Duratec (DUR) H2 2025 earnings summary

Executive summary

• Achieved record FY25 revenue of $573 million, up 3.1% year-over-year, driven by strong Energy and Emerging sector performance.

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

• NPAT increased 6.5% to $22.8 million; EPS rose to 9.10 cents.

• Cash balance at year-end was $84 million, up 28.8% from FY24, supporting growth and strategic investments.

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

Financial highlights

• Gross margin improved to 18.6% from 17.3% in FY24, resulting in gross profit of $106.3 million.

• Cash conversion rate was 98%, with net cash flow from operations of $36 million.

• Total dividend for FY25 was 4.25 cents per share, up 6.25% year-over-year, fully franked.

• Net assets increased 25.7% to $74.3 million.

• Borrowings increased due to asset financing and a short-term cash advance, with facilities expanded to $294 million.

Outlook and guidance

• Entering FY26 with an order book of $390 million and a pipeline of $4.16 billion, plus $1.65 billion in tenders.

• FY26 outlook is positive across all sectors, with consensus EBITDA target of $60 million and multiple growth pathways.

• MSA annuity-style contracts are expected to continue growing, representing 31% of FY25 revenue.

• No significant delays anticipated in major defense projects; 95% of the order book expected to convert to revenue in FY26.

• Strategic focus remains on organic growth, selective acquisitions, and expanding into new markets as opportunities arise.