Johns Lyng result ‘speaks to power of strategy’
Johns Lyng Group has reported earnings in line with revised guidance, supported by its core insurer-focused building services, steps to increase sales and a cost reduction program.
Group sales revenue rose 1.8% to $1.18 billion in 2024-25, but earnings before interest, tax, depreciation and amortisation (EBITDA) fell 2.1% to $126.8 million.
The revised guidance – made after a slump in first-half earnings – predicted sales revenue of $1.167 billion and EBITDA of $126.5 million.
Business as usual EBITDA increased 15.9% to $118 million, which partially offset a 68.2% decline in catastrophe EBITDA to $8.8 million.
“Our ability to deliver growth in [business as usual] earnings, which now account for over 90% of total EBITDA, speaks to the power of our strategy,” chairman Peter Nash and MD Scott Didier say in a letter to shareholders.
“It also reflects prudent cost management, with structural efficiencies introduced across the year including a global headcount reduction of approximately 120 roles and tighter control of discretionary expenditure.”
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They say the group EBITDA is a “resilient outcome in the context of benign weather conditions and a slower than expected ramp-up in some US operations”.
The insurance building and restoration services division posted a 3.6% rise in revenue to $1.107 billion. The unit accounts for 93.8% of group revenue and comprises disaster management, strata management, compliance and home services, plus Johns Lyng USA.
“Insurance building and restoration services remains our largest and most mature business segment and once again delivered the highest earnings contribution,” Mr Nash and Mr Didier say.
The division’s performance was underpinned by growth in business as usual claim volumes, supported by new national contracts with Zurich, AIG, Aidacare and TIO, plus extensions with Suncorp, Hollard, Allianz, Auto & General and Market Lane Group.
Johns Lyng’s commercial building services division recorded revenue of $65.5 million and EBITDA of $6.1 million. The commercial construction unit is now in the final stage of run-off.
The group has reiterated its support for a buyout bid from Pacific Equity Partners. Shareholders will vote in meetings expected to be held in October.
“Should the proposed scheme proceed, it will crystallise the significant value for shareholders created by the group over many years and mark the next chapter in our journey,” Mr Nash and Mr Didier say.