Acrow Formwork and Construction Services Limited (ACF) AI Stock Analysis

• Market Cap: AU$266.38M
• Dividend Yield: 5.71%
• Average Volume (3M): 443.86K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.87
• Revenue Growth: 25.14%
• EPS Growth: -14.54%
• Country: AU
• Employees: 300
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 311,561,220
• 10 Day Avg. Volume: 268,850
• 30 Day Avg. Volume: 443,862
• PEG Ratio: -0.87
• Price to Book (P/B): 2.08
• Price to Sales (P/S): 1.29
• P/FCF Ratio: -17.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$1.26
• Price Target Upside: 38.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.09
• Revenue Forecast (FY): AU$320.98M

• Rating: 69 Neutral
• Price Target: AU$0.94 ▲(2.75% Upside)
• Action: Downgraded Date: 10/02/25
• Date: Action: Downgraded 10/02/25

Acrow Formwork and Construction Services Limited demonstrates strong financial performance with solid revenue growth and operational efficiency. However, cash flow management and leverage pose risks. Technical indicators show bullish momentum but suggest caution due to overbought conditions. The stock's valuation is attractive, supported by a fair P/E ratio and high dividend yield.

Positive Factors

Revenue Growth

Sustained high revenue growth (25.7% reported) signals expanding demand and successful market penetration in engineering and construction. Over a 2-6 month horizon, a growing revenue base supports scale economics, strengthens backlog visibility, and enables reinvestment into operations and capabilities.

High Gross Margin

A gross margin of 78.53% indicates strong cost control and pricing power in core services. High gross margins provide a durable buffer against input cost swings, underpin healthy EBITDA (22.61%) and EBIT (15.36%), and support reinvestment in equipment and specialist teams over multiple quarters.

Return on Equity

Return on equity of 15.61% reflects effective deployment of shareholder capital and operational profitability. Sustained ROE at this level supports internal funding capacity for growth and signals that management extracts solid returns from invested capital, beneficial for medium-term shareholder value creation.

Negative Factors

Weak Cash Conversion

Negative free cash flow growth and an operating-cash-to-net-income ratio of 0.32 show poor cash conversion. This reduces the company's ability to self-fund capex, pay down debt, or absorb project timing shocks, increasing reliance on external financing and elevating execution risk in the next several quarters.

Moderate Leverage

A debt-to-equity ratio of 1.15 and a modest equity ratio constrain financial flexibility. In a cyclical, project-driven industry, this leverage level raises interest and refinancing risk, limits ability to bid large projects without additional capital, and amplifies downside in cash-stress scenarios.

Declining Margins & EPS

A reduced net profit margin (9.63%) alongside negative EPS growth indicates margin pressure and earnings volatility. For a capital-intensive construction business, this erodes retained earnings, weakens the ability to rebuild cash buffers, and may constrain investment or dividend policy over the medium term.

Acrow Formwork and Construction Services Limited Business Overview & Revenue Model

Company Description

Acrow Formwork and Construction Services Limited provides engineered formwork, scaffolding and screen systems solutions, and in-house engineering and industrial labour supply services in Australia. The company is also involved in the rental of formwork equipment, including wall forming panel systems; soffit forming systems, such as Acrowform aluminum panels; GASS table forms; supercuplok; conventional systems; and scaffolding systems comprising cuplok scaffolding, super cuplok scaffolding, and ring-lok and quickstage scaffolding products. It offers hire and sales solutions to residential, commercial, civil, and industrial customers. Acrow Formwork and Construction Services Limited was founded in 1936 and is based in Sydney, Australia.

How the Company Makes Money

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Acrow Formwork and Construction Services Limited Financial Statement Overview

Summary

Acrow Formwork and Construction Services Limited shows strong revenue growth and operational efficiency with healthy profit margins. However, challenges with cash flow management and increased leverage could impact future financial stability. Improving cash flow and managing debt levels are crucial for sustained growth.

Income Statement

Acrow Formwork and Construction Services Limited has demonstrated strong revenue growth, with a notable 11.42% increase in the latest year. The company maintains a healthy gross profit margin of 78.53%, indicating efficient cost management. However, the net profit margin has decreased to 9.63%, suggesting increased expenses or other financial pressures. The EBIT margin of 15.36% and EBITDA margin of 22.61% reflect solid operational performance, though slightly lower than previous years.

Balance Sheet

The balance sheet shows a debt-to-equity ratio of 1.15, indicating a moderate level of leverage, which could pose risks if not managed properly. Return on equity stands at 15.61%, showcasing effective use of shareholder funds, though it has decreased from previous years. The equity ratio is 36.71%, reflecting a balanced capital structure but with room for improvement in equity financing.

Cash Flow

Cash flow analysis reveals challenges, with a negative free cash flow growth rate of -22.90%, indicating potential liquidity issues. The operating cash flow to net income ratio is 0.32, suggesting moderate cash generation relative to net income. The free cash flow to net income ratio is negative, highlighting the need for better cash flow management to support operations and growth.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	210.32M	241.66M	193.12M	149.81M	140.83M	94.61M
Gross Profit	77.22M	189.77M	163.24M	35.33M	26.20M	11.54M
EBITDA	44.63M	54.64M	65.27M	48.51M	34.21M	20.84M
Net Income	13.53M	23.27M	25.56M	23.46M	15.69M	3.96M
Balance Sheet
Total Assets	428.29M	406.14M	312.45M	218.52M	184.90M	159.03M
Cash, Cash Equivalents and Short-Term Investments	6.48M	8.02M	5.59M	4.94M	3.01M	1.75M
Total Debt	227.43M	171.78M	106.69M	75.20M	64.10M	56.25M
Total Liabilities	280.19M	257.05M	171.49M	115.63M	101.58M	97.54M
Stockholders Equity	148.10M	149.09M	140.96M	102.88M	83.32M	61.49M
Cash Flow
Free Cash Flow	-22.62M	-17.86M	-7.67M	-19.25M	-14.15M	-8.22M
Operating Cash Flow	20.16M	31.91M	32.54M	25.69M	8.23M	9.19M
Investing Cash Flow	-55.41M	-52.97M	-49.00M	-26.26M	-18.44M	-9.84M
Financing Cash Flow	38.49M	4.91M	13.51M	1.32M	7.20M	-9.83M

Acrow Formwork and Construction Services Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ACF, the sentiment is Negative. The current price of 0.91 is below the 20-day moving average (MA) of 0.93, below the 50-day MA of 1.00, and below the 200-day MA of 1.02, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 31.46 is Neutral, neither overbought nor oversold. The STOCH value of 19.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:ACF.

Acrow Formwork and Construction Services Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUR	74 Outperform	AU$600.79M	9.20	29.27%	2.25%	3.10%	5.08%
CVL	69 Neutral	AU$769.53M	―	8.35%	4.17%	-21.57%	-34.09%
ACF	69 Neutral	AU$266.38M	12.10	9.11%	5.71%	25.14%	-14.54%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GNG	63 Neutral	AU$705.53M	10.83	42.55%	5.24%	12.96%	8.19%
SND	56 Neutral	AU$117.55M	-6.43	-12.62%	2.78%	-0.72%	-78.03%

Acrow Formwork and Construction Services Limited Corporate Events

Acrow Director Peter Lancken Lifts Stake with On‑Market Share Purchase

Acrow Limited has disclosed a change in the interests of director Peter Lancken, who holds his stake indirectly through Netwealth Investments Limited and Bond Street Custodians Limited as custodians for the Lancken Investment Trust and Lancken Retirement Fund. On 17 March 2026, Lancken acquired 100,000 fully paid ordinary shares in an on‑market trade at $0.8719 per share, increasing his holding from 12,713,083 to 12,813,083 shares.

The transaction signals a modest increase in insider ownership, which may be interpreted by investors as a sign of confidence in Acrow’s prospects and ongoing operations. The company confirmed there was no related change in any director interests in contracts, and the trade did not occur during a closed period requiring prior written clearance, indicating standard-course secondary market activity under ASX disclosure rules.

The most recent analyst rating on (AU:ACF) stock is a Buy with a A$0.98 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow releases unaudited first-half 2026 results presentation with usage cautions

Acrow Formwork and Construction Services released a presentation of its unaudited first-half 2026 financial results, outlining performance highlights and operational updates for investors. The company cautioned that the document is informational only, with no warranties on completeness or accuracy, and does not constitute an offer to sell or solicitation to buy securities.

Management emphasised that some statements may be forward-looking and subject to material risks and uncertainties, underscoring that past performance is not necessarily indicative of future results. The board-approved presentation also restricts redistribution and use, reinforcing that recipients should not place undue reliance on the material when evaluating potential investments in Acrow.

The most recent analyst rating on (AU:ACF) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow Delivers Record Revenue but Margin Pressure Hits First-Half Profit

Acrow reported record first-half FY26 revenue of $155.9 million, up 23% year on year, driven predominantly by a 54% surge in its Industrial Access division, which now contributes 62% of group revenue. Despite the top-line growth, underlying EBITDA fell 3%, EBIT dropped 15% and NPAT declined 22%, as margins compressed due to a shift in earnings mix, higher depreciation and interest, and weaker trading in Queensland construction.

The Construction Services division saw a 7% revenue decline amid a lull between major Queensland projects, partially offset by stronger activity in New South Wales, South Australia and Western Australia. Acrow increased net debt to $151.5 million to fund growth capital in Jumpform, Screens and Industrial Access, while maintaining solid momentum in these specialist businesses and guiding to FY26 revenue growth of 22% and EBITDA growth of 2%, underscoring a strategic pivot toward scale and recurring industrial work despite near-term margin pressure.

The most recent analyst rating on (AU:ACF) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow Declares Interim Dividend of 2 Cents Per Share

Acrow Limited has declared an ordinary fully paid share dividend of AUD 0.02 per share for the six-month period ended 31 December 2025, reinforcing its pattern of capital returns to investors. The dividend will trade ex on 29 April 2026, with a record date of 30 April 2026 and payment scheduled for 29 May 2026, and shareholders can elect participation in the dividend reinvestment plan by 8 May 2026, underscoring the company’s focus on both income and reinvestment options for stakeholders.

The most recent analyst rating on (AU:ACF) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow lifts revenue but profit and earnings per share decline

Acrow Limited reported a 23% rise in revenue to $156 million for the half year to 31 December 2025, driven by ordinary activities and asset disposals, but net profit after tax fell 30% to $6.6 million as earnings per share and net tangible assets per share declined. Despite lower underlying profit and a 22% drop in net profit excluding significant costs, the board declared a fully franked interim dividend of 2 cents per share and maintained its dividend reinvestment plan, signalling continued capital returns to shareholders while balancing investment needs and a softening in profitability metrics.

The most recent analyst rating on (AU:ACF) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.

Acrow Seeks ASX Quotation for 178,548 Newly Issued Shares

Acrow Limited has applied for the quotation of additional fully paid ordinary shares on the ASX, following the conversion of options or other convertible securities. The company is seeking quotation for a total of 178,548 new shares issued on various dates in November 2025, a move that modestly increases its quoted capital base and reflects ongoing exercise of equity-linked instruments by holders.

The most recent analyst rating on (AU:ACF) stock is a Buy with a A$1.31 price target. To see the full list of analyst forecasts on Acrow Formwork and Construction Services Limited stock, see the AU:ACF Stock Forecast page.