Duratec Posts $573M Revenue and $53M EBITDA, Up 11% on FY24
Duratec Limited reported a record FY25 with revenue climbing to $573 million and EBITDA up 11.3%, driven by strong growth in Energy and Emerging sectors despite softer Defence and Mining results.
- Record FY25 revenue of $573 million, up 3.1%
- EBITDA increased 11.3% to $53 million
- NPAT rose 6.5% to $22.8 million with EPS at 9.10 cents
- Strong cash position of $84 million and 98% cash conversion
- Acquisition of AMD Electrical Pty Ltd expands Energy sector capabilities
Strong Financial Performance Amid Sector Shifts
Duratec Limited has reported a robust financial year for FY25, posting record revenue of $573 million, a 3.1% increase over FY24. The company’s EBITDA surged 11.3% to $53 million, reflecting improved project profitability and strategic investments. Net profit after tax (NPAT) rose 6.5% to $22.8 million, with earnings per share climbing to 9.10 cents, underpinning a fully franked dividend of 4.25 cents per share.
Despite a slight decline in revenue from Defence and Mining & Industrial sectors, Duratec’s growth was fuelled by strong performances in the Energy and Emerging sectors. The Energy segment nearly doubled revenue to $82.5 million, boosted by key contracts including Woodside Energy’s King Bay Supply Base refurbishment and pipeline infrastructure projects for Santos. Meanwhile, Emerging sectors, encompassing Marine and Water Infrastructure, saw a remarkable 175.5% revenue increase to $60.6 million, driven by national expansion and government investment in essential services.
Strategic Acquisitions and Operational Highlights
Duratec’s acquisition of AMD Electrical Pty Ltd, trading as EIG Australia, marks a significant step in expanding its electrical infrastructure and fuels transfer capabilities, complementing its existing portfolio. This move aligns with the company’s strategy to diversify revenue streams and deepen its footprint in high-value sectors.
Operationally, Duratec continued to invest in digital engineering and self-perform capabilities, enhancing efficiency and project delivery. The company relocated to a new 12,000 square meter facility in East Perth and Naval Base, boosting service capacity and innovation. Safety and sustainability remain priorities, with targeted programs addressing musculoskeletal risks and psychological safety frameworks.
Outlook and Growth Pipeline
Looking ahead, Duratec is well positioned with a strengthened balance sheet, net assets up 25.7% to $74.3 million, and increased banking facilities to $294 million. The company’s pipeline includes significant infrastructure upgrades at HMAS Stirling and Henderson, with projected government spending exceeding $28 billion through 2032. Master Services Agreements (MSAs) and annuity-style contracts now represent a growing portion of revenue, offering stable and profitable income streams.
Duratec’s medium to long-term strategy focuses on scaling specialist expertise across Defence, Energy, and Mining sectors, expanding into the Pacific region, and pursuing selective acquisitions. The company’s disciplined cost management and operational efficiency underpin confidence in sustaining growth momentum.
Bottom Line?
Duratec’s FY25 results underscore its strategic pivot towards high-growth sectors and solidify its foundation for sustained expansion amid evolving infrastructure demands.
Questions in the middle?
- How will margin pressures in Mining & Industrial and Building sectors impact future profitability?
- What are the integration plans and expected financial impact of the AMD Electrical acquisition?
- How effectively can Duratec convert its strong pipeline and ECI contracts into long-term revenue?
