SKS Technologies secures $20 million data centre contract with Built Australia

SKS Technologies Group Limited (ASX:SKS) has secured a $20 million data centre contract with major construction company, Built Australia, for a project in Melbourne's western suburbs. This contract is an extension of works related to the $90 million international hyperscale data centre project announced in July 2024. The contract award has increased the company's revenue forecast for FY2025 to over $220 million.

Executive Commentary on Contract and Company Performance

In a relatively short time, SKS Technologies has won and delivered a number of large data centre project works, generating a reputation as a preferred supplier of electrical and communications solutions to major companies developing data centre infrastructure in Australia. The $20 million contract includes the design, co-ordination, supply & installation of submains, cable support systems, general power and communications cabling, whip cabling installation, equipment testing, and integrated electrical fit out of the client's office and administrative areas. The company has been successful in securing approximately a total of $170 million of combined work in the sector since the initiative in FY22, while achieving a growing portfolio of work on hand in its traditional sectors. The latest work on hand total is $168 million. The Board and management remain focused on the excellent execution of every project, consolidating the operating framework to support the new levels of contract wins and delivery. The Board remains comfortable that the current working capital position can continue to support the current activity of the business.

Summary of SKS Technologies' Data Centre Contract and Future Outlook

SKS Technologies Group Limited (ASX:SKS) has secured a $20 million data centre contract with Built Australia, further solidifying its position as a preferred supplier of electrical and communications solutions in the data centre market. The contract extension aligns with the company's mission to create sustainable and profitable business growth by focusing on delivery capabilities and integration synergies across its regions and divisions. With the latest work on hand totaling $168 million and a revenue forecast for FY2025 exceeding $220 million, SKS Technologies is well-positioned to capitalize on the growing demand for data centre infrastructure in Australia, which is expected to reach a value of $7.7 billion by 2029. The company's exceptional operational performance and record financial results in FY24 demonstrate its ability to excel in the market, and the Board's confidence in the current working capital position reflects a positive outlook for the business's future endeavors.