Cyber security helps drive Spirit's FY25 revenues over $100m

Cyber security was the big revenue driver for Spirit Group's FY25 results, which saw the company post overall revenues of $102.4m versus $90.9m in FY24.

The revenue of the company's cyber security segment was up 58% on FY24 to $29.5m.

In terms of underlying EBITDA (uEBITDA) contribution by division, Cyber Security has grown from 12% of the business in FY23 to 46% of the business in FY25, positioning the Spirit Group to "further benefit from strong structural industry tailwinds", according to the company.

Those figures included a full year contribution of managed cyber security services provider Infotrust and contribution from the 2024-acquired Forensic IT from the date of effective control of 1 October 2024.

Spirit said cyber security investment was "accelerated" with the acquisition of Forensic IT, providing the company with "enhanced capabilities and opportunities for cross-sell opportunities".

The company also said that customers increasingly seek a provider who can "deliver integrated, 'security-optimised' solutions that embed cyber security controls and practices into all elements of their IT management".

The overall uEBITDA for Spirit Group jumped 562% in FY25 as it rose to $11 million from $1.7m in FY24.

The turnaround of the Secure Managed Technology division continues, with a positive contribution of $0.3m in FY25, up from a loss of $4.6m in FY24.

Spirit’s managed services include designing, configuring, installing and monitoring secure technology services and secure networks, alongside delivering specialised physical security services to businesses.

The company said the FY25 result "reflects the focus on stabilising and restructuring this segment and efforts to return the segment to positive earnings momentum", with the board appointing Dan Suto as executive group manager in March 2025 to build on the improving earnings momentum.

The Cloud and Communications division of Spirit Group was also back to growth in FY25, with uEBITDA of $7.7m, up 18% on FY24 figures.

This segment of the Group provides integrated solutions to small and medium-sized businesses, combining hardware, software, installation, configuration, and managed voice, collaboration and data connectivity. Offerings are tailored for frontline teams requiring advanced communication systems alongside workplace collaboration tools and Cisco is the segment’s principal strategic partner.

Spirit Group said that there is ongoing segment investment to facilitate growth opportunities in FY25, including broadening its sales channel and footprint by establishing new points of presence in Western Australia and South Australia.

In its FY26 outlook, Spirit said that improved profitability is expected in uEBITDA in FY26, with Cyber Security set to be the largest earnings contributor in FY26.

Margin accretion opportunities from the Cyber Security segment's expanded offerings and scale, along with a positive earnings contributions expected from all segments, including accelerated profit by Secure Managed Technology, was also highlighted by the company as FY26 expectations.

Spirit also said that it will pursue both organic and inorganic growth in FY26, with "further strategic acquisitions in Cyber Security and Secure Managed Technology to accelerate growth" mentioned as one of the company's growth pillars.