Duratec (DUR) H2 2025 earnings summary

Executive summary

• Achieved record FY 2025 revenue of $573 million, up 3.1% year-over-year, driven by strong energy and emerging sector performance.

• Normalized EBITDA reached a record $53 million, up 11.3% year-over-year, with margin improvement to 9.2%.

• NPAT increased 6.5% to $22.8 million; EPS rose 5% to $0.091.

• Workforce grew to 1,265 employees, with continued investment in safety, sustainability, and apprenticeships.

• Cash position strengthened to $84 million, up 28.8% from FY24, supporting growth and strategic investments.

Financial highlights

• Gross margin improved to 18.6% from 17.3% in FY 2024, resulting in gross profit of $106.3 million.

• Cash balance at year-end was $84 million, supporting growth and operational needs.

• Total dividend for FY 2025 was $0.0425, up 6.25% year-over-year, with a payout ratio of 47%.

• Net assets increased 25.7% to $74.3 million; cash conversion rate was 98%.

• Strong cash conversion (98% OCFBIT/EBITDA); net cash flow from operations of $36 million.

Outlook and guidance

• Order book stands at $319 million, with a strong pipeline and high confidence in converting ECI projects worth up to $500 million.

• FY 2026 outlook is positive across all sectors, with consensus EBITDA target of $60 million and multiple pathways to achieve it.

• MSA annuity-style contracts are expected to continue growing, particularly in energy and mining, representing 31% of FY25 revenue.

• No significant delays anticipated in major defense projects; 95% of the order book expected to convert to revenue in FY 2026.

• Well-funded for future expansion with increased banking facilities and a robust project pipeline.