A link to the Duratec results call and Q and A here.

https://openbriefing.com/OB/Duratec-Limited/2025/2/20/Duratec-1H-FY25-Results-Webinar/5806.aspx

On the downside revenue was down 2% YOY however they did a good job managing costs etc, so still recorded a 6% lift in NPAT and a 12% increase in normalised EBITDA.

They also lifted the dividend by 15% YOY, plus the order book was up $5 million from the AGM and the tenders and pipeline buckets were up a couple of hundred million. They reconfirmed current full year guidance of $600 million + in revenue and $52 million plus in EBITDA.

So, it's not as strong a result as the last few years however still good numbers overall in my view, given the current multiple is around 20. The market seems fairly neutral on it so far today, given the share price has had a good run over the past few months.

Interestingly they did lift their debt facilities by $120 million or 70%, which they said was to give them plenty of room to convert more of the tenders plus any really compelling acquisition opportunities that come along. On that note the joint venture in DDR from 2018 and the recent acquisition of Wilsons Pipework in 2023 both had excellent halves, up more than 100% on the previous year.

Mostly business as usual and happy to let them keep compounding away from here hopefully...

Great new video here showing more on the MEnD Division and why this is a moat for Duratec. This seems to be one of the key reasons Duratec has been so profitable and has had no serious losses on projects over the years.

https://www.youtube.com/watch?app=desktop&v=heJcULrrCgc

Good presentation and brief Q and A with CEO Phil Harcourt this week here - https://www.youtube.com/watch?v=FfltJKQyCdY

Looking forward to Strawman securing a session with them soon, so we can dig in deeper but without the tech glitches at the start!

Good news day for Duratec. Very nice trading update as management continues to under promise and over deliver.

In addition the significant increase in Defence spending announced by the government this week, should be a tailwind for them. The new equipment will need to be stored and serviced etc in new or upgraded buildings and given that the Defence department is currently 40% of their mix, you'd expect this will be helpful over time. Not sure if us ramping up our weaponry is great for humanity but probably good for Duratec!

Disclosure: I own DUR in both personal and Strawman portfolios