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.

• Interim dividend increased to 3.0 cents per share, up from 2.0 cents, reflecting board confidence and robust cash generation.

• Statutory NPAT declined to AUD 63.5 million due to the absence of prior year's one-off acquisition gain and higher finance costs.

• FY25 guidance reaffirmed, with revenue expected at AUD 3.4–3.6 billion, EBIT(A) at AUD 325–345 million, and free cash flow exceeding AUD 150 million.

• Balance sheet strengthened with leverage at 0.9x, targeted to reduce to 0.6–0.7x by year-end.

Financial highlights

• EBITDA margin at 18.6% (down year-over-year); EBIT(A) margin at 9.0%; NPAT(A) margin at 4.7%.

• Adjusted free cash flow for H1 was AUD 30.6 million after late debtor receipts; cash conversion at 84%.

• Net interest costs rose to AUD 35.8 million, mainly from new US notes at 7.5% interest.

• Net debt at AUD 598 million; liquidity at AUD 600 million with AUD 334.6 million undrawn facilities.

• Net capital expenditure for 1H25 was AUD 163 million, aligning with FY25 forecast of ~AUD 330 million.

Outlook and guidance

• FY25 guidance reaffirmed: revenue AUD 3.4–3.6 billion, EBIT(A) AUD 325–345 million, capex ~AUD 330 million, free cash flow >AUD 150 million, leverage 0.6x–0.7x.

• Second half expected to be stronger across all divisions, with contract mining and BTP fleet utilization driving the uptick.

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

• Dividend policy targets 30–40% payout of underlying NPAT(A).

• Modest improvement in exploration drilling anticipated, but guidance is not dependent on a significant uptick.