Perenti (PRN) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of AUD 1.73 billion (up 6% year-over-year), with EBITDA of AUD 323 million (+3%) and underlying EBIT(A) of AUD 155 million (+4.5%), driven by strong Drilling Services and steady Contract Mining performance.

• Statutory NPAT declined to AUD 63.5 million due to the absence of a prior year one-off acquisition gain and higher finance costs, while underlying NPAT(A) increased to AUD 81.7 million.

• Interim dividend increased to AUD 0.03 per share, up 50% year-over-year, reflecting board confidence and a payout policy of 30%-40% of underlying NPATA.

• Balance sheet strengthened with leverage at 0.9x, targeted to reduce to 0.6-0.7x by year-end, and liquidity of approximately AUD 600 million.

• FY25 guidance reaffirmed, with expectations for second-half tailwinds and growth across all divisions.

Financial highlights

• Revenue reached AUD 1.73 billion (+6% year-over-year); EBITDA AUD 323 million (+3.3%); EBIT(A) AUD 155 million (+4.5%); underlying NPAT(A) AUD 81.7 million (+4%).

• EBITDA margin at 18.6% (down 49 bps); EBIT(A) margin at 9.0% (down 13 bps); NPAT(A) margin at 4.7%.

• Free cash flow was negative AUD 11.8 million due to late debtor receipts, but adjusted free cash flow was AUD 30.6 million.

• Net capital expenditure was AUD 163 million, with net debt repayments of AUD 134 million.

• Net debt at AUD 598 million; available liquidity of AUD 599.8 million.

Outlook and guidance

• FY25 revenue guidance reaffirmed at AUD 3.4–3.6 billion; EBIT(A) expected between AUD 325–345 million; leverage targeted at 0.6–0.7x.

• CapEx forecast at approximately AUD 330 million; free cash flow to exceed AUD 150 million.

• Work-in-hand at AUD 4.7 billion with a pipeline of AUD 17.1 billion, supporting future growth.

• Second half expected to benefit from contractual margin growth, higher drilling utilization, and BTP fleet redeployment.

• Guidance is not dependent on a significant uptick in exploration; modest improvement is expected.