Duratec Faces FY25 Revenue Hit as Defence and Mining Awards Stall

Guidance Revision Reflects External Challenges

Duratec Limited, a prominent Australian engineering and construction contractor, has revised its financial guidance for the 2025 fiscal year, citing delays in project awards and unseasonal weather disruptions. The company now expects revenue between $570 million and $585 million, down from the previous range of $600 million to $640 million. Correspondingly, EBITDA guidance has been adjusted to $50 million to $53 million, with the upper end of this range aligning with the lower end of prior expectations.

This revision follows a slow start to the calendar year, particularly impacting the Defence and Mining sectors, where several high-probability projects faced delays in awarding. Despite these setbacks, Duratec reports that May and June are showing strong operational performance, providing a positive outlook for the next fiscal year.

Sector Performance and Strategic Diversification

While Defence and Mining revenues have been softer than anticipated, Duratec highlights robust activity in Energy, Building & Facade, and DDR sectors. The Energy division, buoyed by ongoing expansions in the Woodside Power & Fabrication (WPF) business, continues to drive growth. Building & Facade benefits from repeat business and long-term client relationships, with a focus on Early Contractor Involvement (ECI) contracts that leverage Duratec’s in-house design and digitisation capabilities.

DDR Australia, a joint venture partly owned by Duratec, is on track for a record year in both revenue and profitability, supported by a strong and diverse tender pipeline. This strategic diversification across sectors is a key element of Duratec’s resilience amid market fluctuations.

Robust Pipeline and Tender Activity

Duratec’s order book stands at $400 million, excluding annuity-style revenues, with tenders at an all-time high of $1.7 billion and a broader pipeline of $4 billion in tendered and identified opportunities. The company’s Managing Director, Chris Oates, emphasised the strength of the business model and team, noting that structural shifts in client procurement, particularly in Defence and Energy, are extending decision cycles but also opening doors for more strategic, long-term engagements.

Notably, the Defence sector’s delays are expected to resolve with project awards anticipated in the first half of FY26, including critical infrastructure projects at HMAS Stirling progressing well under Early Contractor Involvement contracts. Similarly, the Mining sector remains stable, with ongoing maintenance contracts and framework agreements supporting steady revenue streams.

Looking Ahead

Despite the short-term headwinds, Duratec’s diversified portfolio and strong tender pipeline provide a solid foundation for recovery and growth in FY26. The company’s focus on strategic partnerships, long-term contracts, and leveraging technological capabilities positions it well to navigate industry challenges and capitalise on emerging opportunities.