Bigger builder profits for FY24: Has the housing industry turned a corner?
Metricon believes that the nation’s construction crisis is coming to an end.
The construction firm, which touts itself as Australia’s “biggest home builder”, reported a steady rise in profits over the 2023–24 financial year, marking a new era of prosperity for the company – and perhaps for the construction sector as a whole.
“After weathering a tumultuous period, our recent results indicate a strong future is on the horizon for the housing construction industry,” said Metricon CEO Brad Duggan.
“The Australian construction industry is robust, and it is time to look at it more positively.”
Last financial year, Metricon reported an EBITDA of $33.5 million. This year, the figure jumped to $42.2 million – a 25 per cent increase.
While the company attributed a number of factors to the increase in profits – including improved efficiency and stabilising labour costs – one standout feature from the 2023–24 financial year was a leap in customer demand.
According to Metricon, the business saw “significant increase” in customers looking to build a home, with deposits surging from 3,303 in FY23 to 5,279 in FY24.
Some of the largest increases were seen in metropolitan Victoria, where deposits increased from 1,554 to 2,330 year-on-year, and in Queensland, where deposits doubled from 706 in FY23 to 1,443 in FY24.
“With many Australians on the edge of their build decision, we hope these results will instil confidence in those on that journey that choosing to build now is a good decision,” said Duggan.
To meet the growing needs of consumers, Metricon stated it has focused on improving efficiency in order to quickly bring projects to completion – with some single-storey homes built in under 100 days.
Stabilising labour costs played a significant part in this uptick in completion speed, along with tightened relationships with key suppliers.
“To engender trust in Australians looking to build their dream home, we have doubled down on strengthening our relationships with the best suppliers in the market to ensure we uphold the great design, quality and efficiency that we are known for,” Duggan said.
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