Eagle Materials(US:EXP)2025-08-29 00:00Financial Data and Key Metrics Changes - Revenue increased to $134 million, representing a 6% growth compared to the previous year [10][4] - Underlying EBITDA grew by 34% to $19.3 million, marking the strongest financial performance since the pandemic [10][11] - Underlying net profit after tax before goodwill impairment was $2.1 million, the first underlying profit since the pandemic [11][4] - Cash position improved by $2.8 million year-over-year [4] Business Line Data and Key Metrics Changes - The Skydive segment reported a revenue growth of 5% and underlying EBITDA growth of 27%, driven by improved volumes and site efficiencies [12][11] - Adventure Experiences segment saw a revenue increase of 7% and underlying EBITDA growth of 14%, with Treetops and Reef Unlimited leading the performance [15][16] - All business units reported improved earnings performance compared to previous periods [7] Market Data and Key Metrics Changes - The overall improvement in domestic and international tourism in Australia and New Zealand was a key driver for the group's performance [8][11] - The return of international visitation, particularly from the UK and Europe, was noted as a significant factor in trading performance [28] Company Strategy and Development Direction - The company will focus on four key areas: business performance improvement, sustaining trading momentum, future growth, and quality of the portfolio [23][24] - Plans for organic growth include new products and expansion of existing experiences, particularly in the marine and treetops divisions [25][26] - The company is actively looking for bolt-on acquisitions in the Outdoor Adventure and Marine segments [27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the trading outlook due to improved operating margins and a focus on direct bookings [35][36] - The company is optimistic about the recovery of the international market, particularly from China, and expects continued growth in inbound visitation [36][40] - Management acknowledged the impact of weather on trading but remains confident in the overall business performance [71] Other Important Information - The Board declared a fully franked dividend of $0.25, the first since FY 2018, reflecting confidence in future trading momentum [4][29] - The company maintained a modest net debt and gearing level, with a closing cash balance of CAD 11.1 million [18] Q&A Session Summary Question: What is driving the company's confidence? - The confidence stems from improved operating margins, increased direct bookings, and a positive outlook for international visitation [35] Question: How does the company manage skydiving operations across different locations? - The company can transfer customers and tandem masters between locations to optimize operations based on weather conditions [38] Question: What is the rationale behind the dividend declaration? - The Board felt confident in the trading performance and outlook for FY 2026, believing the company has the capacity to pay the dividend [53] Question: What are the expectations for the Skydive segment's recovery? - The company remains confident in recovering to pre-COVID levels, despite some changes in the business structure [56] Question: How is the company managing capital expenditures? - Maintenance CapEx is driven by scheduled activities, while growth CapEx is focused on strategic investments to support future growth [60]