Rising Dividends and Project Load: Can GR Engineering Sustain Momentum?
GR Engineering Services Limited reported a solid FY25 with revenue and earnings growth, increased dividends, and a confident outlook for FY26 driven by a robust project pipeline and strategic opportunities.
- FY25 revenue rose to $479 million with EBITDA up to $57.2 million
- Final dividend increased to 12 cents per share, totaling 22 cents fully franked
- Strong balance sheet with net cash of $70.9 million and zero borrowings
- Ongoing major projects and expanding contract pipeline across mining and energy sectors
- Mipac and Paradigm forecast revenue and EBITDA growth in FY26
Robust Financial Performance in FY25
GR Engineering Services Limited (ASX, GNG) has delivered a commendable financial performance for the fiscal year ended June 30, 2025. The company reported revenue of $479 million, up from $424.1 million in FY24, alongside an EBITDA increase to $57.2 million from $50.9 million. This growth reflects the successful delivery of multiple complex projects across its mining engineering and production services divisions.
Key projects completed during the year include the Mungari Future Growth Project, Kathleen Valley Lithium Backfill Project, and the Woodlawn Restart Project. The company also wrapped up transitional works for BHP’s West Musgrave Project, underscoring its capability in managing large-scale, high-profile contracts.
Dividend Increase Signals Confidence
In a move that will please shareholders, the Board resolved to increase the final dividend to 12 cents per share, bringing total dividends for FY25 to 22 cents fully franked, up from 19 cents the previous year. This represents a healthy dividend yield of approximately 5.5% based on the share price as of mid-November 2025, highlighting the company’s strong cash flow and commitment to returning value to investors.
Strong Balance Sheet and Growing Pipeline
GR Engineering maintains a robust balance sheet with a net cash position of $70.9 million and no borrowings as of June 30, 2025. The company also holds significant undrawn bank guarantee and bonding facilities totaling $95 million, providing ample financial flexibility to support ongoing and future projects.
The order book remains solid with major ongoing projects such as the King of the Hills Operations upgrades, Eloise Copper Expansion, and Kainantu Gold Project. GR Production Services has secured contract extensions with key clients like Santos, enhancing revenue visibility. Meanwhile, Mipac and Paradigm continue to deliver advanced control systems and digital solutions for global mining and energy giants, with expectations of further growth in FY26.
Outlook, Growth and Strategic Opportunities
Looking ahead, GR Engineering forecasts FY26 revenue between $500 million and $520 million, reflecting confidence in its expanding project pipeline and contract renewals. The company is actively engaged in numerous front-end engineering design studies and early contractor involvement opportunities across diverse commodities and geographies.
Additionally, GR Engineering is exploring strategic growth avenues that could enhance scale, diversify its portfolio, and deepen technical expertise. This proactive approach positions the company well to capitalize on evolving market demands and sustain its upward trajectory.
Bottom Line?
With a strong FY25 behind it and a promising pipeline ahead, GR Engineering is poised for continued growth but must navigate competitive pressures and execution risks.
Questions in the middle?
- How will GR Engineering’s strategic growth initiatives impact its market position and financials?
- What are the risks associated with the company’s heavy project pipeline and contract renewals?
- How will global commodity price fluctuations influence GR Engineering’s project opportunities and margins?
