Australian industrial contractor Duratec Limited (ASX: DUR) reported flat revenue of $570.3 million for the fiscal year ended June 30, 2026, while normalized EBITDA rose 10.5% to $58.5 million. The company’s EBITDA margin expanded to a record 10.3%, up from 9.2% in the prior year, as gross margins improved by 190 basis points to 20.5%. Net profit after tax increased 4.1% to $23.8 million, with earnings per share rising to 9.25 cents from 9.10 cents.
The Perth-based contractor attributed the margin expansion to disciplined project selection despite a 1% decline in revenue compared with FY25. Gross profit grew 9.9% to $116.9 million, supported by a 24.1% increase in building and facade revenue to a record $138.8 million, with margins reaching 19.9%. Energy revenue rose 11% to $91.6 million, while defence revenue fell 13% to $157.8 million due to project timing. Mining and industrial revenue declined 16.3% to $114.3 million.
Duratec’s order book surged 67% to $650.8 million, with 70% to 80% of the backlog expected to convert into revenue during FY27. The company’s tender pipeline stands at $1.3 billion, with an additional $4.8 billion in potential projects under evaluation. Management highlighted 13 early contractor involvement projects with potential revenue exceeding $280 million, alongside recurring revenue of $185 million, representing 32.5% of total revenue.
Capital expenditure totaled $12.1 million, while $14.4 million was deployed for acquisitions, including EIG, Pacific Welding Australia, RGK Resources, and Hunter Coatings. New platforms DXP Energy Solutions and Atec Facades were established during the year. The company maintained its fully franked dividend at 4.25 cents per share, reflecting a payout ratio of approximately 46%. Cash flow conversion remained strong at 74% of EBITDA, with operating cash flow before interest and tax at $37.3 million.
Net assets increased 26.2% to $93.8 million, supported by a 20.2% rise in total assets to $302.1 million. Total funding facilities amounted to $343.5 million, with 64% undrawn. The company ended the fiscal year with a cash balance of $78.8 million, down from $84.0 million at the start of FY26. Workforce headcount grew to 1,580 employees, and the company reported zero lost-time injuries for the year.
