Duratec Limited posted a 4.1% year-over-year increase in net profit after tax to AUD 23.8 million for the six months ended December 31, 2026, as normalized EBITDA rose 10.5% to AUD 58.5 million. Revenue remained broadly flat at AUD 570.3 million, below initial expectations due to project timing delays.
Gross profit increased to AUD 116.9 million, lifting the gross margin to 20.5% from 18.6% in the prior comparable period. Operating cash flow before interest and tax totaled AUD 37.3 million, representing a 74% cash conversion rate. The company ended the half-year with AUD 78.8 million in cash and a total funding facility of AUD 343.5 million, of which 64% remained undrawn.
The order book surged 66.9% to a record AUD 650.8 million, with management guiding for 70% to 80% conversion in the 2027 financial year. This implies potential revenue of AUD 455 million to AUD 520 million from existing contracts alone. Master services agreements contributed 32.5% of FY 2026 revenue, providing additional visibility beyond the order book. The broader project pipeline reached AUD 4.8 billion, while the tender pipeline stood at AUD 1.3 billion.
Sector performance showed mixed but generally positive trends. Defense revenue rose to AUD 158 million, supported by the AUD 300 million HMAS Stirling Diamantina Wharf upgrade. Mining and industrial revenue increased to AUD 114.3 million, while building and facade services reported a 24.1% year-over-year revenue increase to AUD 138.8 million. Energy segment revenue grew 11% to AUD 91.6 million, including a AUD 45 million contract with Lihir Gold in Papua New Guinea.
Capital expenditure totaled AUD 26.5 million for the half-year, including AUD 12.1 million in plant equipment and AUD 14.4 million in business acquisitions. The company declared a fully franked final dividend of AUD 0.025 per share, bringing the full-year payout to AUD 0.0425 per share, with total cash dividends paid amounting to AUD 9.4 million.
Duratec's share price closed at AUD 2.12, down 0.93% from the previous session, with a 52-week range of AUD 1.50 to AUD 2.96. The company's valuation metrics stood at a P/E ratio of 24.79 and a price-to-book multiple of 6.73.
