Data#3 Limited reported record financial results for the year ended 30 June 2026, with net profit after tax reaching $54.522 million, representing 13.1% growth on the prior corresponding period. The company navigated subdued economic conditions to deliver strong performance across all key metrics, signaling resilience in the Australian IT market and effective operational execution.
Revenue from ordinary activities climbed 6.3% to $907.298 million, while gross sales increased a more substantial 12.7% to $3.385 billion. This divergence reflects the company’s accounting treatment for sales recognised as agent, where a portion of gross proceeds is excluded from reported revenue under Australian Accounting Standards. The stronger gross sales growth indicates underlying demand strength, with Data#3 capturing a growing portion of IT services activity across its customer base. The 6.3% revenue growth, while more modest than gross sales expansion, still demonstrates the company’s ability to grow its principal business amid competitive market conditions.
The dividend outcome reflects management confidence in the earnings trajectory. Data#3 declared a total dividend of 31.75 cents per share for FY26, comprising an interim payment of 13.50 cents and final dividend of 18.25 cents, both fully franked. This represents a meaningful increase from the prior year’s total of 28.25 cents per share. The 12.5% growth in the fully franked dividend demonstrates the company’s capacity to return earnings to shareholders while maintaining financial flexibility. The decision to grow dividends in line with profit growth suggests management’s comfort with current operating conditions and the sustainability of earnings levels.
Balance sheet strength provides additional confidence in the sustainability of returns. Net tangible asset backing expanded to $0.54 per share from $0.46 in the prior year, a 17.4% increase reflecting the profit generation during the period. Retained profits grew to $80.024 million, a 14.8% increase year on year, after accounting for dividend payments of $44.198 million. The company’s ability to grow earnings faster than dividends were paid underscores strong cash generation capacity and suggests room for future capital deployment.
Investors should monitor the sustainability of gross sales growth momentum, the company’s capacity to convert sales into profit as pricing and cost dynamics evolve, and any strategic decisions around capital allocation. The market will also assess whether the Australian IT sector can maintain current growth rates or faces headwinds from broader economic conditions. Quarterly revenue trends and margin progression will be key metrics to track in coming reporting periods. This announcement is price sensitive and has been flagged as material by the ASX.
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About DTL (ASX: DTL)
DTL is listed on the Australian Securities Exchange (ASX: DTL).
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