• Record revenue result with outstanding performance from Energy and Emerging sectors
• Improved average gross margin at 18.6% due to higher margin projects
• Normalised EBITDA margins improved to 9.2% due to project profitability and DDR Australia contribution

Duratec Limited delivered a strong financial performance in FY25, with record revenue of $573.0m, up 13.1% on FY24. The company's EBITDA was $53.0m, down 11.3% on FY24, while NPAT increased 6.5% to $22.8m. Earnings per share climbed to 9.10 cents, and the total dividend increased to 4.25 cents per share. The company's balance sheet continued to strengthen, with net assets increasing by 25.7% to $74.3m. Duratec saw improved average gross margins at 18.6% due to a greater proportion of higher margin projects, including self-perform works and Early Contractor Involvement (ECI) contracts. Normalised EBITDA margins increased to 9.2% due to improved project profitability and the contribution from the DDR Australia Group, though NPAT margins increased slightly to 4% due to increased overhead costs from strategic investments. The company's cash conversion remained strong at 98%, and it invested $14m in plant and equipment and $3.4m in business acquisitions. Duratec's safety and sustainability performance saw mixed results, with an increase in TRIFR and LTIFR, though the company progressed its Reconciliation Action Plan and continued community-focused engagements. The company's key business segments performed well, with the Defence, Mining & Industrial, and Building & Facade divisions all contributing to the overall result. The Energy and Emerging sectors, which include Marine, Transport Infrastructure, and Water Infrastructure, saw particularly strong growth, with revenue in the Emerging sectors increasing 175.5% to $60.6m. Duratec's outlook remains positive, with a strong order book, pipeline of tenders, and continued focus on MSA and annuity-style contracts, which now represent 31% of revenue. The company is also well-positioned for future growth, with increased banking facilities and potential strategic acquisitions.

Duratec expects continued strong performance in FY26, with growth in MSA and annuity-style contracts, conversion of several ECI Building and Facades projects, and a stronger work-in-hand position in the Defence space. The company also sees strong tailwinds in the Mining, Energy, and Building Maintenance sectors, as well as potential expansion into the Pacific region with existing clients.

In the medium to long-term, Duratec sees continued growth opportunities through its ECI contracting model, as well as significant infrastructure upgrade spending planned at HMAS Stirling Garden Island and Henderson in Western Australia. The company is also well-funded for future growth, with increased banking facilities, and is exploring potential strategic acquisitions to further expand its capabilities and market reach.