• Turnaround on track with more work to realise full potential
• Positive earnings improvement achieved across all segments
• Margin growth driven by focus on revenue quality, enhanced risk guardrails, and cost out benefits

Downer reported a strong 1H25 performance, with pro forma EBITA increasing 37.1% to $204.4 million and pro forma NPATA growing 70% to $127.3 million. The company's turnaround is on track, with more work to realise its full potential. Margin growth was driven by a focus on revenue quality, enhanced risk guardrails, back-to-basics contracting disciplines, exiting underperforming businesses, and cost out benefits. Cash conversion improved to 94%, strengthening the balance sheet and providing greater capital management flexibility. The company has made progress on its transformation, with 75% of the Executive Leadership Team and 26% of the Senior Leadership Team being new or promoted. Downer is continuing to focus on building a high-quality order book, adhering to enhanced risk guardrails and operating disciplines, and 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. 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.

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, adhering to enhanced risk guardrails and operating disciplines, and 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.