How Ventia’s $2B Telstra Win and 12.8% Profit Surge Shape 2025

Strong Financial Performance Amid Market Expansion

Ventia Services Group Limited showcased another year of solid growth in 2024, reporting total revenue of $6.1 billion, up 7.6% from the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 7.3% to $499 million, maintaining a resilient margin of 8.2%. Net profit after tax and amortisation (NPATA) climbed 12.8% to $228 million, reflecting the company’s operational efficiency and market positioning.

Since its 2021 listing, Ventia has steadily expanded, with total revenue increasing 34% and NPATA surging 55%. This growth is underpinned by a diversified portfolio spanning Defence, Infrastructure Services, Telecommunications, and Transport sectors, supported by a workforce exceeding 35,000 across Australia and New Zealand.

Major Contract Wins Cement Market Leadership

Ventia’s strategic contract wins in 2024 underscore its strong market presence. The company secured a landmark $2 billion, five-year contract with Telstra to design, construct, and maintain digital infrastructure, reinforcing a 30-year partnership. Additionally, a $564 million Defence firefighting contract and a $220 million Southeast Queensland Water asset lifecycle services agreement highlight Ventia’s breadth across critical infrastructure sectors.

These contracts contribute to a robust work-in-hand pipeline, which grew 6.7% to $19.4 billion, the highest since listing. The company’s 92% contract renewal rate further demonstrates customer trust and operational excellence.

Innovation and Sustainability Drive Future Growth

Ventia is actively embracing digital transformation and sustainability as pillars of its growth strategy. The launch of VenSpark, an AI-powered innovation platform, aims to harness employee ideas to drive continuous improvement. The company also introduced a Responsible AI framework to ethically integrate AI technologies, including tools that streamline bidding processes.

On sustainability, Ventia’s Climate Transition Action Plan targets a 42% reduction in Scope 1 and 2 emissions by 2030, building on a 21.3% reduction achieved since 2021. The company is transitioning its fleet to electric and hybrid vehicles and increasing renewable energy use. While Scope 3 emissions remain challenging due to supply chain dependencies, Ventia is committed to collaborative improvements.

Governance and Regulatory Update

The Ventia Board addressed ongoing civil proceedings initiated by the Australian Competition and Consumer Commission (ACCC) in December 2024. The company plans to vigorously defend the claims, maintaining confidence in its ethical business practices and governance standards. This regulatory matter remains a key watchpoint for investors.

Meanwhile, Ventia continues to deliver shareholder value through a 12.8% increase in dividends to 19.98 cents per share and an on-market buy-back program of $100 million, more than two-thirds complete.

Outlook

Looking ahead, Ventia reaffirmed its 2025 NPATA growth guidance of 7-10%, supported by a strong contract pipeline, market tailwinds from infrastructure investment, and ongoing innovation. The company’s focus on redefining service excellence, sustainability, and digital capability positions it well to capture expanding opportunities across Australia and New Zealand.