Downer EDI
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Downer EDI (DOW) investor relations material

Downer EDI H1 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H1 2026 earnings summary18 Feb, 2026

Executive summary

  • Statutory NPAT rose 30% to AUD 98 million, with underlying NPATA up 7% to AUD 136.1 million and EBITA up 11.2% to AUD 227.1 million, reflecting improved contract delivery, margin expansion, and portfolio simplification.

  • EBITDA margin reached 4.6%, the highest in over a decade, with all segments contributing to margin uplift.

  • Interim dividend increased 19% to AUD 0.129 per share, fully franked, with a payout ratio of 65%.

  • Work in hand grew 8.9% to AUD 38.2 billion, driven by strategic wins in energy, water, defence, and transport.

  • Portfolio simplification and focus on higher-quality revenue have enhanced earnings predictability and reduced volatility.

Financial highlights

  • Underlying revenue declined 3.6% year-over-year to AUD 4.9 billion, mainly due to lower Transport and Energy & Utilities revenue and divestments.

  • Underlying EPS increased 10% to 18.7cps; cash conversion was strong at 90.5%, exceeding the >90% target.

  • Statutory NPAT increased 30% to AUD 98 million; underlying NPATA up 7% to AUD 136 million.

  • Operating cash flow (adjusted for interest and tax) was AUD 312 million, up 6.4% half-on-half.

  • Free cash flow for the half was AUD 105 million.

Outlook and guidance

  • FY26 underlying revenue expected to be slightly lower than FY25 pro forma, with further EBITA margin improvement targeted.

  • NPATA guidance for FY26 is AUD 295–315 million, assuming stable economic and market conditions.

  • Management targets underlying EPS CAGR of 9% from FY25 and revenue growth of 4–5% CAGR from FY26 to FY30.

  • Margin expansion and earnings growth expected in the second half, with seasonality and ramp-up of new contracts supporting performance.

  • Ongoing share buy-back program up to 5% of issued capital underway.

Assess portfolio simplification's margin impact
Detail FY26 AUD MTN refinancing strategy
Address safety performance trends and initiatives
Detail FY26 revenue decline drivers
What is the strategy for inorganic growth?
Expected impact of transformation investment
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H2 202620 Aug, 2026
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Frequently asked questions

Downer EDI Limited is an Australian company providing integrated services across sectors such as infrastructure, transport, energy, and facilities management. The company offers a wide range of services, including road and rail construction, maintenance, mining, utility services, and renewable energy solutions. Downer serves both public and private sector clients, managing projects from design and engineering to delivery and ongoing asset maintenance. The company is headquartered in Sydney, Australia, and its shares are listed on the ASX.

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