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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.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.
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