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Downer EDI (DOW) investor relations material

Downer EDI H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary21 Aug, 2025

Executive summary

  • Portfolio simplification strategy largely complete, focusing on core infrastructure markets and technical capability across asset lifecycles, with significant financial turnaround in FY25.

  • Transformation program delivered $213M in annualized cost out, exceeding targets.

  • Portfolio reshaped through divestment of non-core, underperforming, and low-margin businesses.

  • High-quality, diversified order book with $35.1B work-in-hand and $4.5B preferred bidder status.

  • Strong focus on performance culture, governance, and risk management under new leadership.

Financial highlights

  • FY25 underlying NPATA of $279M, up 33% year-over-year, at the top end of guidance; statutory NPAT up 82% to $149M.

  • Pro forma EBITA increased 19.8% to $459M; EBITA margin improved to 4.4% from 3.2%.

  • Pro forma revenue of $10.6B, down 2.5% year-over-year, reflecting divestments and focus on revenue quality.

  • Free cash flow increased to $324M; operating cash flow at $563M with 98% cash conversion.

  • Net debt reduced by 45% to $259M; leverage at 0.9x EBITDA, down from 1.4x.

  • Total dividends for FY25 at $0.0249 per share, up 46% year-over-year, with a 63% payout ratio and 89% franking.

Outlook and guidance

  • FY26 underlying revenue expected to be flat or slightly lower than FY25 pro forma; EBITA margin targeted to improve.

  • Management targets >4.5% average EBITA margin across FY25 and FY26.

  • Australian road volumes to remain subdued, gradual return to historical spend; New Zealand transport programs support demand.

  • Growth anticipated in power projects, water, and Facilities segments, with margin performance supported by contract completions.

  • Continued focus on portfolio simplification, operational modernization, and digital transformation.

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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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