Duratec (DUR) H1 2026 earnings summary

Executive summary

• Revenue for 1H FY26 was AUD 273.3 million, down 4.9% year-over-year due to project timing, but record revenue achieved in Building & Facade and Emerging Sectors.

• Normalized EBITDA rose 2.0% to AUD 27.5 million, with a record 10.0% margin; NPAT increased 3.5% to AUD 13.4 million, and EPS grew 1.2% to 5.25 cents.

• Strategic acquisitions of EIG Australia and RGK Resources expanded technical capabilities and sector reach, supporting future growth.

• Strong order book of AUD 400 million and pipeline of AUD 4.6 billion, with major project awards anticipated in the near term.

• Subsidiaries and emerging sectors delivered robust performances, contributing to diversification and margin strength.

Financial highlights

• Revenue: AUD 273.3 million (-4.9% YoY); Gross Profit: AUD 55.4 million (+3.9% YoY); Normalized EBITDA: AUD 27.5 million (+2.0% YoY); NPAT: AUD 13.4 million (+3.5% YoY).

• Gross margin improved to 20.3% from 18.5% YoY.

• Net cash: AUD 76.0 million as of December 31, 2025, down from AUD 84.0 million at June 2025.

• Interim dividend: AUD 0.0175 per share, fully franked.

• Net assets: AUD 84.8 million, up 14% from prior period.

Outlook and guidance

• Revenue and EBITDA expected to grow in the second half, supported by a rising order book and major project awards.

• Focus on expanding MSA annuity work and capitalizing on major infrastructure investments.

• Guidance to be reviewed and potentially updated after major project awards.

• Anticipates robust contributions from subsidiaries and further growth from strategic acquisitions.

• Positive momentum anticipated in Defence, Energy, Mining, and Building & Facade sectors.