SKS TECHNOLOGIES GROUP LIMITED (SKS)
Share Price Analysis and Chart

06/08/2025

1

Buy

$2.75

5.77%

SKS Technologies provided a trading update for FY25 where revenue of $259.5m was in line with guidance and Morgans' forecast. Profit before tax was 15% higher than the broker's estimate on improved operating leverage.

The broker sees the 8% profit before tax margin as sustainable, and upgraded its FY25-27 profit before tax forecasts by 15%.

The company didn't provided formal guidance for FY26 but based on backlog and pipeline, the broker expects solid demand going ahead.

Buy. Target rises to $2.75 from $2.30 on positive earnings revisions and roll-forward.

FORECAST
Morgans forecasts a full year FY26 dividend of 3.00 cents and EPS of 15.00 cents.

15/08/2025

1

Overweight

$2.91

11.92%

SKS Technologies delivered FY25 profit (PBT) of $20.8m, up 15.6% on prior guidance, with margins rising to 8% from a historical cycle average near 3%, highlights Wilsons.

The broker attributes the improvement to operating leverage from large data centre contract wins, with work-in-hand continuing to grow.

Around 40 years of operational experience and a strong presence in Victoria position SKS well to capture the surge in cloud and AI-driven infrastructure demand, suggest the analysts. This is supported by relationships with major operators and end-clients.

Wilsons sees sustained short- to long-term demand from non-linear growth in digital infrastructure capex, particularly as Australia lags the US AI cycle by 18-24 months.

Key catalysts include larger contract wins, successful staff recruitment, and potential M&A, suggests the broker.

Overweight rating maintained. Target rises to $2.91 from $2.36.

FORECAST
Wilsons forecasts a full year FY26 dividend of 7.10 cents and EPS of 15.80 cents.
Wilsons forecasts a full year FY27 dividend of 7.90 cents and EPS of 17.60 cents.