Seven Group Holdings Shares Slide on Softer FY26 Guidance

Highlights:

• Seven Group Holdings Limited (ASX: SGH) shares dropped 9.5% to $46.91 at the time of writing, making it the biggest laggard on the S&P/ASX 200.
• FY25 results met expectations with revenue up 1% to $10.7 billion and EBIT rising 8% to $1.5 billion.
• FY26 guidance came in below market forecasts, with weakness in Beach Energy and Coates partly offset by growth in WesTrac and Boral.

Morning Sell-Off Leads ASX Declines

Seven Group Holdings Limited (ASX: SGH), controlled by Kerry Stokes, emerged as the biggest laggard on the S&P/ASX 200 in early Tuesday trading, with shares falling 9.5% to $46.91 at the time of writing. The sell-off came despite the company reporting fiscal year 2025 results that were broadly in line with market expectations.

FY25 Results Match Estimates

For the year ended June 30, 2025, Seven Group posted a 1% increase in revenue to $10.7 billion and an 8% rise in earnings before interest and tax (EBIT) to $1.5 billion. UBS analyst Nathan Reilly noted that the results were consistent with forecasts but highlighted that the company’s fiscal 2026 guidance fell short of expectations—5% below UBS projections and 9% under consensus estimates.

Outlook Reflects Mixed Business Performance

The softer guidance is attributed to anticipated weakness in Beach Energy and Coates Hire operations, partly offset by mid-single-digit EBIT growth expected from WesTrac and Boral. This combination points to a more tempered growth trajectory in the near term, prompting some investor caution.

Analyst View Remains Positive

Despite the guidance miss, UBS has maintained its “buy” rating on Seven Group Holdings, with a target price of $60.00. The broker believes the company’s diversified portfolio and operational strengths in key subsidiaries will continue to deliver long-term value, even as certain segments face headwinds.

Market Focus on FY26 Delivery

Investors will be closely watching how Seven Group navigates challenges in its energy and equipment rental businesses while leveraging growth opportunities in construction materials and equipment services. The coming months will be crucial in determining whether the company can meet revised expectations and restore market confidence.

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