Korvest (ASX:KOV) logged growth for the six months ended Dec. 31, 2025, with revenue from trading operations rising 17.9% to $60.3 million, driven by higher activity in its industrial products segment.
Profit before tax increased 33.2% to $5.4 million, boosted by a $163,000 accounting gain from a lease termination.
This was partially offset by $566,000 in engineering claim costs related to a third-party design fault, bringing total claim-related costs for the period to $1.4 million.
Revenue from the EzyStrut range grew 19.3%, supported by all sales channels and particularly strong major project activity, with three projects supplied compared to just one in the prior period.
Branch network costs rose due to higher headcount, annual salary adjustments, and relocation costs for the Queensland branch, which moved to a larger site in December.
Galvanising volumes improved over the prior period, though below FY25 second-half levels, with zinc prices rising but forward purchases earlier in the year mitigating the impact.
Labour costs increased as capacity was built for a major project delayed to the second half.
Capital expenditure reached record levels, including $1.5 million for the Kilburn site redevelopment, five new trucks for the EzyStrut fleet, and a major galvanising shutdown to replace equipment and install a new burner system.
The board declared a fully franked interim dividend of 25 cents per share, payable on March 6.
Korvest expects second-half growth from additional major infrastructure projects, continued strong smaller project activity, and higher galvanising volumes.