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 EBITA of AUD 155 million (+5%), in line with forecasts and supporting full-year guidance.

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

• Free cash flow was negative AUD 11.8 million due to late debtor receipts, but adjusted free cash flow was AUD 30.6 million, keeping FY 2025 guidance of >AUD 150 million on track.

• Leverage at 0.9x, expected to reduce to 0.6-0.7x by year-end, with a strong balance sheet and liquidity of circa AUD 600 million.

• Leadership changes included a new CFO and President of Drilling Services, with a strategic focus on safety and operational discipline.

Financial highlights

• Revenue reached AUD 1.73 billion (+6% vs prior year); EBITDA AUD 323 million (+3%); EBITA AUD 155 million (+5%); NPAT (A) AUD 82 million (+4%).

• EBITDA margin at 18.6% (down 49 bps); EBITA margin at 9.0% (down 13 bps); NPAT (A) margin at 4.7% (down 9 bps).

• Operating cash conversion at 71%, impacted by late debtor receipts; adjusted to 84% with normalization.

• Net debt at AUD 598 million; liquidity of AUD 599.8 million with AUD 334.6 million undrawn facilities and AUD 265.2 million cash.

• Net tangible assets per share increased to AUD 1.29 from AUD 1.18 year-over-year.

Outlook and guidance

• FY 2025 revenue expected between AUD 3.4-3.6 billion and EBITA between AUD 325-345 million, with stronger second-half performance anticipated.

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

• Leverage targeted at 0.6-0.7x by June 2025.

• Growth anticipated in 2H25 from margin increases in Contract Mining and higher utilisation in Drilling Services.

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