Duratec (DUR) H1 2026 earnings summary

Executive summary

• Achieved record normalized EBITDA and NPAT for the first half of FY 2026, despite revenue declining 4.9–5% year-over-year to AUD 273.3 million due to project timing and delivery phasing; record revenue achieved in Building & Facade and Emerging Sectors.

• Gross profit reached a record high for the period, with strong margins across all sectors and robust subsidiary performance supporting diversification and margin strength.

• Strategic acquisitions (EIG Australia, RGK Resources) and investments in business systems expanded technical capabilities and sector reach, supporting future growth.

• Strong order book and pipeline, 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, down 4.9–5% year-over-year due to project timing.

• Normalized EBITDA: AUD 27.5 million, up 2% year-over-year; margin lifted to 10%.

• NPAT: AUD 13.4 million, up 3.5–4% year-over-year.

• EPS: AUD 0.0525, up 1.2% year-over-year.

• Interim dividend: AUD 0.0175 per share, fully franked, declared for payment on 29 April 2026.

• Gross profit: AUD 55.4 million, up 3.9–4% year-over-year, highest half-year gross profit.

• Net cash: AUD 76 million as of December 31, 2025.

• Net tangible assets per share rose to 25.45 cents from 21.32 cents year-over-year.

Outlook and guidance

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

• Order book increased to AUD 400 million as of 23 Feb 2026, with a pipeline of AUD 4.6 billion and tenders at AUD 1.8 billion.

• Gross margins across sectors seen as sustainable, with minor fluctuations expected.

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

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