• Demonstrated resilience despite market variability, delivering bottom line improvement
• Strategic wins growing work-in-hand, positioning the business for medium-term growth
• Continued uplift in performance, underpinned by stronger contract delivery and cash backed period-on-period improvement

Downer Edi Ltd reported strong 1H26 results, demonstrating resilience despite variability in market conditions. The company delivered a 30% increase in statutory NPAT to $98.0m, an 11.2% increase in underlying EBITA to $227.1m, and a 8.9% increase in work-in-hand to $38.2bn. The company's EBITA margin improved by around 90bps to 4.6%, and it is on track to exceed its management target of over 4.5% EBITA margin averaged across FY25 and FY26. The company's diversified portfolio, strategic wins, and focus on disciplined, high-quality revenue have driven this performance. Downer continues to strengthen its market positions, with good momentum in new contract wins, renewals, and extensions across Defence, Power Projects, Water, Energy & Industrial, Housing, and Rail. The company has a robust order book, with around 90% of its work-in-hand being government-related and 90% being services. Downer's strategic divestments and a strong balance sheet provide the capacity to pursue further growth opportunities.

Downer is targeting 4-5% revenue CAGR from FY26 in its Transport segment, 8-9% revenue CAGR from FY26 in its Energy & Utilities segment, and 4-5% revenue CAGR from FY26 in its Facilities segment. The company is also targeting EBITA margins towards 6% in Transport, 7% in Energy & Utilities, and 6.5% in Facilities by FY30.