Dicker Data (ASX:DDR) executives said the company delivered a “very strong” FY25 result, exceeding guidance on both gross revenue and operating profit, while pointing to accelerating opportunities in software subscriptions, AI infrastructure projects, and an expected lift in New Zealand growth.
FY25 results exceeded guidance
Chief Financial Officer Mary Stojcevski said the group finished FY25 with total gross revenue of AUD 3.9 billion, up 14.9% year over year and “just short” of the company’s AUD 4 billion target. Stojcevski said the business would be “definitely aspiring” to exceed that threshold in FY26.
On profitability, Stojcevski said EBITDA rose at a lower rate than revenue due to “slightly lower margins,” but net operating profit before tax increased 10.1%, supported by cost management, lower interest costs, and higher gross profit dollars. Earnings per share were AUD 0.474, up 8.6%.
Gross profit dollars increased to AUD 347 million at a 9% margin, which management said was in line with expectations. Stojcevski attributed margin compression to a shift in customer mix, with a larger contribution from enterprise customers while the SMB market remained “slightly subdued.”
Australia and New Zealand performance
Stojcevski said the Australian business delivered gross revenue growth of 17.2%. She also highlighted over AUD 45 million of incremental new revenue in Australia tied to “AI-specific deals,” clarifying these were project-based AI deals and did not include categories such as AI PCs.
Australian operating profit before tax rose 8.2%, which management linked to reduced interest costs and stable debt balances. Australian profit margins were described as in line with expectations at roughly 3.5%, while gross margin compression was attributed to customer mix rather than a broader margin issue.
In New Zealand, Stojcevski said revenue growth was weaker due to rebalancing the consumer business while growing commercial, but profitability improved sharply. Profit before tax in New Zealand increased 37.2% after cost reductions across categories including headcount and interest. Gross margin in New Zealand held at 8.5%, with management noting the larger consumer exposure makes it harder to achieve Australian-style margins. Management said it is working to lift New Zealand profit-before-tax margins above 2% over time.
Balance sheet and dividends
Stojcevski said the company reduced its investment in working capital by AUD 12.2 million over the year. While total debt increased slightly, net debt decreased by AUD 12.8 million. She added the company ended the year with “strong cash” and said existing facilities provide funding capacity to support growth.
On capital returns, Dicker Data declared a final dividend of AUD 0.115 for FY25. Management said this represented a shift from its previous practice of paying out 100% of profits, with a revised payout framework of 80% to 100%, depending on cash and capital needs. The company will keep its quarterly dividend structure, and introduced a discount under its dividend reinvestment plan (DRP) for participating shareholders.
Segment drivers: software strength, AI, and PC refresh dynamics
Chief Operating Officer Vladimir Mitnovetski said FY25 growth was broad-based, led by software subscriptions, with “every single software vendor” showing growth. He pointed to momentum across major vendors and categories including Microsoft, Adobe, VMware, Citrix, data management, and cybersecurity.
Mitnovetski said endpoint solutions outperformed expectations, but growth leaned more toward enterprise and mid-market customers than the company’s traditional SMB base. He cited a PC refresh cycle that he said has reached roughly 60% to 70% completion depending on vendor reporting, with at least another 30% still expected, “a lot of that refresh to come from the small business.”
He also emphasized advanced solutions and AI infrastructure as major growth opportunities. Mitnovetski said Dicker Data deployed its “first sovereign AI factory” in partnership with Dell Technologies and is building proof-of-concept stacks with other vendors including Cisco and HPE. He also said the company signed an exclusive contract for VAST Data, which he described as an enterprise storage platform supporting AI deployments.
FY26 outlook: AI deals, data center modernization, and pricing uncertainty
Looking ahead, Mitnovetski said he expects data center infrastructure (advanced solutions) to grow “somewhere around 20%+,” driven by AI and a broader data center modernization cycle. He said the company is seeing increased activity from government and other sectors investing in infrastructure upgrades.
Mitnovetski also said Dicker Data expects continued double-digit growth in software, and he flagged potential upside in New Zealand. However, he spent significant time addressing uncertainty around device pricing and component availability, particularly RAM. He said the company is seeing device price increases of roughly 30% to 35% so far, with a potential move to 40% to 45%, while volumes have not dropped materially based on January and February trends discussed on the call.
Mitnovetski described the environment as favorable for distributors with strong balance sheets and warehousing capacity, stating the company could benefit from holding inventory purchased at lower prices as price lists rise. During Q&A, he said SMB growth was 8% in Q4 FY25 versus the prior year period, and he expects unit volumes in SMB could be flat to slightly down in FY26, but revenue “should be very, very solid” due to higher prices.
On AI, Mitnovetski said the company invoiced around AUD 45 million of AI deals in FY25 and has secured additional deals to be invoiced in FY26. He said he is “very confident” the company will beat the FY25 AI figure, adding he believes it can double it in FY26.
Management also discussed longer-term expansion possibilities outside Australia and New Zealand, noting two established entities in the Philippines and Singapore currently support back-end operations. Mitnovetski said the company is taking a “measured approach” to potential APAC expansion, including testing options such as high-margin, lower-investment models like digital distribution. The company also plans to hold its TechX industry event in FY26 across Perth, Brisbane, Sydney, and Auckland.
About Dicker Data (ASX:DDR)
Dicker Data Limited engages in the wholesale distribution of computer hardware, software, cloud, access control, surveillance, and technologies in Australia and New Zealand. It sells its products to resellers partners. Dicker Data Limited was incorporated in 1972 and is headquartered in Kurnell, Australia.
