• Revenue $104.8 million, down 3.3%
• EBIT $4.6 million, up 43.9%
• Net profit before tax $3.5 million, up 72.8%

Engenco Limited (ASX:EGN), the engineering services group specialising in the transportation industry, today announced a net profit before tax of $3.5 million (H1 FY24: $2.0 million). The result reflects stronger margins and disciplined cost management. Earnings before interest and tax (EBIT) were $4.6 million, up from $3.2 million. Revenue fell slightly to $104.8 million from $108.3 million. Whilst revenue in Gemco Rail increased, measures were taken to exit marginal and unprofitable lines elsewhere across the portfolio. Net operating cash flow was $9.9 million, up from $3.9 million (excluding proceeds from government grants). Net tangible assets at 31 December 2024 were 27 cents per share (H1 FY24: 26 cents per share). Recognising improvement across the Group and with expectations of stronger performance in the second half, the directors have declared an interim dividend of 0.5 cents per share unfranked (H1 FY24 no dividend paid), payable on 28 March 2025 to shareholders on the register at 6 March 2025.

The Group expects the second half of FY25 to be materially stronger than the first half, delivering a significantly improved outcome for the full year compared to FY24. Drivetrain expects increased workshop activity in the second half, Convair adjustments are expected to improve outcomes, and Hedemora is expected to perform better, subject to timing of receipts from customers. The Gemco business is well positioned to accelerate growth, with additional freight wagon repair and maintenance work on the East Coast and wagon manufacture projects continuing from Forrestfield.

Engenco remains committed to leveraging its unique product and service offering, supported by its highly skilled people, to deliver stronger returns for shareholders. The Group is working hard to add value for customers, innovate to build strong demand, and optimise its portfolio and cost management to improve margins. Consistent demand is being experienced across key industries including transport, mining, and defence.