Perenti (PRN) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 results with revenue of AUD 3.34 billion, EBITDA of AUD 645 million, EBITA of AUD 314 million, and NPATA of AUD 166 million, driven by core contract mining, margin growth, and the DDH1 acquisition.

• Free cash flow reached AUD 184 million, exceeding forecasts and up AUD 67.2 million from FY23, supporting net debt reduction and a leverage ratio of 0.7x.

• Declared a final dividend of AUD 0.04 per share, totaling AUD 0.06 for the year, and completed AUD 30 million in share buybacks.

• Updated dividend policy targets a payout of 30%-40% of underlying NPATA.

• Integration of DDH1 completed successfully, with synergies realized and Drilling Services now among the largest globally.

Financial highlights

• Revenue increased to AUD 3.34 billion, EBITDA to AUD 645 million, EBITA to AUD 314 million, and NPATA to AUD 166 million, all record highs.

• EBIT margin improved to 9.4%, up from 9.2% in FY 2023; EBITDA margin at 19.3%.

• Free cash flow of AUD 184 million, with cash flow conversion from EBITDA at 98%.

• Interest expense rose to AUD 69 million due to higher rates and DDH1 acquisition-related debt.

• Statutory profit included a AUD 25.4 million non-cash gain from DDH1 acquisition and AUD 10.2 million in one-off transaction costs.

Outlook and guidance

• FY 2025 revenue forecasted at AUD 3.4–3.6 billion, EBITA at AUD 325–345 million, and free cash flow above AUD 150 million.

• Leverage expected to further reduce to 0.6x–0.7x.

• CapEx guidance for FY 2025 is approximately AUD 330 million, including deferred payments from FY 2024.

• Free cash flow expected to be weighted to the second half of FY 2025.

• Focus on safe service delivery, project wins/extensions, disciplined capital allocation, and margin optimization.