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Southern Cross Electrical Engineering Limited (AU:SXE)
ASX:SXE
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Southern Cross Electrical Engineering Limited (SXE) AI Stock Analysis

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AU:SXE

Southern Cross Electrical Engineering Limited

(Sydney:SXE)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
AU$2.50
▲(10.62% Upside)
Southern Cross Electrical Engineering Limited has a strong financial foundation with robust revenue growth and solid profitability. The technical analysis indicates strong bullish momentum, though caution is advised due to overbought signals. The valuation appears stretched, which could limit upside potential. Overall, the stock is well-positioned but requires careful monitoring of valuation and cash flow trends.
Positive Factors
Revenue Growth
The company's robust revenue growth indicates strong demand for its services and effective market penetration, supporting long-term business expansion.
Balance Sheet Health
A low debt-to-equity ratio reflects a solid financial position, providing flexibility for future investments and reducing financial risk.
Market Position
The company's established reputation and expertise in complex projects enhance its competitive position, facilitating the acquisition of new contracts.
Negative Factors
Free Cash Flow Decline
A decline in free cash flow suggests potential issues in cash generation, which could impact the company's ability to invest in growth opportunities.
Gross Profit Margin Decrease
A decrease in gross profit margin may indicate rising costs or pricing pressures, which could affect long-term profitability if not addressed.
Cash Management
Effective cash management is crucial to maintain liquidity and support operations, especially with declining free cash flow growth.

Southern Cross Electrical Engineering Limited (SXE) vs. iShares MSCI Australia ETF (EWA)

Southern Cross Electrical Engineering Limited Business Overview & Revenue Model

Company DescriptionSouthern Cross Electrical Engineering Limited (SXE) is a leading Australian company specializing in the provision of electrical, instrumentation, communication, and maintenance services. Operating primarily in the resources, infrastructure, and energy sectors, SXE offers a range of core services including project management, installation, and maintenance for large-scale industrial projects. The company is recognized for its expertise in delivering complex electrical solutions, contributing to various projects across Australia and internationally.
How the Company Makes MoneySXE generates revenue through multiple streams, primarily by providing electrical and instrumentation services on a contractual basis to major clients in the mining, oil and gas, and infrastructure sectors. The company profits from long-term contracts and project-based work, which include installation, maintenance, and upgrade services for electrical systems. Additionally, SXE engages in joint ventures and partnerships with other firms to expand its service offerings and market reach, enhancing its revenue potential. The company also benefits from an established reputation and strong relationships with key industry players, which contributes to its ability to secure new contracts and maintain a steady flow of income.

Southern Cross Electrical Engineering Limited Financial Statement Overview

Summary
Southern Cross Electrical Engineering Limited demonstrates strong financial health with robust revenue growth and profitability. The balance sheet is solid with low leverage and strong equity returns. However, the decline in free cash flow growth suggests a need for careful cash management.
Income Statement
78
Positive
Southern Cross Electrical Engineering Limited has shown a strong revenue growth rate of 15.53% in the latest period, indicating robust top-line expansion. The gross profit margin has slightly decreased from the previous year, but remains healthy at 13.22%. The net profit margin is stable at 3.95%, reflecting consistent profitability. EBIT and EBITDA margins are solid, supporting operational efficiency.
Balance Sheet
82
Very Positive
The company maintains a low debt-to-equity ratio of 0.04, suggesting prudent financial leverage. Return on equity is strong at 15.48%, indicating effective use of equity capital. The equity ratio is healthy, reflecting a stable financial position with a good proportion of equity financing.
Cash Flow
70
Positive
Operating cash flow is strong, but free cash flow has seen a decline of 18.98%, which could indicate potential challenges in cash generation. The operating cash flow to net income ratio is healthy, suggesting good cash conversion from earnings. Free cash flow to net income ratio is high, indicating efficient cash flow management relative to net income.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue801.45M801.45M551.87M464.71M553.28M370.21M
Gross Profit85.39M105.92M82.67M44.62M41.94M24.86M
EBITDA54.03M57.37M40.89M39.24M32.78M29.89M
Net Income31.67M31.67M21.91M20.09M15.27M13.76M
Balance Sheet
Total Assets421.04M421.04M364.76M318.43M345.51M337.24M
Cash, Cash Equivalents and Short-Term Investments88.57M88.57M84.08M77.65M53.08M51.01M
Total Debt8.21M8.21M8.10M10.42M10.96M8.27M
Total Liabilities216.44M216.44M173.59M136.34M171.22M166.06M
Stockholders Equity204.61M204.61M191.16M182.10M174.29M171.17M
Cash Flow
Free Cash Flow59.81M59.81M33.94M44.89M26.19M27.41M
Operating Cash Flow64.79M64.79M37.56M48.17M29.67M29.28M
Investing Cash Flow-37.81M-37.81M-15.64M-8.03M-12.03M-23.63M
Financing Cash Flow-22.49M-22.49M-15.50M-15.57M-15.56M-9.92M

Southern Cross Electrical Engineering Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2.26
Price Trends
50DMA
2.13
Positive
100DMA
1.96
Positive
200DMA
1.80
Positive
Market Momentum
MACD
0.06
Positive
RSI
49.78
Neutral
STOCH
18.63
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SXE, the sentiment is Neutral. The current price of 2.26 is below the 20-day moving average (MA) of 2.32, above the 50-day MA of 2.13, and above the 200-day MA of 1.80, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 18.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SXE.

Southern Cross Electrical Engineering Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
€625.04M19.6016.18%3.32%45.23%43.94%
76
Outperform
AU$520.86M22.2034.21%2.19%3.10%5.08%
75
Outperform
AU$483.29M11.5329.67%2.85%-3.08%-16.35%
73
Outperform
AU$1.26B35.1625.18%0.55%36.30%82.20%
72
Outperform
AU$733.86M17.208.35%4.41%-21.57%-34.09%
68
Neutral
AU$661.08M19.2150.61%5.73%12.96%8.19%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SXE
Southern Cross Electrical Engineering Limited
2.26
0.75
49.87%
AU:LYL
Lycopodium Limited
12.26
1.10
9.89%
AU:GNP
GenusPlus Group Ltd.
6.56
4.02
158.27%
AU:DUR
Duratec Limited
1.94
0.38
24.36%
AU:GNG
GR Engineering Services Ltd
3.84
1.84
92.00%
AU:CVL
Civmec Singapore Limited Shs Chess Deposit Interests Repr 1 Sh
1.36
0.10
7.94%

Southern Cross Electrical Engineering Limited Corporate Events

Southern Cross Electrical Engineering Announces Director’s Interest Change
Oct 15, 2025

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Graeme Dunn acquiring 372,159 FY26 Performance Rights. This change, approved by shareholders at the recent AGM, reflects the company’s ongoing commitment to aligning executive incentives with shareholder interests, potentially impacting the company’s operational focus and stakeholder confidence.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Issues Performance Rights
Oct 15, 2025

Southern Cross Electrical Engineering Limited announced the issuance of 907,327 performance rights under an employee incentive scheme. These securities are unquoted and subject to transfer restrictions, reflecting the company’s commitment to incentivizing its workforce and aligning employee interests with corporate goals.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Announces AGM Results
Oct 14, 2025

Southern Cross Electrical Engineering Limited announced the results of its Annual General Meeting held on October 14, 2025. All resolutions were carried, including the adoption of the remuneration report and the election of directors, indicating strong shareholder support. This outcome reflects positively on the company’s governance and strategic direction, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Limited: Strategic Growth and Diversification
Oct 13, 2025

Southern Cross Electrical Engineering Limited has demonstrated significant growth, increasing its revenues from $200 million in FY17 to $800 million in FY25, largely through strategic acquisitions such as Datatel, Heyday, and the Trivantage Group. The company’s diversification into infrastructure and renewables, alongside its focus on electrification and decarbonisation, positions it strongly within the industry, promising sustained shareholder returns and financial strength.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Reports Record FY25 Results and Strategic Growth Plans
Oct 13, 2025

Southern Cross Electrical Engineering Limited announced record financial results for the fiscal year 2025, with significant increases in revenue, profitability, and cash balance. The company completed a strategic acquisition of Force Fire to enhance its service offerings and is actively seeking further acquisitions to diversify geographically and expand capabilities. The company anticipates continued growth in EBITDA for FY26, driven by high demand for data centers and renewable energy investments, positioning itself strongly in these sectors.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Director’s Share Acquisition Reflects Confidence in Southern Cross Electrical Engineering
Oct 9, 2025

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Karl John Paganin acquiring additional shares through the company’s Dividend Reinvestment Plan. This acquisition increases his total holdings, reflecting confidence in the company’s financial strategies and potentially impacting investor perceptions positively.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Director Increases Stake in Southern Cross Electrical Engineering
Oct 9, 2025

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Simon John Buchhorn acquiring additional ordinary shares through the company’s Dividend Reinvestment Plan. This change reflects the director’s increased investment in the company, potentially signaling confidence in the company’s financial health and future prospects.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering to Quote New Securities on ASX
Oct 8, 2025

Southern Cross Electrical Engineering Limited has announced the application for the quotation of 363,600 fully paid ordinary securities on the ASX. This move could potentially enhance the company’s liquidity and market presence, offering stakeholders increased opportunities for investment and engagement.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Updates Dividend Distribution Details
Oct 2, 2025

Southern Cross Electrical Engineering Limited announced an update regarding its dividend distribution, confirming the Dividend Reinvestment Plan (DRP) price and the foreign exchange rate for dividends paid in New Zealand Dollars to shareholders with a registered address in New Zealand. This update is significant as it provides clarity on the financial aspects of the dividend distribution, potentially impacting the company’s stakeholders by ensuring accurate and transparent financial communication.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Group Announces 2025 Annual General Meeting
Sep 11, 2025

Southern Cross Electrical Engineering Limited has announced its 2025 Annual General Meeting, scheduled for October 14, 2025, in Perth, WA. The meeting will provide shareholders with the opportunity to discuss company operations and future strategies, potentially impacting stakeholder decisions and company direction.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE’s Strategic Growth and Diversification Drive Revenue Surge
Sep 7, 2025

Southern Cross Electrical Engineering Limited (SCEE) has demonstrated significant growth and diversification, both geographically and across market sectors, with a strong focus on infrastructure and renewables. The company’s strategic acquisitions have played a crucial role in its revenue increase and expansion into new sectors, enhancing its industry positioning and offering promising returns for stakeholders.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.00 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Appoints New Director
Sep 1, 2025

Southern Cross Electrical Engineering Limited has announced the appointment of Louise Daw as a director, effective from September 1, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, potentially impacting its strategic direction and enhancing its market position.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Director Increases Stake in Southern Cross Electrical Engineering
Aug 27, 2025

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Director Michael McNulty acquiring 15,000 ordinary shares at $2.00 per share through an on-market purchase. This acquisition increases McNulty’s total holdings to 36,282 ordinary shares, potentially signaling confidence in the company’s future performance and stability, which could positively impact stakeholder perceptions.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Director’s Interest Change at Southern Cross Electrical Engineering
Aug 26, 2025

Southern Cross Electrical Engineering Limited announced a change in the director’s interest, with Graeme Dunn exercising 502,174 FY23 Performance Rights to acquire an equivalent number of Ordinary Shares. This transaction reflects a strategic adjustment in the director’s holdings, potentially indicating confidence in the company’s future performance and aligning with shareholder interests.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Announces Quotation of New Securities
Aug 26, 2025

Southern Cross Electrical Engineering Limited announced the quotation of 1,201,087 ordinary fully paid securities on the ASX, effective August 26, 2025. This move, part of an employee incentive scheme, is expected to enhance the company’s market presence and provide liquidity, benefiting stakeholders by potentially increasing the company’s operational flexibility and attractiveness to investors.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Reports Significant Revenue Growth and Strategic Expansion in FY25
Aug 19, 2025

Southern Cross Electrical Engineering Limited (SCEE) has reported its full-year results for FY25, showcasing a substantial growth in revenue from $200 million in FY17 to $800 million in FY25. The company, which has diversified its operations across various sectors and geographies, continues to strengthen its market position through strategic acquisitions and a focus on infrastructure, data centers, electrification, and decarbonization, ensuring long-term growth and shareholder returns.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Group Reports Record Financial Results and Strategic Expansion
Aug 19, 2025

Southern Cross Electrical Engineering Limited announced record financial results for the year ended 30 June 2025, with revenue reaching $801.5 million, up 45.2% from the previous year. The company achieved record EBITDA, EBIT, and NPAT, alongside a strong cash position and increased dividends. The acquisition of Force Fire expanded SCEE’s capabilities, contributing to a diversified order book worth $685 million. The company is exploring further acquisitions and has provided optimistic guidance for FY26, indicating continued growth and robust market positioning.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Southern Cross Electrical Engineering Releases Corporate Governance Statement
Aug 19, 2025

Southern Cross Electrical Engineering Limited has released its Corporate Governance Statement, confirming adherence to the ASX Corporate Governance Council’s principles and recommendations for the financial year ending June 30, 2025. The statement, available on the company’s website, outlines the company’s governance practices, including board responsibilities and management oversight, which are crucial for maintaining transparency and accountability to stakeholders.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.40 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Group Appoints Louise Daw as Independent Non-Executive Director
Aug 13, 2025

Southern Cross Electrical Engineering Limited has appointed Louise Daw as an independent Non-Executive Director, effective from 1 September 2025. Ms. Daw brings extensive experience in technology, governance, and strategic transformation, having held leadership roles in software development and sustainability. Her appointment is expected to enhance the board’s capabilities in addressing challenges related to cybersecurity, AI, and sustainable business practices, potentially strengthening the company’s industry positioning.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.25 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

SCEE Group Secures Over $110 Million in New Contracts
Aug 11, 2025

Southern Cross Electrical Engineering Limited has secured over $110 million in awards through its subsidiaries, SCEE Electrical and Trivantage Manufacturing. These include a four-year extension with Energy Queensland Limited for asset inspection and maintenance, a new five-year Master Services Agreement with Newmont Mining Services for electrical support at the Boddington gold mine, and contracts for supplying switchboards for the Sydney Metro and a development in Sydney’s Darling Harbour. These awards highlight SCEE Group’s strategy to enhance recurring revenue streams and strengthen its position in major infrastructure projects.

The most recent analyst rating on (AU:SXE) stock is a Buy with a A$2.25 price target. To see the full list of analyst forecasts on Southern Cross Electrical Engineering Limited stock, see the AU:SXE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025