Summary
The fund managers believe that Alfabs Australia Ltd presents a strong investment opportunity due to its robust growth trajectory and commitment to innovation. In their opinion, the company's diversified portfolio and strategic partnerships enhance its market position, making it resilient against economic fluctuations. They highlight the importance of Alfabs' focus on sustainability and technology integration as key drivers for future profitability. Furthermore, the fund managers are optimistic about the company's recent expansion into new markets, which they see as a way to increase revenue streams. Overall, they consider Alfabs to be well-positioned for long-term growth, with strong fundamentals and a clear strategic vision that align with current market trends.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Source: Trading View
Commentary From The Managers
Salter Brothers
10 Sept 2025
$0.52
Summary
- Alfabs share price experienced a notable uplift both ahead of and following its full year results, reversing a period of drift due to limited news flow.
- The company reported a positive update in August, growing their EBITDA by 39% to $27.6m from $19.8m in PCP.
- Alfabs earnings outlook remains strong with a full year contribution of Malabar assets to be recognised in FY26.
- A promising growing engineering pipeline supports future growth.
- The company continues to invest growth capital in their hire fleet to capture further inbound opportunities.
- Alongside the full year results, Alfabs increased their second half fully franked dividend to 1.7 cents from 1.5 cents in the first half of 2025.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Commentary From The Managers
Salter Brothers
10 Sept 2025
$0.52
- Alfabs share price experienced a notable uplift both ahead of and following its full year results, reversing a period of drift due to limited news flow.
- The company reported a positive update in August, growing their EBITDA by 39% to $27.6m from $19.8m in PCP.
- Alfabs earnings outlook remains strong with a full year contribution of Malabar assets to be recognised in FY26.
- A promising growing engineering pipeline supports future growth.
- The company continues to invest growth capital in their hire fleet to capture further inbound opportunities.
- Alongside the full year results, Alfabs increased their second half fully franked dividend to 1.7 cents from 1.5 cents in the first half of 2025.
Summary
Salter Brothers
28 Aug 2025
$0.45
- Alfabs Australia Ltd (AAL) has shown positive progress in its first full year as a listed ASX company.
- Looking ahead to FY26, sales are expected to exceed FY25 levels due to the Malabar assets becoming fully operational.
- Strong demand across NSW and QLD is anticipated, driven by increased growth for Bat Bags amid new legislation requirements.
- The company’s workshops in Kurri Kurri, Mackay, and Wollongong have operated at robust capacity, with ongoing investments in expanding capabilities.
- Alfabs maintains a solid financial position, ending the year with approximately $10 million in cash and around $20 million in net debt.
- This financial flexibility allows for future deployment of resources.
- At the half-year results, Alfabs declared a maiden dividend of 1.50 cents per share, reflecting strong cash flow and confidence in continued earnings growth.
- Overall, business conditions remain positive, and the outlook for FY26 is encouraging.
- The company’s proven track record of delivering reliable, high-quality work supports its growth trajectory as it capitalises on market opportunities.
Summary
Salter Brothers
19 Aug 2025
$0.45
- Alfabs Australia Ltd is a family-owned and operated company since 1986, with the founding family retaining 50% ownership.
- The group operates across diversified segments, including engineering, mining equipment, protective coatings, transport/logistics, and hire equipment.
- Salter Brothers participated in their Pre-IPO, and Alfabs has become a top 5 holding, reflecting confidence in its long-term growth potential.
- Alfabs Engineering is a premier contractor in New South Wales, known for high-quality off-site fabrication services, with notable projects including the northern concourse roof at Sydney Central Station.
- In the first half of 2025, this segment reported an EBITDA of $3.6 million, a significant increase from $2.2 million in the first half of 2023.
- Alfabs is experiencing strong growth in their mining hire and maintenance business, leveraging engineering skills for above-market returns on capital.
- In FY25, the company delivered all hire equipment to the Malabar mine, with positive impacts expected in financial results.
- Currently, Alfabs trades on a FY25 EV/EBITDA of 3.2x and a 6.5x PE, offering a compelling valuation compared to peers.
- With a forecasted dividend yield of over 8%*, Alfabs presents a strong value play driven by continued contract wins and sector expansion.
Summary
Salter Brothers
28 Feb 2025
$0.48
- Alfabs Australia Ltd (AAL) showed strong performance in February with impressive first-half results.
- The company reported a first-half EBITDA of $12.5 million, marking a 21% increase compared to the prior year.
- A maiden interim dividend of 1.5 cents per share was declared.
- Salter Brothers continues to hold a high conviction in the Alfabs team's capability to leverage secured opportunities.
- There is an expectation for stronger earnings in the second half of the year.
Summary
Salter Brothers
31 Jan 2025
$0.42
- Alfabs Australia Ltd (AAL) recorded a modest gain during the period, reaffirming its new valuation.
- Significant re-rating occurred in the final months of 2024.
- No new news flow from Alfabs was observed in January.
- Market sentiment remains strong, driven by potential market share opportunity.
- A large competitor has appointed auditors, influencing market dynamics.
- The Manager looks forward to 1H25 results.
- Anticipation for an operational update on the fully operational Malabar contract.
Summary
Salter Brothers
30 Nov 2024
$0.38
- Alfabs Australia Ltd (AAL) has seen sustained share price appreciation in November.
- Chairman Bill Wavish delivered a positive address during the AGM.
- The on-site fabrication facility is fully booked for Q2 and Q3.
- Promising outlook is anticipated for Q4.
- Demand is driven by new mine openings and mining project commencements.
- Supply of Alfabs products is expected to be surpassed by demand over the next two years.
- Salter Brothers remains confident in the Alfabs team's capabilities to capitalize on incoming opportunities.
Summary
Salter Brothers
31 Oct 2024
$0.32
- Alfabs Australia Ltd (AAL) experienced a positive re-rating in October.
- Increased market understanding and a successful investor day enhanced confidence in AAL’s management and growth strategy.
- The investment team at Salter Brothers holds strong conviction in Alfabs’ near-term outlook.
- Robust contract wins include the $42m Malabar hire contract, with most equipment already in use.
- Aflabs is making progress on alternative hire projects at Dartbrook and other smaller initiatives.
- The company has sharply increased production of its “Bat Bags” due to new legislative changes in NSW, which have doubled demand requirements.
- This creates a powerful tailwind for future growth.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who has invested in Alfabs Australia Ltd (ASX:AAL)?
Fund managers including Salter Brothers have invested in Alfabs Australia Ltd (ASX:AAL).
Why have investment managers invested in Alfabs Australia Ltd (ASX:AAL)?
Fund managers have invested in Alfabs Australia Ltd (AAL) due to its strong financial performance and growth potential. The company reported a notable 21% increase in EBITDA to $12.5 million in its first-half results, alongside a maiden interim dividend, indicating robust earnings. Market sentiment is further bolstered by strategic contract wins, including a significant $42 million contract for the Malabar project, and a fully booked fabrication facility, ensuring sustained demand driven by new mining projects. Fund managers express high confidence in Alfabs' management team to capitalize on these opportunities, particularly as the company positions itself to meet increased market demand, especially in light of recent legislative changes in NSW that have doubled demand for its products.
What happened to Alfabs Australia Ltd (ASX:AAL)?
In September 2025, fund manager Salter Brothers highlighted Alfabs Australia Ltd's share price uplift to approximately $0.52, driven by a 39% EBITDA growth to $27.6 million and a strong earnings outlook with full year contributions from Malabar assets anticipated in FY26. The company also increased its fully franked dividend to 1.7 cents, reflecting solid financial health. Earlier, in August 2025, Alfabs reported positive progress as a listed ASX entity, with expectations for FY26 sales to surpass FY25 levels, bolstered by strong demand in NSW and QLD. The engineering division's impressive EBITDA growth and robust operational capacity, alongside a strong cash position, underscore Alfabs' promising growth trajectory and competitive advantage in the mining hire sector.