Hutchinson builders profit surges seven-fold but warns of looming Olympics cost crunch
Australia’s biggest private builder Hutchies has turned a $6.7m profit into $46.4m, but warns Olympic construction will send costs “crazy” by 2027.
Australia’s largest privately-owned builder has recorded a seven-fold increase in profit but warned that with construction for the Olympics set to crank up in 2027, building costs are expected to rise putting pressure on the sector.
Brisbane-based J Hutchinson Pty Limited, or Hutchies, recorded a $46.4m pre-tax profit in the 2025 financial year compared to $6.7m the previous year.
Over that period construction revenue lifted to $3.34bn compared to $3.33bn in the previous 12 months.
Hutchies chairman Scott Hutchinson said it was the first time in seven years that they were in the black without taking into account revenue other than from construction.
“But $16m of that pre-tax figure is rents and interest so we basically we made less than 1 per cent on revenue when we what we want is about 2.5 per cent,” he said.
“We lost money out of construction last year and this year we haven’t and that’s a huge turnaround from a loss to a profit. It’s turned around a lot because costs have stopped going up but they’ll go crazy in 2027 when the Olympics build hits.
“While the results aren’t marvellous it’s in the right direction and it's better than losing money.”
A fourth generation builder Mr Hutchinson said the 113-year-old family business, with a workforce of about 2000, currently about 130 projects on its books mostly in Queensland but also in NSW, Victoria, Tasmania and South Australia ranging from government work and office building, to shopping centres and apartments.
Hutchies was ranked in 14th place in the HIA-Colorbond Steel Housing 100 Report with 1141 dwelling starts in FY25 compared to 1745 the previous 12 months.
Some of the major Hutchies projects this year include the Monarch Residences in Brisbane, the Cairns Hospital Mental Health Unit, the Kingsford Terrace retirement village, and the Brisbane Girls Grammar School Junior School.
The company has $566.4m of cash and cash equivalent compared to $503.4m the previous year. It also recorded a $20m dividend through Class G shares which Mr Hutchinson said was put back into the company and paid down loans.
He said the return to profit came from a disciplined approach and the end of unsustainable cost increases while loss-making project in Gold Coast were coming to an end.
“Building costs went up 40 per cent in 18 months and no one can survive that as a builder and make money and that all comes from the Reserve Bank cranking things up,” Mr Hutchinson said.
“It’s settled down now but costs are going to go up with the Olympics when everything starts taking off. It’s busy now, not crazy, but it will go off in 2027.
“We will be very careful on what we take on. It’s not the time to rapidly increase in size and we’ll be steady and do what we can do.”
