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DURATEC LIMITED — Interim / Quarterly Report 2026
Feb 24, 2026
64799_rns_2026-02-24_0310a783-5b6b-43b6-aa1c-4436aa1b4efc.pdf
Interim / Quarterly Report
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1H FY26 Results Presentation
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Important Notice & Disclaimer
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This presentation has been prepared by Duratec Limited (ACN 141 614 075) ("Duratec", "Duratec Group" and the "Company"). The information contained in this presentation is for information purposes only.
The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, Duratec has not considered the objectives, financial position or needs of any particular recipient. Duratec strongly suggests that investors consult a financial advisor prior to making an investment decision.
No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Duratec, its respective related bodies corporates, shareholders, directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability for any loss arising from the use of information contained in this presentation or otherwise arising in connection with this presentation.
This presentation may include "forward-looking statements". Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Duratec and its respective officers, employees, agents or associates, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Duratec assumes no obligation to update such information. Recipients of this presentation are strongly cautioned not to place undue reliance on forward-looking statements.
This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment.
The distribution of the presentation in jurisdictions outside Australia may be restricted by law and you should observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of Duratec have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Chris Oates Managing Director
Meet our executives
Ashley Muirhead Chief Financial Officer
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1H FY26 Highlights
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Business History
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Growth over 15 years
KEY BUSINESS DRIVERS
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Aged infrastructure
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Asset capacity expansion
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Growing asset markets
KEY MARKET SECTORS
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Defence
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Mining & Industrial
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Building & Facade
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Energy
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Emerging Sectors – Marine,
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Transport Infrastructure, and Water Infrastructure
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RC
Construction
(DDR)
AsClear
A&B
CAGR [1] Welding
GFE
(WPF)
30.2% (WPF)
WPF
Listed
on ASX
Spatial
DDR Division
Australia
Defence
Division
MEnD
East
Consulting
Coast
Established
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Note 1: Compound Annual Growth Rate over 15 Years
Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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5
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Our Portfolio
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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1H FY26 Financial Highlights
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$273.3m $27.5m Revenue[1] EBITDA[2] ↓4.9% on 1H FY25 $287.3m ↑2.0% on 1H FY25 $26.9m
1H FY26 Revenue by Operating Segment 5
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$13.4m 5.25c NPAT Earnings Per Share[3] ↑3.5% on 1H FY25 $13.0m ↑1.2% on 1H FY25 5.19c
1.75c $76.0m Cash Dividend[4] ↓9.5% from $84.0m on 30 Jun Per share, fully franked 2025
Note 1: Revenue excludes DDR Australia Pty Ltd and RC Constructions WA Pty Ltd (49% share) and DXP Energy Solutions Pty Ltd (70% share)
Note 2: Normalisation of EBITDA accounts for tax effect from Duratec Limited’s equity accounted investments in DDR Australia Pty Ltd and DXP Energy Solutions Pty Ltd and one-off costs Note 3: Basic earnings per share (cents)
Note 4: Interim dividend of 1.75 cents per share, fully franked
Note 5: Emerging Sectors relate to Marine, Transport Infrastructure, and Water Infrastructure, which is disclosed as "Other segments" in Note 2 of the Financial Statements
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Financial Results
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1H FY26 Financial Results
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Revenue was slightly lower versus PCP primarily due to project timing and delivery phasing in Defence, Mining & Industrial and Energy sectors, whilst record revenue was achieved in Building & Facade and in Emerging sectors in the period.
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Gross profit achieved was highest to date for the period, with strong gross profit margins across all sectors, reflecting the benefits of self perform and Early Contractor Involvement works.
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Overheads increased due to strategic investments in acquisitions, enhancements to business systems and initiatives to support future growth.
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Normalised EBITDA improved by 2%, driven by the underlying project profitability and solid contributions from equity-accounted investment, DDR Australia Group, partly offset by higher overheads associated with the strategic investment initiatives.
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NPAT increased by 3.5% versus PCP, reflecting period profits and a lower effective tax rate driven by employee share trust deductions and equity accounted profits from DDR Australia Group that have already been taxed.
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EPS increased to 5.25 cents, with the interim dividend maintained at 1.75 cents, reflecting a balanced approach to shareholder returns and growth investment.
| FY26 H1 FINANCIAL RESULTS | Consolidated Entity |
|---|---|
| FY26 H1 FY25 H1 PCP $'000 $'000 Movement |
|
| Revenue | 273,304 287,256 -4.9% 55,406 53,285 4.0% 25,063 25,137 -0.3% 27,466 26,936 2.0% 13,428 12,971 3.5% |
| Gross Profit | |
| Reported EBITDA | |
| Normalised EBITDA | |
| NPAT | |
KEY OPERATING METRICS
| KEY OPERATING METRICS | |
|---|---|
| Gross Margin % | 20.3% 18.5% 9.4% 10.0% 9.4% 6.6% 4.9% 4.5% 8.5% 5.25 5.19 1.2% 1.75 1.75 0.0% |
| Normalised EBITDA % | |
| NPAT% | |
| Earnings per Share (basic) - cents | |
| Interim Dividend (per share fully franked) - cents | |
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Cash Flow
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Cash Conversion 67%
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Lower than PCP due to the timing of upfront procurement
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Investment in Growth Solid Return to Shareholders
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• $3.6m in Plant & Equipment
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• $4.6m in Business Acquisitions $5.6m of cash dividends paid during 1H FY26
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Calculated as OCFBIT[2] to Adjusted EBITDA[1]
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Note 1: Adjusted EBITDA accounts for the tax effect from Duratec Limited’s equity accounted investments in DDR Australia Pty Ltd and DXP Energy Solutions Pty Ltd and other one-off costs Note 2: Operating Cash Flow Before Interest and Tax (OCFBIT)
Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Balance Sheet Summary
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Balance sheet continued to strengthen during 1H FY26 with Net Assets increasing by 14% to $84.8m.
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Trade debtors reduced during the period, reflecting continued focus on credit discipline and collections.
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Contract assets increased, reflecting the timing of project invoicing milestones.
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Intangible assets and contingent consideration payable increased following the acquisition of EIG during the period.
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Borrowings reduced during the period, reflecting repayments against asset financing and short-term cash advance facilities.
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Trade and other payables decreased during the period, primarily reflecting the timing of supplier payments and settlement of project related obligations.
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The Group continues to be well supported by its debt providers, with sufficient available headroom to support strategic growth initiatives and working capital requirements.
| FINANCIAL POSITION AS AT 31 DECEMBER 2025 | Consolidated Entity |
|---|---|
| Dec-25 Jun-25 $'000 $'000 |
|
| ASSETS Cash and cash equivalents |
76,012 84,026 |
| Trade and other receivables | 42,819 61,412 |
| Contract assets | 31,382 24,819 |
| Property,plant and equipment | 35,291 37,199 |
| Intangible assets | 19,135 13,093 |
| Investments accounted for usingthe equitymethod | 9,675 7,878 |
| Deferred tax assets | 7,186 5,213 |
| Current income tax receivable | 1,202 - |
| Other assets | 20,901 17,734 |
| Total Assets | 243,603 251,374 |
| LIABILITIES Trade and otherpayables |
69,566 84,732 |
| Borrowings | 32,849 35,388 |
| Contract liabilities | 20,528 24,645 |
| Provisions | 15,228 14,865 |
| Contingent considerationpayable | 3,429 - 17,250 17,419 |
| Other liabilities | |
| Total Liabilities | 158,850 177,049 |
| Net Assets | 84,753 74,325 |
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Operational Highlights
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Safety & Sustainability
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Workforce increased to 1,342
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Technological advancement through new HRIS project
People & Culture Our People
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Redeveloped Leadership Fundamentals Program
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Refresh of Vision, Mission, and Values underway
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Comprehensive compliance review of P&C documentation and induction
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TRIFR[1] decreased to 5.02 and LTIFR[2] increased to 0.33
Safety & Wellbeing Wellbeing
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Implementation of HammerTech platform
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Development of the Critical Risk Management Framework
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Commenced implementation of the Psychosocial Safety Framework
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Reflect Reconciliation Action Plan endorsed, implementation underway
Responsible Business
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Mandatory climate-reporting readiness (AASB S2) progressed
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Emissions measurement strengthened
Delivery
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Climate Risk assessment methodology updated
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Continued community focused engagements and sponsorships
Note 1: Total Recordable Injury Frequency Rate: 12-month rolling total/figure (Jan-Dec 2025 - hours worked 2,985,843) Note 2: Lost Time Injury Frequency Rate
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Defence
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Performance
$82.2m $13.4m 16.3% Revenue Gross Profit Gross Margin
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Early procurement commenced for DEJV works at HMAS Stirling ($5m, announced 8 January), recent order for a further $9m of early on-site works to ensure programme targets are met
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First construction company in Australia to achieve ISO19443 accreditation for the provision of services to the nuclear sector
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Final completion and formal handover of Tindal project, submission of Learmonth tender
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Successful delivery of high-security projects on Defence assets has led to contracts with other Federal Government agencies like CSIRO and Airservices
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Expanded into sustainment of military operational assets in NSW and NT, similar to Duratec’s service offering across the Mining and Industrial sectors
Outlook
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DEJV has started marine work at HMAS Stirling , with landside work to commence in late Q3 or early Q4. This will see a significant increase in Defence sector contributions to business performance
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Solid pipeline of Defence and Aviation Fuel Storage projects, combined with current and new capabilities, will support continued sector growth
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Mining & Industrial
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Performance
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$57.7m $11.8m 20.4%
Revenue Gross Profit Gross Margin
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Revenue impacted by delays in major project awards
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BHP portfolio further diversified with Port Maintenance revenue stream now active
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Mining services offering enhanced with new in-house mechanical and access capabilities
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Newmont services ramping up as additional capabilities come online
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Tom Price works continue with going opportunities with Rio Tinto
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Northern Territory ramp-up with Rio/Gove with further prospects in sustainment, make safe, and decommissioning.
Outlook
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Expansion of collaborations with major miners in North West and broader service offerings enabling larger MSA opportunities
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Strategic expansion into NSW Mining sector, targeting opportunities in the Hunter Valley
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Investment in Queensland's Mining sector anticipated to drive growth in hardrock mining alongside works with industrial assets in Gladstone
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Building & Facade
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Performance
$64.3m $13.0m 20.2% Revenue Gross Profit Gross Margin
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Record revenue achieved, representing strongest half-year performance to date
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Conversion of Brisbane and Perth ECI’s into main works projects
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Curtin University project has commenced onsite with procurement finalised
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Strategic focus on broadening service offerings, leveraging expertise in both remediation and new construction projects
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Façade remediation at Sydney’s iconic ‘Paddy’s Markets’ Haymarket is nearing completion
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Heritage projects continue as a focus for clients, our expert delivery of façade remediation is driving this trend
Outlook
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Sector activity increasing with recent successful awards and solid pipeline of projects
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A national presence and integrated delivery ensure consistent quality
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Ongoing growth driven by digital engineering in-house technical expertise and early design engagement
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Energy
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Performance
$27.3m $8.3m 29.3% Revenue Gross Profit Gross Margin
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Softer revenue in first half due to project timing of awards and conclusion of WSA contract
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Acquisition of EIG (AMD Electrical) bringing electrical and fuel systems expertise in-house
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Expanded WPF into Queensland, leveraging group geographic coverage and synergies
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Santos Varanus Island B Tank Refurbishment Project Award
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Offshore services coverage through Santos, Vermillion Energy and Woodside assets
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Established DXP Energy Solutions, enhancing ability to deliver end-to-end lifecycle service within the Energy Sector
Outlook
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Stronger second half growth anticipated due to recent project awards and pipeline
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Pursue long term maintenance service agreement opportunities at a National Level
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Strategic geographical expansion, aligned with the specialist skillset of WPF
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Continue to leverage synergies across Duratec, WPF, and EIG capabilities
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Emerging Sectors
Performance
$40.8m $8.9m 21.8% Revenue Gross Profit Gross Margin
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Record performance across this sector
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Ongoing sector growth driven by investment in successful diversification strategies
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Multiple Marine contract wins in Victoria, Tasmania and Queensland cementing Duratec as a leading National Marine Contractor
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Water infrastructure expansion in NSW and Victoria supported by increased government investment in essential services which is anticipated to continue
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Diversification into high-security Federal and State clients contributed to awards with CSIRO and Airservices
Outlook
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Ongoing larger scale Marine opportunities coming online as East Coast capability matures
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Increasing Water and Wastewater opportunities in NSW and Victoria
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Strong pipeline of high-security projects with a growing client base
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Further opportunities to diversify client and sector-base by leveraging new subsidiaries
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Entity Update
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HIGHLIGHTS
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1H FY26 Revenue of $22.1m[1] , gross profit of $6.1m, gross margin 27.8%
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Award of Santos Varanus Island B Tank Modifications
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Continuation of Santos Decommissioning programme
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Inpex CPF Skid Manufacture packages completed
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Geographical expansion with the establishment of the Queensland Division and pipeline repair works
HIGHLIGHTS
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Strategic platform expanding Duratec into high-margin O&M, well services and DECOM
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Early traction through contract awards, Condor partnership and Surat Basin FEED & Detailed Engineering wins
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Capital-light, personnel-led delivery model with strong profit margins
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Access to Tier 1 operators and repeat program visibility
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Immediate earnings accretion with minimal fixed overhead
OUTLOOK
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Waitsia Stage 2B Piping & Structural Fabrication
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Woodside Goodwyn Platform – Davit Boat & Structural Repair
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Woodside SCA FPU Hookup Project
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Inpex ILNG – AGI Repairs & Hot-Tap Works
OUTLOOK
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Multi-phase program management with expansion upside for well abandonments in PNG
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Conversion pathway from FEED & Detailed Engineering into construction and fabrication delivery
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Active pursuit of offshore WA DECOM contract, expanding into high-value offshore energy markets
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DXP[2] is positioned to deliver meaningful EBITDA contribution and strategic value uplift to Duratec Note 1: Majority of the Revenue is accounted for in the Energy sector
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Note 2: Equity accounted investment jointly owned by Duratec (70%) and Proxima (30%)
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Entity Update
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HIGHLIGHTS
OUTLOOK
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Completed acquisition of RGK Resources, a NATA accredited specialist NDT company servicing Energy sector clients
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Expansion of NDT services through Duratec's and WPF's existing relationships in the Energy sector
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Increase Cathodic Protection service offerings to key Energy, Water, and Defence sector clients nationally
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Increased MEnD's direct involvement with early-stage Defence feasibility and design projects
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New master services agreement set up with national Defence Project Delivery Services provider to increase early opportunity identification
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Delivered significant ECI project for key mining and resources client identifying over $30m worth of project works
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Established initial laboratory services on Eastern Seaboard
HIGHLIGHTS
OUTLOOK
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1H FY26 Revenue of $7.4m, gross profit of $2.4m
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Anticipate continued growth, leveraging combined Duratec-EIG capability and service offering
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Completed acquisition and integration of AMD Electrical (EIG) July 2026
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(EIG) July 2026 • Warehouse Development Commercial Electrical Works
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• Kimberly Marine Support Base (KMSB) Fuel and Electrical & • OMSB Fuel and electrical installation communication installation • HMAS Stirling Moresby Small Boat Harbour
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• Onslow Marine Support Base (OMSB) Fuel Tank Fabrication • Learmonth Hydrant Line installation works for • Solar Control Panel Supply works Department of Defence • Rio Tinto Nammuldi Reel Installation • Rio Tinto Bulk Lube Facility project
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Entity Update
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HIGHLIGHTS
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FY26 Half Year Revenue[1] of $56.6m
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Gross profit of $10.8m, achieving 16.5% increase from same period in FY25
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Record $95m of work in hand
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Quoted works >$200m across Defence, Renewables and Infrastructure sectors
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Successful regional expansion of RC Construction to SA and the NT, delivering great results for the DDR group
OUTLOOK
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Increase in self-perform civil and concrete works, increasing Aboriginal engagement and head contract performance
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Revenue diversity to be achieved with high probability pursuits in the renewables and State Government sectors
Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Note 1: Equity accounted investment owned by Duratec (49%) and Hutcheson & Co Holdings Pty Ltd (51%)
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Master Services Agreements
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MSA and annuity style projects
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represented approximately 31% of revenue for 1H FY26 compared to 26% of the 1H FY26 revenue.
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Annuity style contracts are more profitable than Duratec’s average gross profit percentage
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Continued focus on growing MSA work with existing clients through diversification of services and sector targeting
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MSA revenue sits outside of the Order Book.
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1H FY26 MSA and annuity style projects represented 31% of revenue
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Pipeline & Outlook
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1, 2
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1, 2, 3
5
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Note 1: As of 23 February 2026
Note 2: Figures include 49% share of DDR Australia Pty Ltd and RC Construction WA Pty Ltd and 70% share of DXP Energy Solutions Pty Ltd, Order Book, Tenders, and Pipeline Note 3: Tenders includes submitted and currently being tendered opportunities
Note 4: Pipeline represents tangible opportunities identified in the market by the Duratec group of companies, including Tenders
Note 5: Emerging Sectors relate to Marine, Transport Infrastructure, and Water Infrastructure, which is disclosed as "Other segments" in Note 2 of the Financial Statements
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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Outlook
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Short term Outlook
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Recent increase in order book and potential imminent wins
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MSA annuity expected grow in line with total revenue growth
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Strong contribution from WPF's Varanus Island B Tank Modification project expected
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Ramp up of work at HMAS Stirling Garden Island expected in 2H26
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Building and Façade’s projects continue to run strongly through 2H26 and beyond
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Further expected growth through all subsidiary companies
Medium to Long-term Outlook
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ECI contracting model take up still strong across many sectors
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$8b spend planned for infrastructure upgrades at HMAS Stirling Garden Island WA as well as a planned $20b spend at Henderson
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Strong focus on Oil and Gas decommissioning (DXP, MEnD and WPF)
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Strong tailwinds in Mining, Energy and Building Maintenance
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Expansion into the Pacific region with existing clients
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Well funded for future growth
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Further strategic acquisitions anticipated
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
Questions & Answers
Wednesday, 25 February 2026
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Questions
& Answers
Wednesday, 25 February 2026
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Chris Oates Managing Director
Ashley Muirhead Chief Financial Officer
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Appendix
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Corporate Snapshot
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Share Price and Volume – 02/06/25 to 20/02/26
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$2.2
$2.
$1.8
$1.6
$1.4
Share price
5.0
4.0
3.0
2.0
1.0
0.0
Jun 25 Jun 25 Jul 25 Aug 25 Aug 25 Sep 25 Oct 25 Oct 25 Nov 25 Dec 25 Dec 25 Jan 26 Feb 26
Volume
Share price (AUD)
Volume (m)
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Capital Structure
Duratec Limited Board
| ASX code | DUR |
|---|---|
| Shares on issue | 257.8m |
| Share price as at 20 February 2026 | $2.33 |
| Market capitalisation as at 20 February 2026 | $600.78m |
| Cash as at 31 December 2025 | $76.0m |
| Martin Brydon | Non-Executive Chairman |
|---|---|
| Chris Oates | Managing Director |
| Phil Harcourt | Non-Executive Director |
| Gavin Miller | Non-Executive Director |
| Emma Scotney | Non-Executive Director |
| Dennis Wilkins | Company Secretary |
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Duratec Limited | 1H FY26 Results Presentation | 25 February 2026
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