Duratec (DUR) H1 2025 earnings summary

Executive summary

• 1H FY25 revenue was AUD 287.3 million, down 1.9% year-over-year but up 9.2% sequentially, with normalized EBITDA of AUD 26.9 million (up 12.3%) and NPAT of AUD 13.0 million (up 6.1%), reflecting margin improvement and operational strength.

• Gross margin improved to 18.5%–18.6%, driven by higher-margin sector mix and ECI works.

• Interim dividend of AUD 1.75 cents per share, 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 (GF Engineering, RC Constructions), facility consolidations, and expanded banking facilities support growth and diversification across sectors.

• Record tenders at AUD 1.6 billion and a robust pipeline of AUD 4.1 billion, supporting future growth.

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%); NPAT: AUD 13.0 million (up 6.1%).

• Gross margin: 18.5%–18.6% (up from 16.2% year-over-year); gross profit AUD 53.3 million (up 12.5%).

• EPS: 5.19 cents (up 4.6% year-over-year); NPAT margin: 4.5% (up from 4.2%).

• Cash at 31 Dec 2024: AUD 60.8 million; net assets: AUD 67.4 million (up 14.1% from June 2024).

• Cash conversion rate: 84%; borrowings reduced to AUD 23.0 million.

Outlook and guidance

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

• Strong order book (AUD 410 million), robust tender pipeline (AUD 1.6 billion), and pipeline (AUD 4.1 billion) support confidence in future growth.

• Medium- and long-term outlook is positive, underpinned by infrastructure investment, ECI contract uptake, and sector tailwinds in Mining, Energy, and Building Maintenance.

• Energy sector and decommissioning activities expected to drive growth over the next decade.

• Funded for future growth and potential strategic acquisitions.