Downer EDI has reported stronger profits for the first half of FY26, fueled by momentum in its defence-related projects. The company, which delivers comprehensive services to customers in markets including transport, infrastructure, and defence, saw a significant boost to its bottom line. Downer provides services such as project management, engineering, and maintenance across various sectors.
For the six months ending December 31, Downer’s statutory revenue totalled $4.86 billion, a 6.9 per cent decrease from the $5.2 billion reported a year prior. However, statutory net profit after tax rose by 30 per cent to $98 million. Basic earnings per share increased to 14¢ from 10.3¢, and shareholders will receive a fully franked interim dividend of 12.9¢.
The company’s facilities division benefited from the EMOS contract in anticipation of the Australian defence property and asset services deal, which commenced this month. Ongoing contract wins, renewals, and extensions in the defence sector are strengthening the company’s pipeline. Downer recently secured a $3.05 billion property and asset services contract for 36 defence sites across Queensland, NSW, and the ACT, starting this month for an initial six-year term, with potential extensions extending the contract to 10 years.
Chief executive Peter Tompkins stated that the company’s strategic focus on securing higher-quality contracts and improved contract management is yielding positive results. Looking forward, Downer anticipates slightly lower revenue in FY26 compared to the FY25 pro forma level but expects improvements in earnings and EBITDA margins. The company projects a net profit ranging from $295 million to $315 million.
