Seven Group Holdings (SGH) is a diversified Australian operating group with market-leading positions across industrial services, energy, and media. Its portfolio includes WesTrac, Boral, Coates, SGH Energy, and strategic stakes in Beach Energy and Seven West Media. These businesses provide SGH with exposure to long-duration demand themes across mining production, construction activity, infrastructure investment, and domestic energy supply.
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The company delivered revenue of $10.74b in FY25, up 1%, with underlying EBIT rising to $1.54b, an 8% increase driven by earnings growth at WesTrac and Boral. Net profit after tax climbed 9% to $924m, while operating cash flow surged 49% to $1.95b as all industrial services divisions delivered cash conversion above 90%. SGH also reduced leverage to below 2x EBITDA, demonstrating strong balance sheet discipline.
Management highlighted another year of consistent outperformance, supported by the SGH Way, a structured operating model focused on execution, capital discipline, and sustained value creation. FY25 total shareholder return reached 46%, outpacing the ASX100’s 15%, while SGH’s 10-year TSR exceeded 1,000%.
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Financial Story
SGH’s FY25 performance reflected resilient demand across its industrial services businesses despite mixed market conditions. WesTrac continued to benefit from strong capital sales, posting 4% revenue growth and $639m of EBIT, while Boral delivered a standout 26% EBIT increase supported by pricing traction and improved margins. Coates faced softer conditions, with revenue down 9%, though margins remained globally competitive, illustrating the strength of its operating discipline.
Energy earnings improved at Beach Energy, with higher production, LNG cargoes, and cost efficiencies lifting underlying NPAT by 32%. SGH Energy advanced its major projects, including the Crux LNG development, where drilling is complete, and first gas is expected in CY27. SGH also continued to progress the Longtom gas asset, which holds independently verified reserves of ~87 PJ.
Cash flow strength remained a key highlight. Operating cash flow reached $1.95b, up 49%, and EBITDA cash conversion hit 95% on improved working capital management across WesTrac, Boral, and Coates. SGH’s capital structure strengthened further with leverage reduced to 1.99x EBITDA and extended maturities, leaving $1.9b in available liquidity heading into FY26.
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Broader Market Context
SGH benefits from exposure to long-term industrial and energy demand drivers. Mining production forecasts remain robust, with Australian iron ore volumes expected to grow over the decade and coal exports to hold steady. A $1.7t national pipeline supports infrastructure and construction activity, while residential recovery is projected into CY26 as interest rates moderate. These themes provide sustained demand for WesTrac machinery, Boral building materials, and Coates equipment rental.
Energy markets also support the company’s long-term outlook. Domestic gas supply remains tight, while global LNG demand continues to expand with downside supply risks. Beach Energy’s improved cost structure and SGH Energy’s Crux project offer leverage to pricing and supply conditions. Combined with SGH’s media holdings benefiting from digital growth at Seven West Media, the group enters FY26 with a diversified earnings base linked to resilient sector fundamentals.
1. Industrial Services Momentum
WesTrac delivered another year of steady performance, supported by strong capital sales from fleet expansion and replacement programs. Installed mining fleet age continued to rise, reinforcing long-term demand for maintenance and rebuild services. Although average parts pricing moderated, cost control and improved rebuild capacity helped sustain profitability. Coates demonstrated discipline through cost efficiencies and targeted network rationalisation, while Boral’s margins expanded significantly on pricing traction and operational improvements.
Industrial services remain SGH’s core earnings engine, representing more than two-thirds of EBIT. With infrastructure activity stable and mining production expected to remain elevated, the company sees further upside from improved sales execution, operating leverage, and efficiency initiatives. FY25 results show SGH’s ability to extract value across cycles, and management expects this momentum to carry into FY26.
2. Energy Growth and Strategic Optionality
Beach Energy delivered higher production, revenue growth, and a 32% uplift in underlying NPAT as improved asset performance and reduced operating costs boosted margins. LNG cargoes from Waitsia and progress on Moomba CCS added diversification and strengthened long-term positioning. SGH’s shareholding in Beach continues to offer leverage to East and West Coast gas markets.
SGH Energy advanced its major development projects. Crux, the backfill project for Prelude FLNG, is progressing with first gas expected in CY27, while Longtom remains a strategic domestic gas source tied to existing infrastructure. These assets provide SGH with optionality in markets where supply constraints and growing LNG demand create favorable economics.
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3. Cash Discipline and Portfolio Strength
FY25 operating cash flow of $1.95b supports the company’s ongoing deleveraging and capital deployment strategy. Leverage fell below 2x EBITDA, and SGH extended funding maturities to FY29 and beyond, giving the group flexibility to invest across its industrial businesses or pursue opportunistic acquisitions. SGH also lifted its fully franked dividend by 17%, reflecting confidence in its cash generation.
The portfolio continues to benefit from diversification, with earnings contributions from industrial services, energy, and media reinforcing SGH’s resilience. Seven West Media remained the #1 total TV network for the fifth consecutive year, while its digital platform, 7Plus, posted strong user and revenue growth. This diversified exposure supports SGH’s ability to compound value over long periods.
The TIKR Takeaway
SGH’s FY25 results show a company delivering consistent growth through disciplined execution and diversified earnings drivers. TIKR’s tools make it easy to analyze SGH’s long-term performance, review segment-level trends, and compare the company’s valuation against peers in industrials and energy. Investors can quickly track margin expansion, leverage metrics, and cash flow strength, helping to assess whether SGH’s steady compounding can continue into FY26.
Should You Buy, Sell, or Hold Seven Group Holdings Stock in 2025?
SGH enters FY26 with stable industrial demand, improving energy fundamentals, and strong cash generation. Management’s guidance for low- to mid-single-digit EBIT growth reflects a balanced outlook, acknowledging softer conditions in some markets but strong momentum at Boral and Beach Energy. The group’s track record of outperforming the market, combined with operational discipline and a strengthening balance sheet, supports a constructive medium-term view.
While valuation always matters, SGH’s consistent execution, long-duration demand exposure, and diversified earnings profile support steady long-term compounding. For investors watching the industrials sector, SGH remains a high-quality operator with multiple paths to continued value creation.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
