• Delivering higher quality of earnings, substantial increase in WIH and diversification into growing markets
• Exceptional cashflow generation and significant WIH expansion
• Step-change in Utility performance with 130 bps EBITDA margin improvement
• Strong platform for future growth with major expansion of the Group's addressable market

Service Stream Ltd has reported its FY26 half year results, highlighting key achievements including delivering higher quality of earnings, a substantial increase in Work in Hand (WIH), and diversification into growing markets. The Group achieved a 2.3% increase in EBITDA from Operations to $75.3m, a 55% increase in WIH to $9.2bn, and a 130 basis point improvement in Utility EBITDA margin to 5.5%. The strategic expansion into the Defence sector was also a key highlight, with the successful transition to a 6-year (plus 2x1-3 year options) $1.6bn Property & Asset Services agreement. The Group's financial performance was underpinned by exceptional cashflow generation, with Operating Cashflow to EBITDA conversion of 148.4%. Additionally, the Group's diversification strategy has supported incremental increases in works secured across water, industrial, power, and road sectors, broadening its customer base. Looking ahead, the Group is confident of delivering earnings growth in FY26, supported by its H1 performance, sustained improvement in Utility margins, contributions from new mobilisations, and ongoing optimisation across existing operations.

The Group is forecasted to return to a traditional 2nd half bias in FY26, driven by the mobilisation and scaling of new operations. The Group is confident of delivering earnings growth in FY26, supported by its H1 performance, sustained improvement in Utility margins, contributions from new mobilisations, and ongoing optimisation across existing operations.

The Group continues to see positive market fundamentals supporting ongoing growth across its expanded addressable market, with strong levels of investment associated with the upgrade and maintenance of critical infrastructure. The Group's enhanced service offerings and expanded total addressable market are expected to support step-change in growth opportunities, with positive exposure to attractive Tier 1 industrial client base across growing market sectors.