Duratec Delivers Record FY25 Revenue, Eyes Strong FY26 Growth Across Sectors

Record Financial Performance Amid Sector Dynamics

Duratec Limited (ASX – DUR) has unveiled its full-year results for FY25, marking a milestone with record revenue of $573 million, a 3.1% increase over the previous year. The company’s normalised EBITDA rose 11.3% to $53 million, reflecting improved project profitability and contributions from its subsidiaries. Net profit after tax reached $22.8 million, with earnings per share climbing to 9.10 cents. Duratec also declared a fully franked dividend of 4.25 cents per share, underscoring its strong cash flow and shareholder returns.

The company’s cash position strengthened significantly, with $84 million on hand, up $18.8 million from FY24, and expanded debt facilities to $294 million, providing ample capacity to support organic growth and strategic acquisitions.

Sector Highlights – Energy and Emerging Markets Lead Growth

Duratec’s Energy sector was a standout performer, with revenue surging 77% to $82.5 million, driven by key projects for Santos and Woodside Energy, alongside inclusion in APA Group’s National Fabrication Services Panel. The acquisition of AsClear further bolstered capabilities in industrial blasting and hazardous materials remediation, positioning Duratec to capitalize on the $5 billion annual energy maintenance market.

Emerging sectors, encompassing Marine, Transport Infrastructure, and Water Infrastructure, posted an impressive 175% revenue increase to $60.6 million. This growth was fueled by strategic national expansion and opportunities linked to the upcoming 2032 Brisbane Olympics, where asset rejuvenation and remediation demand is expected to rise.

Defence and Mining – Challenges and Opportunities Ahead

The Defence sector experienced a revenue decline to $181.4 million due to timing delays in project awards, particularly within the Estate Works Program. However, gross margins improved to 13%, reflecting disciplined cost management. Duratec secured two Early Contractor Involvement (ECI) Head Contracts at HMAS Stirling, a critical infrastructure upgrade site, and is well positioned to benefit from the $8 billion earmarked for Defence infrastructure in Western Australia.

The Mining & Industrial sector saw a 12.2% revenue decline to $136.6 million, impacted by project timing and the completion of major works like BHP’s Berth C&D project. Yet, the sector is poised for a rebound as asset lifecycle management and maintenance backlogs create new opportunities. Duratec’s focus on Master Services Agreements with major clients such as Rio Tinto and BHP, combined with digital condition assessments, positions it to capture a significant share of the estimated $1.2 billion annual iron ore maintenance market.

Strategic Acquisitions and Innovation Drive Competitive Edge

Duratec’s growth strategy includes targeted acquisitions, such as EIG Australia in Defence and AsClear in Energy, enhancing technical capabilities and expanding geographic reach. The company’s consulting arm, MEnD, continues to lead in digital asset management, integrating AI-driven inspection tools and 3D reality modelling to support predictive maintenance and lifecycle asset management.

WPF Duratec, the group’s fabrication business, delivered exceptional growth with revenue up 74%, supported by strategic acquisitions and key project wins in the energy sector. This expansion complements Duratec’s integrated service offering across fabrication, electrical, and mechanical scopes.

Outlook – Positioned for Growth Across Multiple Fronts

Looking ahead to FY26, Duratec enters the year with a robust $390 million order book and a $4.16 billion pipeline, underpinned by a $1.65 billion tender pipeline. The company anticipates strong growth driven by Defence infrastructure programs under the AUKUS initiative, oil and gas maintenance and decommissioning, mining asset integrity projects, and infrastructure demands linked to the Brisbane Olympics.

With a solid balance sheet, expanding sector presence, and a culture of safety and innovation, Duratec is well placed to capitalize on evolving market opportunities and deliver sustained shareholder value.