• 4.7% increase in statutory NPAT to $75.5 million
• 37.1% increase in pro forma EBITA to $204.4 million
• 70.0% uplift in pro forma NPATA

Downer EDI Limited (Downer) has released its financial results for the six months to 31 December 2024 (1H25), delivering earnings improvement across all segments. The result demonstrates Downer's turnaround is on track, with a 4.7% increase in statutory NPAT to $75.5 million, a 37.1% increase in pro forma EBITA to $204.4 million, and a 70.0% uplift in pro forma NPATA. The transformation program has now delivered $180 million in cumulative annualised gross cost out, exceeding the company's $175 million target. The Transport, Energy & Utilities, and Facilities segments all reported strong EBITA growth. Revenue was impacted by Downer's focus on improved revenue quality, enhanced risk guardrails, and exiting underperforming businesses, as well as ongoing market softness. Work-in-hand remains strong at $37.4 billion, reflecting the company's selective tendering approach. The balance sheet was further strengthened, with net debt to EBITDA reducing to 1.3x. Downer continues to progress its portfolio simplification, including the sale of its New Zealand Catering business and a 29.9% interest in the Laundries business.

For FY25, Downer is targeting underlying NPATA of between $265 million to $280 million, assuming no material change in economic conditions or market demand, and no material weather disruptions.

Downer is continuing to focus on building a high-quality order book with adherence to enhanced risk guardrails and operating disciplines, and is targeting ongoing improvement in EBITA margin performance across each of its segments. Market conditions are expected to remain varied, particularly lower Australian transport agency spend and softer economic conditions in New Zealand.