Company Overview

Acrow Limited is an Australian engineering company providing temporary works equipment and services for construction and infrastructure projects. The business primarily operates a rental model built around formwork, scaffolding and related systems, making its performance closely linked to construction activity and infrastructure spending in Australia. Click here to see all our latest articles about Acrow Limited (ASX: ACF).

Core Products & Competitive Position

Acrow supplies formwork, scaffolding, propping and other engineered temporary works systems used in building and civil projects. Its competitive edge comes from a large hire fleet, national coverage and engineering support, allowing the company to deliver integrated solutions rather than just equipment rental.

Company Life Cycle

Acrow operates in a mature industry but has expanded through fleet growth, broader product offerings and increasing exposure to infrastructure projects.

Business Model

Equipment Hire & Engineering Services

The company owns a large hire fleet of roughly 65,000 tonnes of equipment, which is deployed across projects and generates recurring rental income. In addition to equipment hire, engineering design, installation and related services can account for around 40% of total revenue, making services an important complementary revenue stream alongside equipment rental.

The company operates across two main segments: construction services for building projects and industrial & infrastructure services, supplying temporary works equipment and engineering support to contractors across these sectors.

Growth Drivers & Business Segments

Acrow’s revenue growth has been driven by both organic expansion of its equipment fleet and project activity, as well as acquisitions, notably Natform (high-rise formwork systems) and Uni-Span (industrial formwork solutions).

Financials

Strong Revenue Growth with Moderating Profit

Acrow’s revenue increased from A$140.8M in FY2022 to about A$241.7M in FY2025, implying an average annual growth rate of roughly 19–20%, driven by fleet expansion and stronger infrastructure activity.

Net profit rose from A$15.7M to around A$23–25M over the same period, though growth has been less consistent, reflecting higher operating costs and continued investment in the business.

Important Recent Announcements

Trading Update & FY26 Guidance (Feb 2026)

Management confirmed that the company remains on track to deliver around 22% revenue growth for the first half of FY26, supported by strong activity in the Industrial Access division.

Large Infrastructure Contracts

Acrow previously secured a A$55.6M multi-year contract on the Snowy 2.0 project, the largest contract in the company’s history, highlighting growing exposure to major infrastructure projects.

Acquisition Strategy

The company has continued to expand capabilities through acquisitions, including scaffolding and access-related businesses, strengthening its position in industrial and infrastructure markets.

Last Report overview

Acrow delivered strong top-line growth in 1H FY26, with revenue up 23% to A$155.9m, but earnings quality softened as EBITDA fell 3% and underlying NPAT declined 22% to A$12.9m.

The key strategic positive is Industrial Access, which now makes up 62% of group revenue and is tracking toward roughly A$200m of FY26 revenue, giving the business a more recurring earnings base.

Operationally, Acrow still has clear growth levers, including a record A$234.7m hire pipeline, a A$300m labour hire forward order book, 90 active screen projects and a A$78m Jumpform pipeline.

Fundamental view

Dividend & Fundamentals

Fundamental View: The company screens as fundamentally attractive, with a modest P/E of 13.45, solid profitability (A$23.27m net profit) and strong cash generation, highlighted by a low P/FCF of 5.59 and an impressive 17.86% free cash flow yield.

Shareholder Return: The investment case is further supported by a 5.65% annualised dividend yield with 100% franking, suggesting the stock offers a compelling mix of earnings support, cash flow strength and income appeal.

Valuation – Mid-Teens Earnings Framework

Given its asset-backed hire fleet, recurring rental income and exposure to infrastructure projects, Acrow sits somewhere between a traditional contractor and an equipment rental platform. Businesses with these characteristics are typically valued on mid-teens earnings multiples, reflecting recurring revenue but also exposure to construction cycles.

Using an estimated net profit of about A$24M and applying a P/E range of 14–16x, the implied equity valuation for the company falls between A$336M and A$384M.

With 311.5 million shares outstanding, this suggests a value of roughly A$1.08–A$1.23 per share.

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Technical Picture – Breakdown from Long-Term Range

The chart shows Acrow trading within a descending channel for roughly the past two years, with the price repeatedly respecting both the upper and lower trend lines.

Price is now trading below both the 50-day and 200-day moving averages, while the RSI near 30–35 suggests the stock is approaching oversold territory. This means the immediate trend remains weak, although a short-term bounce could occur if buyers step in near the recent support area.

Acrow Limited (ASX: ACF) share price forecast — Source: TradingView

FAQs about Acrow Limited (ASX: ACF)

Is Acrow’s growth organic or acquisition-driven?

Growth has been a mix of both. The company has expanded its hire fleet and project activity organically, while acquisitions such as Natform and Uni-Span have broadened its product offering and contributed to revenue growth.

How does Acrow generate revenue?

Acrow earns revenue primarily by renting temporary works equipment such as scaffolding and formwork to construction and infrastructure projects. Engineering design, installation and project services can contribute around 40% of total revenue, making services an important complementary income stream.

Is Acrow’s business cyclical?

Yes. Demand for the company’s equipment and services is closely linked to construction activity and infrastructure spending in Australia, meaning revenue can fluctuate with the building cycle and project pipeline.