Although there are no pureplay ASX Electric Vehicle makers listed on the ASX, investors keen to indulge in the sector may go for indirect exposure, where lithium stocks are gaining attention. However, since the lithium sector is currently down, another opportunity is coming up. These are the energy infrastructure companies which will become more relevant as they will power the EVs.
IPD Group Limited (ASX: IPG)
IPD Group Limited has demonstrated a strong financial performance for the half-year ended 31 December 2024 surpassing its earnings guidance with impressive record revenues and profits. This strong growth trajectory is a testament to the effective execution of its initiatives particularly the key acquisitions made in the preceding financial year.
The Group recorded revenue of $176.9M for the half-year marking a substantial 46.6% increase over the previous corresponding period. Revenue grew by 2.3% on a pro-forma basis. Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) also saw a significant rise of 46.6% to $23.6M successfully maintaining EBITDA margins at 13.3%. Net Profit After Tax (NPAT) increased by 40.0% to $13.3M and Earnings Per Share (EPS) grew by 19.4% to 12.9 cents highlighting the accretive nature of recent acquisitions.
Furthermore, operating free cash flow before interest and tax outflows significantly increased to $25.3M for 1H FY25 showcasing an impressive conversion rate of 107.6%. This strong cash generation capability facilitated a reduction in net debt to $2.2M as of 31 December down from $8.8M at 30 June. Subsequent to the reporting period the Group further repaid $10.0M of core debt reducing its acquisition debt facility to $21.1M and declared a fully franked interim dividend of 6.4 cents per share representing a 39.1% increase on pcp.
IPD Group is positioned to leverage emerging opportunities despite facing macroeconomic headwinds in certain end markets particularly within the commercial construction sector which impacted CMI Operations' gross revenues. The company is experiencing robust growth in sectors such as data centers where revenue increased by 25% as a percentage of FY24 revenue. Other significant growth drivers include the ongoing transition to renewable energy, the expanding infrastructure for EV charging, the electrification of public transport, and a supportive legislative environment. IPD's diversified product portfolio enables it to effectively pivot towards these burgeoning sectors contributing to a 5.2% gross revenue increase for the core IPD business on a pro-forma pcp.
GenusPlus Group Limited (ASX: GNP)
GenusPlus Group Ltd has demonstrated exceptional performance in the first half of FY2025 achieving record financial results. The company reported a record revenue of $333M marking a significant 33% increase from the previous corresponding period (PCP). This strong top-line growth was accompanied by a record Normalised EBITDA of $27.4M up 25% on PCP, and a record Statutory Net Profit After Tax (NPAT) of $13.7M surging by 51% from the PCP. Operational efficiency also improved with net cash provided by operating activities reaching $24.5M (a 26% increase).
GenusPlus has expanded its capabilities through key acquisitions. The company completed the acquisition of MGC Group Holdings Pty Ltd on 17 April which introduces them to the rail sector. GenusPlus acquired CommTel Network Solutions Pty Ltd in October 2024 for approximately $6M bolstering its communications segment and Partum Engineering Pty Ltd in December 2024 for $12M (cash and shares) expanding its specialized design services. These acquisitions alongside the integration of Geographe Tree Services underscore a commitment to diversification and a truly national business footprint.
The outlook for GenusPlus remains robust supported by a substantial orderbook and pipeline. The company forecasts at least 20% EBITDA growth for FY2025. A record orderbook of $1.5B significantly up from $0.5B in June 2024 alongside a strong tendered pipeline of $2.2B and over $4B in budget and opportunity leads provides a solid foundation for sustained earnings growth. Notably, GenusPlus secured a $270M contract for Western Power's Clean Energy Link project commencing in January 2025. The company is well positioned to capitalize on Australia's energy transformation with significant tailwinds from the "Rewiring the Nation Program" and increasing investment in renewable energy and transmission networks.
(Source: Company Announcements)
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