How Did GR Engineering Achieve 13% Revenue Growth and a Higher Dividend in FY25?
GR Engineering Services Limited reported a robust FY25 with revenue climbing to $479 million and EBITDA surging to $57.2 million, supported by successful project completions and an expanded contract pipeline. The company declared a higher fully franked dividend and maintains a strong cash position as it looks ahead to FY26.
- FY25 revenue increased 13% to $479 million
- EBITDA surged to $57.2 million from $50.9 million in FY24
- Final fully franked dividend raised to 12 cents per share
- Strong contracted pipeline with major clients including Vault Minerals and Santos
- Robust cash balance of $71 million with negligible debt
Solid Financial Performance
GR Engineering Services Limited has reported a strong financial year for FY25, with revenue rising 13% to $479 million, up from $424.1 million in FY24. More notably, EBITDA jumped to $57.2 million, a significant increase from $50.9 million the previous year, reflecting solid operational execution across its business segments.
The company’s ability to deliver multiple major projects on time and within budget, including the Mungari Future Growth Project and Kathleen Valley Lithium Backfill Project, underpinned this performance. These successes have reinforced GR Engineering’s reputation in the mining and mineral processing sectors.
Expanding Contracted Work and Diverse Commodity Exposure
GR Engineering’s contracted pipeline has been bolstered by new awards from prominent clients such as Vault Minerals, AIC Mines, Bellevue Gold, Santos, Eni, Glencore Technology, and HudBay Minerals. This diversification across commodities, including gold, nickel, copper, lithium, and rare earths, positions the company well to navigate sector cycles.
The company’s wholly owned subsidiary, GR Production Services, also contributed to the improved results by increasing revenue and earnings visibility through contract extensions in the energy sector. Meanwhile, its process controls businesses, Mipac and Paradigm, are poised for growth despite some project deferrals into FY26.
Strong Balance Sheet and Shareholder Returns
GR Engineering ended FY25 with a robust cash position of $71 million and negligible external debt, providing financial flexibility for ongoing and future projects. Reflecting confidence in the company’s outlook, the Board declared a fully franked final dividend of 12 cents per share, up from 10 cents in FY24, bringing total dividends for the year to 22 cents per share.
The Dividend Reinvestment Plan (DRP) remains in place for the final dividend, offering shareholders a 2.5% discount on reinvested shares, which may support shareholder engagement and capital retention within the company.
Commitment to Safety and ESG
Safety remains a core focus, with the Group recording a Total Reportable Injury Frequency Rate (TRIFR) of 4.74 for FY25 and maintaining a target of zero injuries. GR Engineering also continues to demonstrate strong Environmental, Social, and Governance (ESG) commitments, partnering with community organisations and embedding sustainability principles into its operations.
Looking Ahead
With a solid order book and a healthy pipeline of near-term work, GR Engineering is well positioned for FY26. The company plans to provide formal guidance at its Annual General Meeting in November 2025, once there is greater clarity on project timings. While some subsidiaries experienced temporary project suspensions and deferrals, the overall outlook remains positive.
Bottom Line?
GR Engineering’s FY25 momentum sets a strong foundation, but investors will watch closely for FY26 project execution and contract timing.
Questions in the middle?
- How will project deferrals in subsidiaries impact FY26 earnings?
- What is the expected uptake and impact of the Dividend Reinvestment Plan?
- How will GR Engineering navigate potential commodity price volatility in its diverse project portfolio?
