Duratec (DUR) H1 2025 earnings summary

Executive summary

• First half FY25 revenue was AUD 287.3 million, down 1.9% year-over-year but up 9.2% sequentially, with record normalized EBITDA of AUD 26.9 million and NPAT of AUD 13.0 million, reflecting margin improvement and operational strength.

• Interim dividend of AUD 1.75 per share declared, up 16.7% year-over-year, with a strong net cash position of AUD 60.8 million and a stable order book of AUD 410 million.

• Strategic acquisitions, including GF Engineering and RC Constructions, and facility consolidations support growth and diversification across sectors.

• Gross margin improved to 18.5%, driven by higher-margin sector mix and Early Contractor Involvement (ECI) works.

• Cash conversion improved to 84%, reflecting operational efficiency and strong working capital management.

Financial highlights

• Revenue: AUD 287.3 million (down 1.9% year-over-year, up 9.2% sequentially); Normalized EBITDA: AUD 26.9 million (up 12.3% year-over-year); NPAT: AUD 13.0 million (up 6.1% year-over-year); EPS: AUD 5.19 (up 4.6%).

• Gross margin: 18.5% (up from 16.2% year-over-year), gross profit AUD 53.3 million.

• Net assets: AUD 67.4 million, up 14.1% from June 2024.

• Cash at 31 Dec 2024: AUD 60.8 million; cash conversion rate: 84%.

• Interim dividend: AUD 1.75 per share, up 16.7% year-over-year.

Outlook and guidance

• Order book remains healthy at AUD 410 million, with a strong pipeline and high tender activity, especially in energy and emerging sectors.

• FY25 revenue guidance: AUD 600–640 million; EBITDA guidance: AUD 52–56 million.

• Medium- and long-term outlook is positive, supported by infrastructure investment, ECI contract uptake, and sectoral tailwinds.

• Funded for future growth and potential strategic acquisitions.

• Recent expansion of credit and bond facilities post-period end supports future growth.