Ventia Services Group Limited reported a 23.6% increase in profit after tax for FY25 to $272.2 million, alongside record contract wins and a strong sustainability agenda. The company declared a 12.54 cents per share final dividend, underscoring its commitment to shareholder returns and operational excellence.
- FY25 revenue modestly up 0.6% to $6.14 billion
- Profit after tax rises 23.6% to $272.2 million
- Record work in hand of $22.1 billion with $8.2 billion won in FY25
- Final dividend declared at 12.54 cents per share, 90% franked
- 22.4% reduction in Scope 1 and 2 emissions since 2021 baseline
Strong Financial Performance Amid Strategic Growth
Ventia Services Group Limited (ASX: VNT) has delivered a robust financial performance for the year ended 31 December 2025, with total revenue reaching $6.14 billion, a slight increase of 0.6% over the previous year. More notably, the company’s profit after tax surged by 23.6% to $272.2 million, reflecting disciplined margin management and operational efficiencies across its diversified portfolio.
The company’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 6.6% to $532.1 million, with an improved margin of 8.7%. This performance was underpinned by strategic contract wins and a focus on higher-margin work, particularly within Infrastructure Services and Telecommunications sectors.
Record Contract Wins and Work in Hand Signal Growth Momentum
Ventia’s work in hand; a key indicator of future revenue visibility; hit a record $22.1 billion, up 14.4% year-on-year. The company secured $8.2 billion in new contracts during FY25, including significant agreements with NBN Co, the Australian Defence Force, and Transgrid. These wins span Ventia’s core sectors: Defence and Social Infrastructure, Infrastructure Services, Telecommunications, and Transport.
Noteworthy contract awards include the $2.7 billion Defence Base Services Transformation packages and a $935 million Defence Clothing Services contract, both commencing in 2026. In Telecommunications, Ventia secured a $2.1 billion five-year Field Module contract with NBN Co, alongside a $1.1 billion Fibre to the Node upgrade program. These contracts reinforce Ventia’s position as a trusted partner in essential infrastructure services across Australia and New Zealand.
Dividend and Capital Management Reflect Shareholder Focus
The Board declared a final dividend of 12.54 cents per share, 90% franked, bringing the total dividend for FY25 to 23.25 cents per share. This represents a payout ratio of 75% of underlying net profit after tax excluding amortisation (NPATA), consistent with Ventia’s capital allocation framework prioritising financial strength, growth investment, and shareholder returns.
In addition, Ventia completed an on-market buyback program, returning $137.6 million to shareholders in 2025, with a further $100 million planned for 2026. This buyback program underscores the company’s commitment to efficient capital management and enhancing shareholder value.
Advancing Sustainability and Innovation
Ventia made significant strides in sustainability, achieving a 22.4% reduction in Scope 1 and 2 greenhouse gas emissions since its 2021 baseline. The company’s emissions intensity also improved, supported by initiatives such as fleet electrification, with 13% of its light vehicle fleet now electric or hybrid. However, Scope 3 emissions; indirect emissions from the supply chain; have increased, highlighting ongoing challenges in decarbonising the broader value chain.
Innovation remains a strategic priority, with Ventia advancing its digital transformation and artificial intelligence (AI) capabilities. The launch of VenSpark, an enterprise-wide ideation platform, has empowered over 6,000 users to contribute ideas, with more than 300 innovations submitted in FY25. AI-driven solutions like PicSure are already delivering operational efficiencies and quality improvements.
Safety and Leadership Updates
Safety performance improved with a 15% reduction in the Total Recordable Injury Frequency Rate (TRIFR) to 2.81, despite the tragic loss of a colleague at Port Kembla late in the year. The Board exercised discretion to reduce executive short-term incentives in recognition of this incident, reflecting the company’s commitment to safety as a core value.
Leadership changes included key appointments to the Executive Leadership Team, with Mark Ralston leading Defence and Social Infrastructure, Sarah Palmer heading Telecommunications, Derek Osborn overseeing Innovation and Transformation, and Damien Pedreschi taking charge of Transport. These appointments aim to support Ventia’s growth ambitions and innovation agenda.
Outlook
Looking ahead, Ventia is well-positioned to capture growth in an addressable market forecast to exceed $100 billion by FY28. The company expects underlying NPATA growth of 7-10% in 2026, excluding one-off impacts from the Toowoomba Second Range Crossing novation in 2025. With a strong contract pipeline, disciplined capital management, and a clear sustainability roadmap, Ventia aims to continue delivering consistent financial returns and expanding its footprint in essential infrastructure services.
Bottom Line?
Ventia’s FY25 results set a solid foundation for growth, but investors will watch closely for progress on Scope 3 emissions and the outcome of ongoing legal and safety investigations.
Questions in the middle?
- How will the outcome of the ACCC proceedings impact Ventia’s reputation and future contracts?
- What specific strategies will Ventia deploy to address the rising Scope 3 emissions in its supply chain?
- How might the Port Kembla fatality investigation influence future safety policies and executive remuneration?