• Revenue slightly lower due to project timing, but record revenue in Building & Facade and Emerging sectors
• Gross profit and margins improved, reflecting benefits of self-perform and Early Contractor Involvement works
• Normalised EBITDA increased 2%, driven by project profitability and equity-accounted investments

Duratec Limited reported a 4.9% decrease in revenue to $273.3m for 1H FY26, primarily due to project timing and delivery phasing in the Defence, Mining & Industrial and Energy sectors. However, the company achieved record revenue in the Building & Facade and Emerging sectors. Gross profit was the highest to date for the period, with strong gross profit margins across all sectors, reflecting the benefits of self-perform and Early Contractor Involvement works. Overheads increased due to strategic investments in acquisitions, enhancements to business systems and initiatives to support future growth. Normalised EBITDA improved by 2%, driven by the underlying project profitability and solid contributions from equity-accounted investments, partially offset by higher overheads. NPAT increased by 3.5% versus the prior corresponding period, reflecting period profits and a lower effective tax rate. The company maintained its interim dividend at 1.75 cents per share, reflecting a balanced approach to shareholder returns and growth investment. The balance sheet continued to strengthen, with net assets increasing by 14% to $84.8m.

Duratec expects stronger second half growth in the Energy sector due to recent project awards and pipeline, and continued growth in the Emerging sectors, including Marine, Transport Infrastructure, and Water Infrastructure. The company also anticipates increased contributions from the Defence sector as the DEJV works at HMAS Stirling commence.

Duratec is focused on expanding its collaborations with major miners, strategic expansion into the NSW and Queensland Mining sectors, and leveraging its new subsidiaries to further diversify its client and sector base. The company also sees opportunities for growth in the Energy sector through long-term maintenance service agreements and geographical expansion, as well as increasing Marine, Water, and high-security Federal and State projects in the Emerging sectors.