging its existing fleet and propping products.

In screens, management said the business is tracking toward AUD 20+ million in revenue this year, up from AUD 15 million last year. The company expects a AUD 2 million to AUD 3 million EBITDA improvement from a Western Australian screens operation next year, as work won in recent months begins generating revenue around June.

For the Meriton Cypress project, management described a 78-storey tower build where Acrow’s Column Climber system will address 16 “mega columns,” using a mix of existing Jumpform kits and newly developed components. Management said the system is designed to be fully reusable for other towers (particularly above 50 storeys), though it acknowledged the initial project has been capital intensive and characterized it as an entry into a higher-rise market segment.

Acrow reaffirmed full-year guidance of:

Revenue of AUD 315 million to AUD 325 million (management said this would be 21% above last year).
EBITDA of AUD 80 million to AUD 84 million (management said this would be 2% above last year).

Management said the guidance range is influenced more by the timing of large sales—whether they land before or after 30 June—than by any single operating variable. It also said it expects Q4 FY26 to be the largest quarterly EBITDA contributor of the year “by quite some way,” with momentum carrying into FY27.

About Acrow (ASX:ACF)

Acrow Limited provides smart integrated construction systems across formwork, industrial services, and commercial scaffolding in Australia. It offers falsework and shoring systems; formwork systems; scaffolding systems; specialized construction systems, such as Acrow screens, jacking systems, and universal soldier systems; and hardware and consumables, which includes props, timber and ply, containment, and scaffold accessories. The company also provides engineering and design, and industrial and scaffold supply services.