FY25 Results Media Release
| Stock | Downer Edi Ltd (DOW.ASX) |
|---|---|
| Release Time | 21 Aug 2025, 8:54 a.m. |
| Price Sensitive | Yes |
Downer Delivers 82% Statutory NPAT and 33% Underlying NPATA Growth, Announces $230M Share Buyback
- Statutory NPAT up 81.6% to $149.1M
- Underlying NPATA up 33% to $279.4M
- Underlying EBITA margin improved to 4.4%, exceeding 4.2% target
Downer EDI Limited (Downer) (ASX:DOW) released its FY25 financial results, delivering strong performance across key metrics. Statutory NPAT increased 81.6% to $149.1 million, while underlying NPATA grew 33% to $279.4 million, at the top end of the FY25 guidance range. Underlying EBITA increased 24.5% to $474.2 million, with the underlying EBITA margin improving to 4.4% from 3.2% in the prior year, exceeding the management target of 4.2%. Downer also achieved cumulative annualised gross cost savings of $213 million, exceeding the upsized target of $200 million. The company's cash conversion remained strong at 97.9%, exceeding the >90% target, and net debt to EBITDA improved to 0.9x from 1.4x. Downer announced an on-market share buyback of up to $230 million, representing around 5% of issued capital, and an increased dividend payout ratio target range of 60% to 70% of NPATA. The company's portfolio simplification program was largely completed, with the divestment of several non-core businesses. Looking ahead, Downer is targeting both underlying earnings and EBITA margin improvement in FY26, with underlying revenue forecast to be flat to slightly lower than FY25 pro forma revenue.
In FY26, Downer is targeting both underlying earnings and EBITA margin improvement, with underlying revenue forecast to be flat to slightly lower than FY25 pro forma revenue of $10.566 billion.
Downer enters FY26 with good momentum, confidence in its market positions, and greater stability in the business following the completion of its portfolio simplification program. In the short term, market conditions are expected to be stable, with Australian Transport Agency spend expected to remain subdued. In the medium term, the outlook for sustainable growth is positive, assisted by New Zealand transport infrastructure programs and favourable sector exposures; energy transition, defence spending, population growth and local industry revitalisation.