Perenti’s Strong FY25 Results Mask Challenges in Safety and Contract Execution
Perenti Limited has delivered record financial results for FY25, driven by strong operational performance and strategic contract wins, including its first underground mining contract in the USA. The company also improved its safety record and advanced key sustainability initiatives.
- Record revenue of $3.49 billion, up 4.4%
- Underlying EBIT(A) increased 6.1% to $333.5 million
- Free cash flow reached $286 million with leverage improved to 0.5x
- Secured over $4 billion in new and extended contracts, including US entry
- Declared final unfranked dividend of 4.25 cents, full year 7.25 cents
Record Financial Performance
Perenti Limited has reported a strong set of financial results for the fiscal year ended 30 June 2025, marking a new high watermark for the diversified mining services group. Revenue rose 4.4% to $3.49 billion, underpinned by improved operational performance across its contract mining and drilling services divisions. Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 6.1% to $333.5 million, reflecting disciplined cost management and economies of scale.
The company’s free cash flow generation was robust at $286 million, enabling further debt reduction and strengthening the balance sheet. Net leverage improved to a conservative 0.5 times underlying EBITDA, providing significant financial flexibility to pursue growth opportunities and return capital to shareholders.
Strategic Contract Wins and US Market Entry
Perenti secured more than $4 billion in new and extended contracts during FY25, reinforcing its global footprint. Notably, Barminco, Perenti’s underground mining division, won its first contract in the United States at Nevada Gold Mines’ Goldrush Project in Nevada. This milestone marks a key step in Perenti’s North American growth strategy, expanding its presence in the world’s largest gold-producing complex.
Additional contract wins across Africa, Australia, and Canada, including at Obuasi (Ghana), Mana (Burkina Faso), Hemlo (Canada), Agnew and Great Fingall (Australia), further diversify Perenti’s project portfolio and provide long-term revenue visibility. The company’s integrated capabilities and focus on safety and productivity continue to underpin its competitive advantage in these markets.
Safety and Sustainability Progress
Safety remains a top priority for Perenti, with FY25 delivering zero fatalities and meaningful improvements in safety culture and critical risk management. The company embedded divisional safety transformation plans, expanded leadership development, and deployed advanced technologies such as the Area Denial System to reduce high-risk exposures in underground operations.
On the sustainability front, Perenti advanced its decarbonisation efforts by trialling hybrid and electric mining equipment, installing solar infrastructure, and partnering with clients on electrification feasibility studies. Gender diversity initiatives saw female representation in senior leadership rise to 20%, with ongoing programs to improve inclusivity and workplace respect globally. Community partnerships were strengthened through targeted social investments and Indigenous engagement, including a new alliance with the Indigenous Desert Alliance in Australia.
Capital Management and Shareholder Returns
Perenti’s strong cash flow enabled the declaration of a final unfranked dividend of 4.25 cents per share, bringing the full-year dividend to 7.25 cents, up from 6.0 cents in FY24. The company also continued its on-market share buyback program, purchasing 19.7 million shares during the year to enhance shareholder value.
In line with its capital management strategy, Perenti fully redeemed its 2025 Senior Unsecured Notes in July 2025, further optimising its debt profile. The company’s credit ratings improved during the year, reflecting enhanced financial strength and market confidence.
Leadership and Outlook
Chair Diane Smith-Gander and Managing Director & CEO Mark Norwell highlighted the disciplined execution of Perenti’s 2025 Strategy, which has delivered consistent growth and positioned the company for future expansion. The leadership team remains focused on operational excellence, safety, and sustainability as core pillars driving long-term value creation.
Looking ahead, Perenti is well positioned to capitalise on a $17.4 billion pipeline of opportunities, with a particular emphasis on expanding its North American footprint and advancing technology-enabled mining solutions. The company’s refreshed strategy, to be unveiled in FY26, aims to build on its strong foundation and unlock new avenues for growth.
Bottom Line?
Perenti’s record FY25 performance and strategic US entry set the stage for sustained growth, but investors will watch closely for execution on its ambitious pipeline and safety commitments.
Questions in the middle?
- How will Perenti’s entry into the US underground mining market impact its competitive positioning and margins?
- What are the key risks and opportunities embedded in Perenti’s refreshed strategy to be announced in FY26?
- How effectively can Perenti balance growth ambitions with its safety and sustainability targets amid evolving industry challenges?
