Perenti (PRN) investor relations material

Executive summary

• Revenue for 1H26 was $1.73 billion, flat year-over-year, with underlying EBIT(A) up 3% to $160.1 million and underlying NPAT(A) up 12% to $91.8 million; statutory NPAT increased 10.9% to $70.5 million.

• Interim dividend declared at 3.25 cents per share, up 8% from 1H25, reflecting confidence in future performance.

• Portfolio reshaped by exiting underperforming projects, focusing on higher-margin opportunities, especially in North America.

• Safety and sustainability initiatives advanced, including enhanced safety frameworks, leadership training, and climate risk assessments.

• CEO transition announced, expected to conclude by end of FY26.

Financial highlights

• Underlying EBIT(A) was $160.1 million, up 3.2% year-over-year; underlying NPAT(A) was $91.8 million, up 12.4%; EBIT(A) margin improved to 9.3%.

• Normalised free cash flow rose to $33.1 million, up 8% year-over-year; net debt reduced to $385.3 million.

• Leverage improved to 0.6x from 0.9x, reflecting prudent balance sheet management.

• Interim dividend of 3.25 cents per share declared, up 8% from 1H25.

• Net operating cash inflow was $132.0 million, down 12.7% year-over-year, impacted by delayed debtor receipts.

Outlook and guidance

• FY26 revenue guidance narrowed to $3.45–$3.55 billion due to AUD:USD exchange rate movements; EBIT(A) guidance set at $335–$350 million.

• Free cash flow guidance increased to greater than $170 million for FY26; capex guidance reduced to $325 million.

• Earnings and cash flow expected to be second half-weighted, with EBITDA/EBIT(A) growth anticipated from all divisions.

• Strong pipeline with $5.8 billion work in hand and $18.6 billion in identified opportunities, especially in North America and Australia.

• Additional EBIT(A) growth anticipated from margin and operational improvements in Contract Mining and rising utilisation in Drilling Services.