DRA Global (DRA) H1 2024 earnings summary

Executive summary

• Revenue for 1H24 rose to A$444.9M, up 4.8% year-over-year, with all business units contributing and EMEA projects leading growth.

• Underlying EBIT increased to A$30.3M from A$23.5M, while statutory NPAT fell to A$6.0M due to higher tax and non-recurring items.

• Net cash position remained strong at A$117.4M after full bank debt repayment and dividend distribution.

• Secured A$221M in new contracts, expanding work-in-hand to A$678M and maintaining a robust A$4.2B pipeline.

• Positive earnings achieved across all segments, with diversified project wins and no major injuries reported.

Financial highlights

• Revenue reached A$444.9M, up from A$424.4M in 1H23.

• Underlying EBIT rose to A$30.3M; statutory EBIT dropped to A$9.5M, and statutory NPAT fell to A$6.0M.

• Underlying NPAT increased to A$20.6M from A$16.1M in 1H23.

• Net cash at A$117.4M, with gearing reduced to 0.5% from 7.4% at FY23.

• Basic EPS was 9.66 cents, down from 32.44 cents in 1H23.

Outlook and guidance

• 2H24 outlook remains positive, supported by a robust A$4.2B pipeline and diversified revenue.

• Focus on quality of earnings, operational discipline, and capital allocation priorities.

• Bank facility renewal expected to conclude in Q3 2024.

• Key risks include skilled labour shortages, pipeline changes, and inflationary pressures.