Tasmea has lifted its half-year revenue above $400 million for the first time after bolting on workforce solutions firm WorkPac late last year.
The industrial services company grew its revenue base by 62 per cent over the six months to December 31, while its sales costs jumped 76 per cent to just over $300,000.
On an underlying basis, Tasmea’s earnings (EBIT) grew 36 per cent to $44 million.
Strip out WorkPac's one-month revenue contribution of $77.4 million and the group still grew 31 per cent, which it claims shows momentum across its electrical, civil, mechanical, water and fluid divisions.
Tasmea’s underlying net profit after tax rose 32 per cent to $26.6 million, while its statutory NPAT fell to $22.3 million from $27.9 million in the prior corresponding period.
It’s worth noting that last year's profit included a one-off deferred tax asset recognition and a derivative fair value gain, together worth $3.1 million in tax relief.
The company’s net debt fell to $67.8 million by the end of the half (down from $110.9 million six months prior) as it leveraged stronger operating cash flows and a $43 million September placement.
It operates 26 specialist trade businesses and employs more than 8,000 people.
Tasmea’s board declared a fully franked interim dividend of 6 cents per share, up 20 per cent on the prior year and payable on April 10.
Its December acquisition of WorkPac, founded in 1997 by Phil Smart, was the defining move of the half.
Tasmea paid around $50.2 million for the business upfront, offering $22.7 million in cash and the remaining $27.5 million in scrip to issue five million new shares at $5.50 apiece.
The deal established a new workforce solutions segment within the group.
Tasmea said its WorkPac buy was in direct response to labour constraints emerging across the business.
“During H1 FY26, several specialist subsidiaries for the first time in some time [sic] experienced labour constraints,” the company wrote in its half-year financials.
“[This] is only anticipated to become further problematic across Australia in the coming years.”
Tasmea said WorkPac’s recruitment platform is already supporting more than 140 live specialist trade roles across the group, and management has identified around $2 million in cost synergies expected to be fully realised by FY27.
Management reaffirmed its full-year financial guidance, forecasting $117 million in earnings and $72.5 million in net profit for FY26.
Even so, Tasmea shares were down close to 7 per cent at lunchtime, worth $3.50 in a $911 million market cap.
