Seven Group Holdings (SGH) experienced a significant downturn in morning trading on the S&P/ASX 200 on Tuesday. As of 11:28 am AEST, shares had plummeted 9.5 per cent to $46.91, making it the index’s biggest laggard. Seven Group Holdings is a diversified industrial services company with operations spanning construction, mining, and energy. The company’s portfolio includes businesses such as WesTrac, Coates, and Boral.
According to UBS analyst Nathan Reilly, SGH’s fiscal year 2025 result was generally in line with expectations. Revenue saw a 1 per cent increase, reaching $10.7 billion, while earnings before interest and taxes (EBIT) grew by 8 per cent to $1.5 billion. However, the company’s guidance for the current financial year has tempered expectations.
Reilly noted that SGH’s guidance for the current financial year was 5 per cent below UBS forecasts and 9 per cent below consensus estimates. He attributed the moderated growth outlook to headwinds from Beach Energy and Coates, partially offset by mid-single-digit EBIT growth at WesTrac and Boral.
Despite the current share price decline and revised growth outlook, UBS maintains a “buy” recommendation for Seven Group Holdings, with a target price of $60.00. Investors will be watching closely to see if SGH can overcome the challenges and meet UBS’s optimistic target.
