Southern Cross Electrical Engineering (ASX:SXE) Shares Face Statutory Profit Crunch

Simply Wall St.

Aug 20

Southern Cross Electrical Engineering walked into this result with the stock up roughly 17% over three months and trading at A$4.48 at Tuesday’s close. That is a price that already reflects higher ...

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That is a price that already reflects higher ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-sxe/southern-cross-electrical-engineering-shares/news/southern-cross-electrical-engineering-asxsxe-shares-face-sta\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Southern Cross Electrical Engineering (ASX:SXE) Shares Face Statutory Profit Crunch</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSouthern Cross Electrical Engineering (ASX:SXE) Shares Face Statutory Profit Crunch\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-08-20 04:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/capital-goods/asx-sxe/southern-cross-electrical-engineering-shares/news/southern-cross-electrical-engineering-asxsxe-shares-face-sta><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Southern Cross Electrical Engineering walked into this result with the stock up roughly 17% over three months and trading at A$4.48 at Tuesday’s close. That is a price that already reflects higher ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/capital-goods/asx-sxe/southern-cross-electrical-engineering-shares/news/southern-cross-electrical-engineering-asxsxe-shares-face-sta\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SXE.AU","symbol_name":"SOUTHERN CROSS ELECTRICAL","start_time":0,"source_url":"https://simplywall.st/stocks/au/capital-goods/asx-sxe/southern-cross-electrical-engineering-shares/news/southern-cross-electrical-engineering-asxsxe-shares-face-sta","article_id":"2660461476","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3041000-choice2-main-header/1585186777117"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/au/capital-goods/asx-sxe/southern-cross-electrical-engineering-shares/news/southern-cross-electrical-engineering-asxsxe-shares-face-sta","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2660461476","pubTimestamp":1787171093,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Southern Cross Electrical Engineering walked into this result with the stock up roughly 17% over three months and trading at A$4.48 at Tuesday’s close. That is a price that already reflects higher expectations, with the P/S ratio above both peers and the wider Australian construction sector.\nThe headline from the full year numbers is simple. Underlying profit surged, with underlying net profit after tax at A$39.4m and margins improving, yet statutory profit shrank to A$7.1m after a A$46.1m...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"SXE.AU":"SOUTHERN CROSS ELECTRICAL","VOTE":"TCW Transform 500 ETF","BK7055":"建筑与工程","FEBU":"AllianzIM U.S. Equity Buffer15 Uncapped Feb ETF","JOYT":"JPMorgan Equity and Options Total Return ETF","GXDW":"Global X Dorsey Wright Thematic ETF","PMDE":"PGIM S&P 500 Max Buffer ETF - December","RGLO":"Global Equity Active ETF","VGFPF":"Vanguard Funds PLC","DECU":"AllianzIM U.S. Equity Buffer15 Uncapped Dec ETF"},"translate_title":"南十字电气工程公司 (ASX:SXE) 股票面临法定利润紧缩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VOTE":0.85,"PMDE":0.85,"SXE.AU":1.5,"RGLO":0.85,"DECU":0.85,"FEBU":0.85,"GXDW":0.85,"VGFPF":0.85,"JOYT":0.85},"content_text":"Southern Cross Electrical Engineering walked into this result with the stock up roughly 17% over three months and trading at A$4.48 at Tuesday’s close. That is a price that already reflects higher expectations, with the P/S ratio above both peers and the wider Australian construction sector. The headline from the full year numbers is simple. Underlying profit surged, with underlying net profit after tax at A$39.4m and margins improving, yet statutory profit shrank to A$7.1m after a A$46.1m arbitration hit. The market has been pricing in growth, and it now has to weigh that earnings quality against a rich starting valuation. Love Southern Cross Electrical Engineering's stronger underlying profit but concerned about the hit to statutory earnings and a rich starting valuation? You may want to review our screener of 10 resilient stocks with low risk scores for companies that pair earnings resilience with more conservative risk profiles. AdvertisementFY 2026 Earnings Summary  Revenue (FY 2026 vs FY 2025 TTM): A$718.7m vs. A$801.5m (decline of 10.3%) Net Income from Continuing Operations (FY 2026 vs FY 2025 TTM): A$7.1m vs. A$31.7m (decline of 77.7%) Basic EPS (FY 2026 vs FY 2025 TTM): A$0.0265 vs. A$0.1199 (decline of 77.9%) Net Profit Margin (FY 2026 vs FY 2025 TTM): 1% vs. 4% (margin compressed by 3 percentage points)  Prefer clear charts instead of another wall of earnings tables and footnotes? Get a full visual picture of Southern Cross Electrical Engineering, with a focus on profitability trends and earnings quality, in our company report for Southern Cross Electrical Engineering. ASX:SXE Trailing 12-Month Earnings & Revenue History as at Aug 2026 Southern Cross Electrical Engineering’s growth story on trial Bulls argue Southern Cross Electrical Engineering is shifting from a cyclical contractor to a clear beneficiary of long duration data centre and infrastructure demand, with a record backlog to match. The FY26 print gives solid support. Underlying EBITDA rose to A$77.0m with underlying NPAT at A$39.4m despite revenue falling to A$718.7m, which points to better project mix and cost control rather than just volume. The order book reached A$810m and recurring revenue is now A$220m, about 31% of group revenue, which fits the narrative of more multi discipline and maintenance work. More than 40% of revenue now comes from non electrical activities and 30% of the order book is in those areas, showing the diversification plan is progressing. Management commentary of an “unprecedented” data centre pipeline, plus contracts like NEXTDC S4, aligns with the thesis but still needs sustained conversion. Bear concerns on volatility, concentration and risk The bear story focuses on project lumpiness, concentration and litigation risk that could make SXE’s earnings more fragile than the growth narrative implies. FY26 numbers give that view some support. Revenue fell 10.3% as very large projects such as Collie BESS and Western Sydney Airport rolled off. This underlines how timing on a few jobs can move the top line. Statutory NPAT dropped to A$7.1m after the A$46.1m WestConnex arbitration settlement, a clear reminder of contract and legal risk in this business model. Management also flagged an A$4.4m non cash remeasurement charge on share based payments that will move with the share price, adding another source of earnings volatility. The push into big data centre work, including expectations that this revenue will ramp sharply, increases exposure to project timing and client concentration even as the broader backlog grows. Reveal where the consensus on Southern Cross Electrical Engineering quietly diverges over the next few years and what the street is secretly modeling for the next potential inflection point by accessing the analyst estimates for Southern Cross Electrical Engineering. Take Control Of Your Next Move If Southern Cross Electrical Engineering's mix of stronger underlying profit, lower statutory earnings and a premium P/S ratio has your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch how sentiment reacts from here. Once you decide to take a position, use the Portfolio Command Center to cut through noise and keep on top of the most important updates across all your holdings. Over time, tap into the Community to see how other investors are thinking about risks, contracts and earnings quality. This way you can surface potential catalysts and red flags early and give yourself a better chance of staying ahead of the market. Seeking Alternatives Beyond Southern Cross Electrical Engineering Markets move fast and the best breakout ideas rarely stay under the radar for long. Scan fresh stock lists before momentum is fully priced in and act now.  Spot companies with sturdy cash flows and balance sheets before the crowd by running the list of solid balance sheet and fundamentals stocks (21 results). Ride long term spending trends in power and grid upgrades by checking the curated list of 39 power grid technology and infrastructure stocks. Target miners with leverage to potential metal price momentum using a focused basket of 30 elite gold producer stocks.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n        and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n        financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n        Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n        Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"}}}