Highlights

• Statutory NPAT increased 51.2% to AU$225.4 million in FY26.
• Underlying NPATA rose 9.8% to AU$306.7 million, within guidance.
• Work-in-hand expanded 9.7% to AU$38.5 billion, supported by strategic contract wins.

Downer Delivers Strong FY26 Financial Performance

Downer EDI Limited (ASX:DOW) released its FY26 Annual Report on 20 August 2026, reporting improved profitability, stronger margins and continued progress under its business transformation program. The company focused on enhancing earnings quality, improving operational discipline and strengthening its position across essential infrastructure markets in Australia and New Zealand.

During FY26, Downer recorded statutory net profit after tax (NPAT) of AU$225.4 million, representing a 51.2% increase compared with FY25. Underlying NPATA increased 9.8% to AU$306.7 million, while underlying EBITA rose 6.1% to AU$502.9 million, supported by improved project execution, cost management and portfolio simplification initiatives.

Margin Improvement Supports Earnings Quality

The company continued to prioritise higher-quality earnings, with the underlying EBITA margin improving to 5.1% from 4.4% in FY25. Downer highlighted that the stronger margin profile reflected disciplined contract delivery, improved risk management and ongoing efficiency initiatives across its operations.

Although pro forma revenue declined 5.3% to AU$9.8 billion, the company noted that the reduction was largely linked to portfolio changes, foreign exchange impacts and the decision to exit lower-margin businesses and contracts.

Strong Contract Pipeline Enhances Future Visibility

Downer strengthened its future revenue outlook through continued contract wins, lifting work-in-hand by 9.7% to AU$38.5 billion. Key additions included major projects across Defence, Energy & Utilities, Transport and Facilities, supporting long-term earnings visibility.

The company secured AU$12.2 billion of work during FY26, including significant infrastructure and maintenance contracts. The company’s broad-based operations are positioned across industries supported by sustained growth drivers, including the shift towards cleaner energy, rising defence requirements, infrastructure development and demographic expansion.

Balance Sheet and Shareholder Returns Remain Strong

Downer maintained financial flexibility, improving its leverage ratio to 0.8 times net debt to EBITDA, compared with 0.9 times at June 2025. Normalised cash conversion reached 91.1%, exceeding the company’s target of above 90%.

The Board approved a fully franked final dividend payment of AU$0.163 per share, bringing Downer’s total dividend distribution for FY26 to AU$0.292 per share. The company also continued its share buy-back program, supporting shareholder returns alongside its focus on sustainable growth.

Downer enters FY27 with a stronger operational platform, improved margins and a substantial pipeline of secured work, positioning the company to pursue further growth opportunities across Australia and New Zealand.

Note- All data presented is based on information available at the time of writing.

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