PeopleIN improved underlying earnings and reduced leverage in FY26 despite a statutory loss, as Queensland’s infrastructure demand drove a sharp recovery in its core workforce division. The company is now betting that a leaner portfolio, Infrawork’s trans-Tasman labour channel and Brisbane 2032-related work can sustain the upturn.
- Normalised EBITDA rose 1.6% to $19.0 million
- Engineering, Trades and Labour EBITDA increased 74.8%
- Net debt leverage fell to 1.37 times EBITDA
- $24.8 million Infrawork acquisition completed
- Dividends remain paused despite improved cash flow
Underlying earnings recover as statutory loss narrows
PeopleIN Limited (ASX:PPE) finished FY26 with a familiar accounting blemish but a more encouraging operating trend. Revenue from continuing operations fell 4.3% to $788.7 million, yet net revenue increased 1.3% to $101.9 million, normalised EBITDA rose 1.6% to $19.0 million and normalised NPATA climbed 29.9% to $8.7 million.
The statutory loss from continuing operations narrowed to $10.0 million from $16.5 million, while the consolidated result was a $38.9 million loss after a $28.9 million loss from discontinued operations. PeopleIN said second-half net revenue grew 8.5% and second-half normalised EBITDA increased 19%, suggesting the year’s headline numbers conceal a materially stronger exit rate.
Engineering and trades division leads the recovery
The clearest improvement came from Engineering, Trades and Labour, where full-year normalised EBITDA increased 74.8% and second-half EBITDA rose 122.7%. Billed hours increased 15.2% in the second half, while billing rates for the division rose 13% as demand for skilled and semi-skilled workers strengthened, particularly in Queensland.
That performance builds on the Queensland infrastructure earnings rebound, previously reported as a 74.8% increase in the division’s FY26 EBITDA. PeopleIN says more than half of Group revenue is generated in Queensland, with demand linked to mining, construction, infrastructure and early Brisbane 2032 activity. Professional Services also improved late in the year, with permanent placement fees up 37.5% in the second half, while Food and Agriculture remained under pressure from drought, lower livestock levels and weaker activity in parts of meat processing.
Infrawork expands the labour mobility strategy
PeopleIN completed its acquisition of New Zealand workforce solutions provider Infrawork on 1 March for $24.8 million, including $18.8 million in cash and $6.1 million of contingent consideration. The deferred component depends on Infrawork achieving EBITDA targets between NZD $6.0 million and NZD $15.0 million, with total deferred consideration capped at NZD $32.0 million.
Infrawork contributed $19.5 million of revenue and $1.5 million of profit after tax during its four months of ownership. Management said the business was trading ahead of its initial expectations and provided access to skilled candidates from New Zealand and Asia for infrastructure work in both countries. The purchase extends the Infrawork New Zealand acquisition, which was announced alongside steady half-year earnings and a stated focus on Asia-Pacific workforce supply.
Portfolio exits fund debt reduction and buyback
The acquisition was funded after PeopleIN sold its 79.25% interest in Techforce and its Health and Community division, generating $37.1 million in net proceeds. The Health and Community sale was completed on 31 December 2025, following the Health and Community divestment, while Techforce was sold earlier in the financial year.
Net borrowings excluding lease liabilities fell to $29.7 million from $56.1 million, reducing pro forma net debt leverage to 1.37 times normalised EBITDA from 1.65 times. Operating cash flow was positive at $11.2 million, although down from $34.9 million a year earlier. PeopleIN also completed a $6.0 million on-market buyback, repurchasing 8.8 million shares, but the Board continued to withhold dividends to preserve capital for deleveraging and core operations.
FY27 growth case rests on execution rather than guidance
PeopleIN has not issued formal financial guidance, but its priorities are clear: expand infrastructure and construction across Queensland, the Northern Territory, Western Australia and New Zealand; increase skilled-worker mobility across Australia, New Zealand, the Pacific and Asia; grow professional recruitment; expand education staffing; and pursue Brisbane 2032 and GIICA-related relationships.
The investment case therefore turns on whether elevated demand converts into durable margins and cash generation. The company’s own risk disclosures point to scarce labour, regulatory change, drought exposure in Food and Agriculture, and the execution burden attached to its international workforce model. Its first climate report also says its Sustainability Working Group had not yet commenced, while no climate-related targets have been set. FY27’s early evidence will need to show that PeopleIN’s sharper portfolio is not merely smaller, but genuinely more productive.
Bottom Line?
PeopleIN enters FY27 with stronger operating momentum and lower leverage, but the next test is converting Queensland’s infrastructure cycle and Infrawork’s labour pipeline into sustained cash earnings without reopening the balance-sheet trade-off.
Questions in the middle?
- Can Engineering, Trades and Labour maintain its sharp EBITDA recovery as Brisbane 2032 activity accelerates?
- Will Infrawork achieve the EBITDA thresholds that trigger its deferred consideration while delivering the expected cross-border labour benefits?
- When will improved earnings and leverage be sufficient for the Board to reconsider its paused dividend policy?