Perenti Posts $3.49 Billion Revenue and $333 Million EBIT(A) in FY25
Perenti Limited has reported record-breaking financial results for FY25, with revenue surpassing $3.49 billion and a 21% increase in dividends. The company also provided optimistic guidance for FY26, underpinned by strong operational performance and a refreshed growth strategy.
- Record FY25 revenue of $3.49 billion and underlying EBIT(A) of $333 million
- Underlying NPAT(A) rose 8% to $178 million; statutory NPAT up 29%
- Free cash flow hit a record $286 million, including one-off Botswana project sale
- Final dividend declared at 4.25 cents per share, total FY25 dividends up 21%
- FY26 guidance targets revenue between $3.45 billion and $3.65 billion
Record-Breaking Financial Performance
Perenti Limited (ASX – PRN) has once again raised the bar with its FY25 financial results, posting record revenue of $3.49 billion, surpassing last year’s milestone. Underlying EBIT(A) climbed 6% to $333 million, reflecting improved operational efficiency across its mining services portfolio. The company’s underlying net profit after tax (NPAT) also rose 8% to $178 million, while statutory NPAT surged 29% to $138 million, underscoring strong bottom-line growth.
Free cash flow reached an unprecedented $286 million, bolstered by a one-off $92 million inflow from the sale of equipment and inventory following the conclusion of an underground mining project in Botswana. Even after adjusting for this, the normalised free cash flow of $195 million remains a record, highlighting Perenti’s robust cash generation capabilities.
Capital Management and Dividend Growth
Reflecting confidence in its financial strength, Perenti declared a final dividend of 4.25 cents per share, bringing total dividends for FY25 to 7.25 cents per share, a 21% increase from FY24. The company also continued its capital management discipline by buying back and cancelling $25.1 million worth of shares, while reducing net debt by 35% to $305 million and lowering leverage to 0.5 times EBITDA.
Notably, the company redeemed the remaining balance of its 2025 US144A notes post-year-end, further strengthening its balance sheet and reducing financial risk.
Safety, Sustainability, and Strategic Renewal
Beyond financials, Perenti emphasized ongoing improvements in safety, reporting zero fatalities in FY25 and enhancing critical risk management through leadership training and technology innovations such as automated rod handling and area denial systems. Sustainability efforts advanced with trials of lower-emission technologies including diesel hybrids, hydrogen systems, and solar-powered infrastructure, aligning with the company’s net zero commitments.
As FY25 marks the conclusion of its previous strategy, Perenti unveiled a refreshed evergreen strategy focused on annual growth targets and capital returns without a fixed end date. This approach aims to sustain consistent cash flows through economic cycles by managing a diversified portfolio of global mining service businesses.
Outlook and Market Positioning
Looking ahead, Perenti’s FY26 guidance projects revenue between $3.45 billion and $3.65 billion, EBIT(A) of $335 million to $355 million, net capital expenditure around $340 million, and free cash flow exceeding $160 million. The company’s current work in hand stands at $6.5 billion, supported by a substantial $17.4 billion pipeline of potential contracts, positioning it well for sustained growth.
CEO Mark Norwell highlighted the resilience built into Perenti’s business model, driven by disciplined contracting and operational consistency, which has enabled the company to navigate commodity price fluctuations and market cycles effectively.
Bottom Line?
Perenti’s record FY25 results and strategic refresh set the stage for steady growth, but investors will watch closely how the company balances expansion with ongoing safety and sustainability commitments.
Questions in the middle?
- How will Perenti’s new evergreen strategy translate into tangible growth and returns over the next few years?
- What risks remain in the contract pipeline, and how might commodity price volatility impact future earnings?
- To what extent will sustainability initiatives affect operational costs and competitive positioning?
