GR Engineering Posts 13% Revenue Growth, $51M Profit Before Tax in FY25
GR Engineering Services Limited has reported a robust FY25 financial performance with increased revenue, profit, and dividends, supported by a solid order book and ongoing major projects.
- FY25 revenue rises to $479 million, up from $424.1 million
- Profit before tax climbs to $51.1 million with stable EBITDA margin
- Final fully franked dividend increased to 12.0 cents per share
- Strong project pipeline including King of the Hills and Eloise Copper Expansion
- Cash position remains healthy at $71 million with negligible debt
Financial Performance Highlights
GR Engineering Services Limited (ASX, GNG) has delivered a solid set of financial results for the fiscal year ended June 30, 2025. The company reported revenue of $479 million, marking a notable increase from $424.1 million in the previous year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose to $57.2 million, while profit before tax (PBT) reached $51.1 million, both reflecting steady growth and operational efficiency. Despite the higher revenue, the EBITDA margin remained consistent, underscoring disciplined cost management amid expanding business activity.
Dividend and Balance Sheet Strength
In recognition of its strong performance, the Board declared a fully franked final dividend of 12.0 cents per share, lifting total dividends for FY25 to 22.0 cents per share, up from 19.0 cents in FY24. The company also introduced a Dividend Reinvestment Plan (DRP) with a 2.5% discount, encouraging shareholder participation. GR Engineering’s balance sheet remains robust, with a cash balance of $71 million and negligible bank debt, providing financial flexibility to support ongoing and future projects.
Operational Achievements and Project Pipeline
The year saw successful delivery of several major projects, including the Mungari Future Growth Project, Kathleen Valley Lithium Backfill Project, and Woodlawn Restart Project. GR Engineering continues to execute high-profile contracts such as the King of the Hills Operations Stage 1 and 2 upgrades, valued at $155 million, and the $78 million Eloise Copper Expansion Project. The company is also progressing the Kainantu Gold Project in Papua New Guinea, with commissioning underway. These projects, alongside a strong pipeline of 30 studies across diverse commodities, position the Group well for sustained growth.
Subsidiaries Driving Growth
Subsidiaries GR Production Services (GRPS), Mipac, and Paradigm contributed significantly to the Group’s performance. GRPS expanded its footprint in the energy sector through contract extensions with Santos and ongoing operations and maintenance services across Australia’s gas and LNG facilities. Mipac and Paradigm continued to provide advanced control systems and operational technology solutions to major mining and energy clients, despite some project deferrals. Both subsidiaries are expected to drive revenue and earnings growth in FY26.
Outlook and Market Position
GR Engineering’s Managing Director, Tony Patrizi, highlighted the company’s strong order book and medium to long-term project visibility. With a diversified portfolio spanning mineral processing, energy, and process controls, the Group is well-positioned to capitalize on market opportunities. The company plans to provide FY26 guidance at its Annual General Meeting in November, which will offer greater clarity on the timing and scale of upcoming projects. Meanwhile, the Group maintains a firm commitment to safety, targeting a zero-harm workplace environment through its GRESAFE program.
Bottom Line?
With a fortified balance sheet and a growing project pipeline, GR Engineering is set to navigate FY26 with confidence, though investors await November’s guidance for clearer direction.
Questions in the middle?
- How will the timing of key projects impact FY26 revenue and profit?
- What are the risks associated with project deferrals and contract renewals?
- How will the Dividend Reinvestment Plan uptake affect shareholder returns?
