SKS Technologies (ASX: SKS) has significantly upgraded its FY26 profit guidance, lifting revenue expectations to $340 million and profit margins to 10%, driven by $60 million in new contract wins.
The electro-technology contractor recently secured $60 million in new contracts, bolstering its project pipeline.
These significant awards include work for the NEXTDC M3 Stage 4 data centre project and the Ernst & Young Melbourne office contract.
The new contract awards highlight the ongoing strong demand within the rapidly expanding data centre sector as the company's strategic focus on data centre infrastructure continues to prove effective, capturing material market share.
Revenue Guidance Up
Following these wins, SKS Technologies has lifted its FY26 revenue guidance to $340 million, an increase from the previous forecast of $320 million.
The company also upgraded its net profit before tax (NPBT) margin guidance to 10%, up from 9%, which translates to a projected profit before tax of $34 million, an increase from $28.8 million.
This robust performance has boosted SKS's work on hand to $325 million, providing strong earnings visibility for the period.
The company also reported a strong 94% repeat business rate in FY25, indicating high client satisfaction and recurring revenue streams.
Strategic Acquisitions Bolster NSW
Further strengthening its market position, SKS Technologies recently completed the acquisition of Delta Elcom Pty Ltd.
This strategic move significantly bolsters SKS's presence in the NSW data centre market.
Delta Elcom contributes approximately $25 million in annual revenue, accelerating SKS's market share growth in NSW data centres and related sectors.
This acquisition follows earlier agreements aimed at expanding SKS's footprint in key Australian markets.
FY25 Performance Sets Strong Base
The strong performance in FY26 builds on a solid foundation from FY25.
During FY25, SKS Technologies saw its revenue grow by 92% to $261.7 million, with a net profit after tax (NPAT) of $14 million.
The data centre segment was a key driver, with revenue reaching $140.7 million, accounting for 53.8% of total sales.
The company's work on hand at the end of FY25 stood at $200 million, underpinned by the impressive 94% repeat business rate.
The substantial contract wins and guidance upgrade highlight strong operational momentum for SKS Technologies, particularly within the data centre sector.
While the company's strategic acquisitions and organic growth position it for continued expansion, ongoing execution and integration risks will be key factors to monitor.
