Data#3 reports solid performance in its 1H FY25 results

ASX 200 listed IT solutions provider Data#3 has announced its interim results for the first half of its 2025 financial year, reporting a period of sustained growth in earnings and gross sales.

The company said gross sales rose to $1.4 billion, a 7.4 per cent increase, alongside a 10 per cent rise in gross profit, which reached $143.6 million.

Despite a subdued and competitive market, Data#3 achieved a profit before tax of $32.0 million, a 4.1 per cent increase on the prior corresponding period. After tax earnings were up 4.3 per cent to $22.4 million.

The before-tax figure aligns with Data#3's guidance of $31 million to $33 million and increases to 7.0 per cent after adding back one-off restructuring costs of $0.9 million.

Data#3 said its success is underpinned by a leading market position, strong supplier relationships and long-standing customer base.

Recurring gross sales are up to 70 per cent, supported by strong growth in managed and maintenance services and software solutions.

On the negative side, Data#3's infrastructure solutions business unit reported a 12.9% decline in sales for the period, down to $234 million gross. 

This was due to ongling delays in customer decision making, the Queensland election, and a slower ramp in end-user compute sales than anticipated.

Data#3 has also received industry recognition with multiple awards and certifications, including being named an HRD Employer of Choice for the ninth consecutive year.

Operationally, Data#3 has seen its fastest growing solution in security, which is a top priority for its customers.

The company is ISO 27001 certified and has received vendor awards from HPE, Aruba, HP, Cisco, Dell Technologies and Lenovo.

Looking ahead, Data#3 anticipates IT spending to grow 8.7 per cent in 2025, driven by spending related to generataive artificial intelligence (GenAI) adoption.

Brad Colledge, chief executive of Data#3, said that Data#3 is well placed to deliver sustainable growth in FY25, noting a growing market, pent-up demand for devices, and increased interest in multi-cloud solutions and AI.