Australia is making significant strides in its electrification efforts, transitioning from policy discussions to tangible developments. Upgrades to power networks, the expansion of data centres, the growing prevalence of electric vehicles, and the modernization of commercial buildings are all contributing to a pressing need for enhanced electrical infrastructure. This shift is driving demand for companies that supply the necessary equipment and services. Two notable ASX-listed firms poised to benefit from this trend are IPD Group Ltd (ASX: IPG) and SKS Technologies Group Ltd (ASX: SKS).
IPD Group Ltd: Strengthening the Supply Chain
IPD Group occupies a vital position in the supply chain for electrical and automation equipment. The company distributes a wide range of products utilized in power distribution, industrial systems, data centres, renewable energy, and mining operations. In December 2023, IPD Group made headlines with its acquisition of Platinum Cables for an upfront payment of $37.5 million, with potential additional payments of up to $7.5 million tied to profit growth through December 2026.
Platinum Cables reported a remarkable revenue of $44.8 million for FY2025, alongside operating earnings (EBITDA) exceeding $8 million. The management at IPD Group anticipates that this acquisition will be earnings accretive by approximately 11.5% on a pro forma FY2025 basis, before considering any synergies. This strategic move not only expands IPD Group’s presence in the specialist electrical cabling sector but also enhances its capabilities in mining, infrastructure, and large-scale projects. Notably, Platinum Cables will maintain its operations as a standalone entity under its current management team.
Beyond the acquisition, IPD Group has reported improving conditions in commercial construction and engineering sectors. The management highlighted growth in non-residential building activities and an uptick in engineering construction, driven by rising demand linked to data centres, electric vehicle charging infrastructure, and broader grid upgrades. In essence, IPD Group stands to benefit as Australia invests in building and upgrading systems that facilitate the safe and efficient movement of electricity.
SKS Technologies Group Ltd: Delivering Integrated Solutions
In contrast, SKS Technologies focuses on the delivery of infrastructure rather than the supply of components. The company provides a comprehensive suite of services, including electrical, IT, communications, and audio-visual solutions. SKS Technologies manages projects from design and installation to integration and ongoing maintenance, with approximately 94% of its revenue stemming from repeat customers.
A significant portion of SKS Technologies’ success in recent years has been attributed to its work in the data centre sector, which now accounts for more than half of its FY2025 revenue. Data centre-related revenue surged from $31 million in FY2024 to over $140 million in FY2025, driven by substantial investments from global technology firms. In May 2025, SKS Technologies secured a notable $100 million contract to develop a third data centre facility in Melbourne for an international hyperscale operator, marking a continuation of its growth trajectory.
During its recent annual general meeting, the management of SKS Technologies outlined optimistic expectations for the upcoming year, forecasting revenue of around $320 million backed by a robust project pipeline.
Significance of Electrification in Australia
Australia’s need for enhanced energy and digital infrastructure is becoming increasingly critical. As electricity demand continues to rise due to the electrification of transport, industry, and buildings, the pressure on power grids and related systems intensifies. Concurrently, data usage is experiencing rapid growth, driven by advancements in cloud computing, artificial intelligence, streaming services, and enterprise digital systems.
These trends necessitate reliable infrastructure that businesses, households, hospitals, and governments depend on. Delays in upgrading existing systems can lead to increased future costs and heightened risks to functionality.
Long-term forces driving this demand include the electrification of transport and industry, the expansion of data centres, grid modernization efforts to accommodate renewable energy sources, and urban growth that elevates baseline power requirements. These are not short-term fluctuations but rather multi-decade trends that will shape Australia’s economic landscape.
Both IPD Group and SKS Technologies operate in different facets of the same overarching system. Their activities highlight Australia’s urgent need to construct, upgrade, and maintain critical electrical infrastructure. For investors focused on long-term national trends, these companies exemplify how the electrification movement is manifesting in the real economy.
In conclusion, as Australia continues its push towards electrification, firms like IPD Group and SKS Technologies are well-positioned to play pivotal roles in this transformation. Their contributions will not only support national growth but also ensure the reliability of essential services for years to come.
