Simonds Group has reported a net profit of $1.9 million for the first half of the 2025 financial year, despite lower revenue and ongoing weakness in the residential construction market. Earnings before interest, tax, depreciation, and amortisation rose to $13.6 million, up $1.5 million from the same period last year, as higher site start values and improved margins offset the decline in activity.
Revenue fell 5.6 percent to $318.1 million, reflecting lower site starts and subdued demand, particularly in Victoria. The company recorded 733 site starts for the half-year, down 23.8 percent from the previous year.
No dividend was declared for the half-year.
Chief executive David McKeown said the company remained focused on long-term growth despite market challenges.
“We are pleased to report a strong performance despite a challenging macroeconomic environment. This result underscores the resilience of our team and our focus on margin growth,” he said.
Acquisition to expand operations
Simonds has moved to strengthen its position in the home-building sector with the acquisition of Dennis Family Homes, a long-established residential builder operating in Victoria and New South Wales.
The company announced the acquisition on 31 January and expects to complete the deal in early March. The transaction is expected to increase site starts by 25 percent from the 2026 financial year, adding to Simonds’ pipeline of new builds.
McKeown described the acquisition as an “exciting step forward” that would expand the company’s market share and bring long-term value.
Improving margins despite lower volumes
Simonds reported a cash position of $7.8 million at the end of December, with total available liquidity, including banking facilities, at $32.4 million, an increase of $5.8 million from the prior year.
The company’s gross margin improved to $68.9 million, up from $67.9 million in the previous period, as it focused on higher-value builds. Operating expenses remained steady at $55.3 million despite ongoing investment in product development and new sales channels.
The company said site starts within its insurance division had fallen due to lower demand, but that it was shifting its focus to alternative growth areas.
