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GR ENGINEERING SERVICES LIMITED — Interim / Quarterly Report 2026
Feb 19, 2026
65003_rns_2026-02-19_29ad61fd-eb59-41c3-8ca7-190fa94fb0fc.pdf
Interim / Quarterly Report
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GR Engineering Services Limited Half Year Financial Report For the Half Year Ended 31 December 2025
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
TABLE OF CONTENTS
| DIRECTORS’ REPORT | 3 |
|---|---|
| AUDITOR'S INDEPENDENCE DECLARATION | 6 |
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE | 7 |
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 8 |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 9 |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 10 |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 11 |
| DIRECTORS’ DECLARATION | 17 |
| INDEPENDENT AUDITOR’S REVIEW REPORT | 18 |
| APPENDIX 4D | 20 |
2
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
DIRECTORS’ REPORT
Your directors present their report on GR Engineering Services Limited (ASX:GNG) (the Group or consolidated entity) for the half year ended 31 December 2025 (HY26).
DIRECTORS
The names of the consolidated entity’s directors in office during the half year and until the date of this report follow. The Directors were in office for this entire period unless otherwise stated.
Phillip Lockyer (Non-Executive Chairman) Tony Patrizi (Managing Director) Peter Hood (Non-Executive Director) Giuseppe (Joe) Totaro (Non-Executive Director) Deborah (Deb) Morrow (Non-Executive Director)
CHIEF FINANCIAL OFFICER & COMPANY SECRETARY
Omesh Motiwalla
PRINCIPAL ACTIVITIES
The consolidated entity’s activities have been the provision of high quality process engineering, detailed engineering design, process control and automation design and construction services to the mining and mineral processing industry and the provision of operations, maintenance, engineering and advisory services to the energy sector.
REVIEW OF RESULTS AND OPERATIONS
During the half year period, the consolidated entity achieved revenue of $218.0 million (HY25: $272.1 million), EBITDA of $27.8 million (HY25: $34.5 million) and profit before tax of $25.0 million (HY25: $31.8 million). Refer to note 10 on page 15 of this report for segment analysis.
The HY25 results were characterised by solid operational performance across the Group, with work on key projects continuing into the second half of FY26 and FY27 for GR Engineering Services (GRES), GR Production Services (GRPS), Mipac Holdings (Mipac) and Paradigm Engineers (Paradigm).
At 31 December 2025, the Group's cash position was $86.5 million (30 June 2025: $71.0 million) with no external debt. During HY26, the Group paid out $20.1 million in dividends (HY25: $16.7 million). The high cash generation, nil external borrowings, low capital intensity and excellent project delivery all contributed to the maintenance of a robust and stable balance sheet. The Group has significant headroom in its guarantee and bonding facilities.
The Group's revenue for FY26 is forecast to be in the range of $500 million to $520 million.
Mineral Processing Design and Construction
New and ongoing projects
GRES' design and construction order book of current work includes:
-
King of the Hills Operations Stage 1 and Stage 2 Upgrade - $155 million EPC contract with a wholly owned subsidiary of Vault Minerals Limited for the Stage 1 and Stage 2 Upgrade for the King of the Hills Operations in Western Australia. The project scope comprises the design, procurement, construction, installation and commissioning of the upgrade to the King of the Hills dry processing plant and the wet processing plant.
-
Eloise Copper Expansion Project - $78 million EPC Contract with a wholly owned subsidiary of AIC Mines Limited for the expansion of the Eloise copper processing facility in Northern Queensland. This project was awarded in June 2025.
-
Lake Way Project Upgrade - $36 million EPC contract with Piper Preston Pty Ltd, a wholly owned subsidiary of Sev.en Global Investments, for the upgrade of the Lake Way Project. This sulphate of potash project is located near Wiluna in Western Australia. This project was awarded in August 2025.
GRES has commenced early works on the Laverton Processing Plant Project and Bellevue Paste Plant Project - refer Subsequent Events note below.
In addition to the above ongoing projects, GRES is executing preliminary and minor project works and is involved in multiple ongoing FEED and early contractor involvement engagements.
3
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
DIRECTORS’ REPORT
Studies and Consulting
GRES has been engaged on a number of engineering and consultancy assignments on a range of domestic and international projects with scopes extending to engineering studies, process design, procurement support and site supervision services associated with new and existing operations.
During HY26, GRES completed 22 studies and as at 31 December 2025, was engaged on a further 31 studies across a broad range of commodities for projects in Australia and abroad. The level of ongoing study work is high.
Process Controls - Mipac and Paradigm
Mipac and Paradigm are leading providers of control systems, operational technology and engineering services primarily in the mineral processing, iron ore and energy sectors. With an established proven track record of success, the process controls group leverages technology to deliver solutions for operational challenges across a project's entire life cycle, minimising risk and driving productivity.
During HY26, the business continued to deliver control systems, automation and digital solutions for key repeat clients such as First Quantum Minerals, BHP Group, Rio Tinto, Glencore Technology, Anglo American, Ok Tedi Mining and other smaller conglomerates.
Mipac and Paradigm are achieving higher utilisation compared to the prior year and near-term revenue visibility remains high.
Energy - GR Production Services
The Group's production services business, GRPS, delivered solid revenue performance through its continued provision of operations and maintenance services to the energy sector. Its activities included conventional gas, coal seam gas (CSG) to liquefied natural gas (LNG), LNG (offshore and onshore), green hydrogen production and transport, carbon sequestration and the onshore and offshore oil and gas industries across Australia.
In Queensland and South Australia, GRPS managed and executed maintenance and operational support across multiple gas production facilities and more than 3,000 CSG and conventional oil and gas wells. In addition to ongoing work for Santos in the Surat and Cooper Basins, services were delivered to key clients including Shell QGC, Westside Corporation and Senex Energy. The business also broadened its service offering in the region with brownfields engineering and construction services, supporting facility upgrades and sustaining capital programs. GRPS remained the regulated operator of the Moranbah Gas Project under a long term agreement and continued to support onshore clients with respect to carbon sequestration initiatives and operational advisory services for various Australian green hydrogen developments.
In the Northern Territory, GRPS continued to provide maintenance services for the Blacktip gas field production facilities, both onshore and offshore. The business also maintained its support to the Ichthys LNG upstream and downstream facilities, supplying production and technical personnel to INPEX and assisting with maintenance shutdown planning and execution support. GRPS also performed operational readiness activities for Tamboran Resources in the Beetaloo Basin, supporting the safe and efficient transition of new gas production facilities into operation.
In Western Australia, GRPS remained a leading provider of operations and maintenance services in the Perth Basin, delivering engineering, maintenance and operational support to Mitsui E&P Australia (MEPAU) and Beach Petroleum's Waitsia asset. The business also continued to support Chevron's Gorgon and Wheatstone projects, as well as Vermillion Energy's Wandoo asset.
4
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
DIRECTORS’ REPORT
Safety
The Group is founded on a strong belief in its core values. These values drive the Group to constantly improve its working environment. The Group's commitment to health, safety and well-being for all its personnel at all times is managed to ensure a safe working environment and to ensure that no one works in an unsafe manner. The Group is committed to the target of zero injuries and operates using accredited OH&S, Integrated Management and Quality Management Systems.
The Group applies risk and hazard identification methodologies in developing safety and health management plans that are tailored to each project and its client's requirements. The Group encourages its employees and subcontractors to report all incidents, accidents and near miss occurrences within its workplaces and all reported incidents are investigated.
The Group's Total Reportable Injury Frequency Rate (TRIFR) for HY26 was 1.88.
DIVIDENDS
During HY26, a final dividend for financial year ended 30 June 2025 was paid. This was a fully franked dividend of 12.0 cents per share, paid on 25 September 2025.
A fully franked dividend of 12.0 cents per share has been declared for the 6 months ended 31 December 2025 (31 December 2024: 10.0 cents per share fully franked). The ex-dividend date for the interim dividend is 2 March 2026, the record date for determining entitlements to the interim dividend is 3 March 2026 and the payment date for the interim dividend is 25 March 2026.
The Group has a Dividend Reinvestment Plan (DRP) which enables all shareholders to elect to have all or some of their dividend reinvested in additional Group shares. The DRP is applicable to the FY26 interim dividend. The Directors have determined that a 2.5% discount will apply to the allocation price.
AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS
The auditor’s independence declaration to the directors is included on page 6 of the Half Year Financial Report.
EVENTS AFTER THE REPORTING DATE
On 17 February 2026, GRES was appointed as preferred contractor by Brightstar Resources Limited in relation to the engineering, procurement and construction (EPC) contract for the Laverton Processing Plant. The EPC contract is subject to the achievement of Final Investment Decision and finalisation of project funding, both of which are anticipated to be completed by late March 2026. The estimated contract value is $115 million. An early works agreement has been executed and ordering of long lead items and engineering works have commenced.
On 17 February 2026, Bellevue Gold Limited announced that GRES is expected to be appointed to design and construct a paste fill plant at the Bellevue Gold Project in Western Australia. The estimated contract value is $30 million. The ordering of long lead items has commenced.
Signed in accordance with a resolution of directors made pursuant to s.306(3) of the Corporations Act 2001.
On behalf of the Directors
______ Tony Patrizi Managing Director Date: 20 February 2026
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GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
AUDITOR'S INDEPENDENCE DECLARATION
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6
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| Notes Revenue 3(a) Interest income Other income 3(b) Expenses Employee benefits expense 3(c) Depreciation and amortisation expense 3(d) Equity based payments Finance costs 3(e) Direct materials and subcontractor costs Accountancy & audit fees Marketing Expected credit losses, write-offs Occupancy Administration Profit before income tax Income tax expense Net profit for the period Other comprehensive income Items that may be reclassified subsequently to profit or loss : Fair value gain (loss) on equity investments designated at fair value through other comprehensive income Exchange differences on translating foreign operations Total other comprehensive income, net of income tax Total comprehensive income for the period Profit attributable to owners of the parent Total comprehensive income attributable to owners of the parent Earnings per Share: Basic (cents per share) Diluted (cents per share) |
Half-Year Ended Half-Year Ended 31 December 2025 31 December 2024 $ $ 218,012,361 272,114,716 1,225,069 1,646,833 1,239,838 1,661,154 (72,637,144) (96,710,070) (3,772,410) (3,987,248) (1,316,259) (1,190,401) (285,000) (312,581) (108,407,062) (132,740,031) (386,470) (305,180) (193,961) (191,493) (159,895) (120,409) (327,499) (363,084) (8,018,951) (7,697,061) |
|---|---|
| 24,972,617 31,805,145 (7,737,758) (9,981,203) |
|
| 17,234,859 21,823,942 |
|
| 2,637,618 (107,439) (294,719) 434,795 |
|
| 2,342,899 327,356 |
|
| 19,577,758 22,151,298 |
|
| 17,234,859 21,823,942 |
|
| 19,577,758 22,151,298 |
|
| Cents per share Cents per share |
|
| 10.27 13.07 |
|
| 10.08 12.68 |
The accompanying notes form part of these Condensed Consolidated Financial Statements
7
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2025
| Notes ASSETS Current Assets Cash and cash equivalents 4 Trade and other receivables 5 Inventories Other Total Current Assets Non-Current Assets Deferred tax asset Property, plant and equipment Right of use assets Trade and other receivables 5 Financial assets 11 Intangible assets Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Lease liabilities Income tax Provisions Contract liabilities 6 Total Current Liabilities Non-Current Liabilities Lease liabilities Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 7 Reserves Retained earnings TOTAL EQUITY |
31 December 30 June 2025 2025 $ $ 86,509,898 70,959,192 63,047,895 63,991,410 69,339 69,951 3,788,347 2,798,508 |
|---|---|
| 153,415,479 137,819,061 |
|
| 4,724,969 5,129,059 6,462,365 6,418,350 7,198,991 8,970,972 4,304,962 5,063,027 5,321,490 1,565,183 26,756,268 27,540,262 |
|
| 54,769,045 54,686,853 |
|
| 208,184,524 192,505,914 |
|
| 57,975,147 46,374,284 1,949,511 2,481,088 2,802,432 5,240,596 24,304,389 22,372,552 42,838,955 39,012,678 |
|
| 129,870,434 115,481,198 |
|
| 5,439,472 6,695,812 2,497,588 1,481,104 |
|
| 7,937,060 8,176,916 |
|
| 137,807,494 123,658,114 |
|
| 70,377,030 68,847,800 |
|
| 51,676,271 47,638,103 4,288,148 3,944,257 14,412,611 17,265,440 |
|
| 70,377,030 68,847,800 |
The accompanying notes form part of these Condensed Consolidated Financial Statements
8
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| Notes Cash flows from operating activities Receipts from customers Payments to suppliers and employees Income tax paid Interest received Net cash flows provided by operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from sale of financial assets Net cash flows used in investing activities Cash flows from financing activities Payment of lease liabilities Dividends paid Interest paid Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Effects of exchange rate changes of balances of cash held in foreign currencies Cash and cash equivalents at end of period 4 |
31 December 31 December 2025 2024 $ $ 239,614,242 331,203,910 (191,489,172) (262,672,426) (9,771,833) (14,033,279) 1,225,069 1,646,834 |
|---|---|
| 39,578,306 56,145,039 |
|
| (1,311,311) (2,277,241) 83,962 39,151 10,152 801,550 |
|
| (1,217,197) (1,436,540) |
|
| (1,756,167) (1,052,758) (19,364,787) (16,700,847) (285,000) (311,535) |
|
| (21,405,954) (18,065,140) |
|
| 16,955,155 36,643,359 70,959,192 74,645,675 (1,404,449) 542,377 |
|
| 86,509,898 111,831,411 |
The accompanying notes form part of these Condensed Consolidated Financial Statements
9
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| Balance as at 30 June 2024 Profit for the period Other Comprehensive income for the period Total Comprehensive income for the period Dividends paid Issue of shares Share based payments Realised gain on Investments in equities transferred to retained earnings Balance as at 31 December 2024 Balance as at 30 June 2025 Profit for the period Other Comprehensive income for the period Total Comprehensive income for the period Dividends paid Issue of shares Issue of shares under Dividend Reinvestment Plan Share based payments Realised gain on Investments in equities transferred to retained earnings Balance as at 31 December 2025 |
Issued capital Performance Rights Reserve Foreign Currency Translation Reserve Investment Revaluation Reserve Retained Earnings Total $ $ $ $ $ $ |
|---|---|
| 46,979,443 2,913,435 61,617 (516,364) 16,888,392 66,326,523 |
|
| - - - - 21,823,942 21,823,942 - - 434,795 (107,439) - 327,356 |
|
| - - 434,795 (107,439) 21,823,942 22,151,298 |
|
| - - - - (16,700,847) (16,700,847) 400,750 (400,750) - - - - - 1,190,401 - - - 1,190,401 - - - 401,949 (401,949) - |
|
| 47,380,193 3,703,086 496,412 (221,854) 21,609,538 72,967,375 |
|
| 47,638,103 4,761,767 (175,417) (642,093) 17,265,440 68,847,800 |
|
| - - - - 17,234,859 17,234,859 - - (294,719) 2,637,618 - 2,342,899 |
|
| - - (294,719) 2,637,618 17,234,859 19,577,758 |
|
| - - - - (19,364,787) (19,364,787) 3,311,615 (3,311,615) - - - - 726,553 - - - (726,553) - - 1,316,259 - - - 1,316,259 - - - (3,652) 3,652 - |
|
| 51,676,271 2,766,411 (470,136) 1,991,873 14,412,611 70,377,030 |
The accompanying notes form part of these Condensed Consolidated Financial Statements
10
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
1 CORPORATE INFORMATION
The financial report of GR Engineering Services Limited and its subsidiaries for the half year ended 31 December 2025 was authorised for issue in accordance with a resolution of the directors on 18 February 2026.
GR Engineering Services Limited is a limited company incorporated and domiciled in Australia. The registered office of GR Engineering Services Limited is located at 71 Daly Street, Ascot, Western Australia.
2 MATERIAL ACCOUNTING POLICIES
(a) Basis of preparation
The condensed consolidated financial statements have been prepared on the basis of historical cost, except for certain financial instruments that are measured at revalued amounts or fair values. Historical cost is generally based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.
The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the consolidated entity’s annual financial report for the financial year ended 30 June 2025, except for the impact of the Standards and Interpretations described below. The accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.
(b) Statement of Compliance
The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 ‘Interim Financial Reporting’. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’. The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.
(c) Standards and Interpretations adopted in the current half year period
The accounting policies adopted in the preparation of the half-year financial report are consistent with those applied in the preparation of the consolidated entity’s annual financial report for the year ended 30 June 2025, except for new standards, amendments to standards and interpretations which became effective on 1 July 2025 as set out below.
In the current half year, the consolidated entity has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are relevant to its operations and effective for an accounting period that begins on or after 1 July 2025, which include:
• AASB 2023-5 - Lack of exchangeability
The adoption of these Standards and Interpretations does not have any impact on the disclosures or the amounts recognised in the consolidated entity’s condensed consolidated financial statements.
(d) Standards and Interpretations issued but not yet adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet effective have not been adopted by the consolidated entity for the reporting period ended 31 December 2025. Management are in the process of assessing the impact of the adoption of these Standards and Interpretations on the consolidated entity.
11
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| 3 REVENUES AND EXPENSES (a) Rendering of services (b) Other income Government rebates and subsidies Profit on sale of fixed assets Net foreign exchange (loss)/gain Sundry revenue (c) Employee benefits expense Wages and salaries Workers’ compensation costs Superannuation costs (d) Depreciation and amortisation Depreciation of fixed assets Depreciation of right of use assets Amortisation of intangible assets (e) Finance costs Interest charges Disaggregation of revenue & time of revenue recognition Rendering of services - mineral processing - over time Rendering of services - oil & gas - over time |
31 December 2025 31 December 2024 $ $ 169,934,900 222,157,749 48,077,461 49,956,967 |
|---|---|
| 218,012,361 272,114,716 |
|
| 112 888 83,962 39,151 (64,563) 1,028,922 1,220,327 592,193 |
|
| 1,239,838 1,661,154 |
|
| 63,511,786 87,071,255 1,151,280 1,669,493 7,974,078 7,969,322 |
|
| 72,637,144 96,710,070 |
|
| 1,638,978 1,887,626 1,304,301 1,304,265 829,131 795,357 |
|
| 3,772,410 3,987,248 |
|
| 285,000 312,581 |
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GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| 4 Cash at bank and in hand 5 Trade receivables - current Term deposits held for security Loan receivable - current Loan receivable - non current Other receivables 6 CONTRACT LIABILITIES 7 ISSUED CAPITAL Ordinary Shares Issued and fully paid Issue of ordinary shares At 30 June 2025 At 31 December 2025 CASH AND CASH EQUIVALENTS Cash at bank earns interest at floating rates based on daily bank rates. TRADE AND OTHER RECEIVABLES Contract assets - oil and maintenance contracts Contract assets - mineral processing contracts Contract liabilities - current liabilities Issue of shares from exercise of performance rights Issue of shares under dividend reinvestment plan |
31 December 30 June 2025 2025 $ $ 86,509,898 70,959,192 |
|---|---|
| 86,509,898 70,959,192 |
|
| 31 December 30 June 2025 2025 $ $ 45,879,460 44,627,244 11,146,857 12,834,050 2,673,228 1,637,175 |
|
| 13,820,085 14,471,225 |
|
| 1,564,824 1,594,258 1,519,784 1,599,854 4,304,962 5,063,027 263,742 1,698,829 |
|
| 67,352,857 69,054,437 |
|
| 31 December 30 June 2025 2025 $ $ 42,838,955 39,012,678 |
|
| 42,838,955 39,012,678 |
|
| 31 December 30 June 2025 2025 No of shares No of shares |
|
| 169,789,911 167,353,472 |
|
| No of shares $ 167,353,472 47,638,103 2,250,000 3,311,615 186,439 726,553 |
|
| 169,789,911 51,676,271 |
Fully paid ordinary shares carry one vote per share and carry a right to dividends.
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GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
| 8 Bank guarantees Bank guarantees issued CONTINGENCIES |
31 December 30 June 2025 2025 $ $ 12,300,317 5,716,628 |
|---|---|
The consolidated entity's standby multi-option facility with National Australia Bank has a limit of $60,000,000. The facilities are secured by a fixed and floating charge over all the assets of the consolidated entity. The consolidated entity provides bank guarantees under this facility to support project performance in favour of certain clients. The amount of these bank guarantees at 31 December 2025 is $9,569,469 (30 June 2025: $3,632,878).
The consolidated entity has a bank guarantee facility with National Australia Bank to provide guarantees for the security of rental properties to the value of $1,591,453 (30 June 2025: $914,922). The amount of bank guarantees issued under this facility at 31 December 2025 is $1,591,453 (30 June 2025: $914,922).
The consolidated entity has a bank guarantee facility with HSBC to provide guarantees to support project performance in favour of certain clients. The amount of these bank guarantees at 31 December 2025 is USD $763,716 (AUD $1,139,395) (30 June 2025: USD $763,716 (AUD $1,168,829)).
The consolidated entity has a $45 million insurance bond facility with Berkshire Hathaway Specialist Insurance Company and an additional $30 million insurance bond facility with Allianz Australia Insurance Limited. These facilities are utilised to provide retention and off site materials bonds in connection with certain projects. The amount of insurance bonds issued under the Berkshire Hathaway Specialist Insurance Company facility at 31 December 2025 is $11,109,554 (30 June 2025: $9,343,338). The amount of insurance bonds issued under the Allianz Australia Insurance Limited facility at 31 December 2025 is $13,001,273 (30 June 2025: $16,137,896).
GR Engineering Services Limited, the parent company, has provided guarantees and indemnities in relation to certain contracts entered into by its subsidiaries. Liability under these guarantees and indemnities is limited to the relevant subsidiaries' contracted limits of liability under the contracts.
9 DIVIDENDS
During the half year, the consolidated entity made the following dividend payments :
| Fully paid ordinary shares Dividend |
Cents per share $ Cents per share $ 12.00 20,091,340 10.00 16,700,847 31 December 2025 31 December 2024 |
|---|---|
A fully franked dividend of 12.0 cents per share has been declared for the six months ended 31 December 2025. The ex dividend date for the interim dividend is 2 March 2026, the record date for determining entitlements to the interim dividend is 3 March 2026 and the payment date for the interim dividend is 25 March 2026.
GR Engineering has a Dividend Reinvestment Plan (DRP) which enables all shareholders to elect to have all or some of their dividend reinvested in additional GR Engineering shares. The DRP is applicable to the FY26 interim dividend. The Directors have determined that a 2.5% discount will apply to the allocation price.
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GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
10 SEGMENT INFORMATION
Operating segments have been identified on the basis of internal reports of the consolidated entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segments and to assess their performance. The chief operating decision maker has been identified as the Managing Director. On a regular basis, the board receives financial information on a company basis similar to the financial statements presented in the financial report, to manage and allocate their resources.
The Managing Director has chosen to classify the operations of the consolidated entity by reference to presence in an industry. The segments identified on this basis are "mineral processing" and "oil and gas".
Segment revenues and results
The following table shows the revenue and results of the consolidated entity summarised under these segments.
Segment revenue
11
| Mineral processing Oil and gas Total revenue Segment profit before tax Mineral processing Oil and gas Total profit before tax Segment assets Mineral processing Oil and gas Corporate - financial assets Total assets FINANCIAL ASSETS Shares in listed entities Financial assets held at fair value through other comprehensive income |
31 December 31 December 2025 2024 $ $ 169,934,900 222,157,749 48,077,461 49,956,967 |
|---|---|
| 218,012,361 272,114,716 |
|
| 31 December 31 December 2025 2024 $ $ 20,409,013 27,421,811 4,563,604 4,383,334 |
|
| 24,972,617 31,805,145 |
|
| 31 December 30 June 2025 2025 $ $ 168,451,865 156,232,854 34,411,169 34,707,877 5,321,490 1,565,183 |
|
| 208,184,524 192,505,914 |
|
| 31 December 30 June 2025 2025 $ $ 5,321,490 1,565,183 |
Shares held in the listed entities are measured at fair value at the end of the reporting period.
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GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
13 KEY MANAGEMENT PERSONNEL
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2025
12 FINANCIAL INSTRUMENTS
Fair value of financial instruments
The fair values of financial assets and liabilities, together with their carrying amounts in the statement of financial position for the consolidated entity are as follows :
| for the consolidated entity are as follows : | |
|---|---|
| Assets Cash at bank Trade receivables Equity instruments Liabilities Trade payables Lease liabilities |
Carrying amount Fair value Carrying amount Fair value $ $ $ $ 86,509,898 86,509,898 70,959,192 70,959,192 53,532,772 53,532,772 54,583,212 54,583,212 5,321,490 5,321,490 1,565,183 1,565,183 31 December 2025 30 June 2025 |
| 145,364,160 145,364,160 127,107,587 127,107,587 |
|
| 57,975,147 57,975,147 46,374,284 46,374,284 7,388,983 7,388,983 9,176,900 9,176,900 |
|
| 65,364,130 65,364,130 55,551,184 55,551,184 |
The consolidated entity holds equity securities of $5,321,490 (30 June 2025: $1,565,183) which are classified as fair value hierarchy level 1, in which fair values are based on quoted prices in active markets. There have been no transfers of fair value hierarchy levels during the period.
These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the directors of the consolidated entity have elected to designate these investments in equity instruments as at fair value through other comprehensive income as they believe that recognising short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the consolidated entity’s strategy of holding these investments for long-term purposes and realising their performance potential in the long run.
Remuneration arrangements of key management personnel are disclosed in the annual financial report dated 30 June 2025.
14 EVENTS AFTER THE REPORTING DATE
On 17 February 2026, GRES was appointed as preferred contractor by Brightstar Resources Limited in relation to the engineering, procurement and construction (EPC) contract for the Laverton Processing Plant. The EPC contract is subject to the achievement of Final Investment Decision and finalisation of project funding, both of which are anticipated to be completed by late March 2026. The estimated contract value is $115 million. An early works agreement has been executed and ordering of long lead items and engineering works have commenced.
On 17 February 2026, Bellevue Gold Limited announced that GRES is expected to be appointed to design and construct a paste fill plant at the Bellevue Gold Project in Western Australia. The estimated contract value is $30 million. The ordering of long lead items has commenced.
A fully franked dividend of 12.0 cents per share has been declared for the six months ended 31 December 2025. The ex dividend date for the interim dividend is 2 March 2026, the record date for determining entitlements to the interim dividend is 3 March 2026 and the payment date for the interim dividend is 25 March 2026.
GR Engineering has a Dividend Reinvestment Plan (DRP) which enables all shareholders to elect to have all or some of their dividend reinvested in additional GR Engineering shares. The DRP is applicable to the FY26 interim dividend. The Directors have determined that a 2.5% discount will apply to the allocation price.
There has been no other matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial period, that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial years.
16
GR ENGINEERING SERVICES LIMITED HALF-YEAR FINANCIAL REPORT
DIRECTORS’ DECLARATION
The directors declare that:
(a) In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and
(b) In the directors’ opinion, the attached financial statements and notes thereto are in compliance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the consolidated entity.
Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.
On behalf of the Directors
______ Name: Tony Patrizi Managing Director Date: 20 February 2026
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Appendix 4D
Preliminary Half Year Report to the Australian Securities Exchange
GR Engineering Services Limited ABN 12 121 542 738
For the Half Year Ended 31 December 2025
(corresponding period half year ended 31 December 2024)
RESULTS FOR ANNOUNCEMENT TO THE MARKET
| RESULTS FOR ANNOUNCEMENT TO THE MARKET | ||
|---|---|---|
| Half year ended 31 Dec 2025 $’000 |
Percentage increase / (decrease) from 31 Dec 2024 |
|
| Revenue from ordinary activities | 218,012 | (19.88%) |
| Profit from ordinary activities after tax attributable to members | 17,235 | (21.03%) |
| Net profit for the period attributable to members | 17,235 | (21.03%) |
DIVIDENDS
| Half year ended 31 Dec 2025 (cents per share) |
Half year ended 31 Dec 2024 (cents per share) |
|
|---|---|---|
| Final dividend | 12.00 (fully franked) |
10.00 (fully franked) |
Subsequent to reporting date, a fully franked interim dividend was resolved to be paid of 12.0 cents per share, with an ex-dividend date of 2 March 2026 and a record date for determining entitlements to the interim dividend of 3 March 2026. The payment date of the interim dividend is 25 March 2026.
GR Engineering has a Dividend Reinvestment Plan (DRP) which enables all shareholders to elect to have all or some of their dividend reinvested in additional GR Engineering shares. The DRP is applicable to the FY26 interim dividend. The Directors have determined that a 2.5% discount will apply to the allocation price. The last date for lodgement of election notices to participate in the DRP for the 2026 interim dividend is 5pm AEST on 4 March 2026.
NET TANGIBLE ASSET BACKING
| NET TANGIBLE ASSET BACKING | ||
|---|---|---|
| Half year ended 31 Dec 2025 |
Half year ended 31 Dec 2024 |
|
| Net tangible asset backing per ordinary security * | 22.91 cents | 24.30 cents |
- Net tangible assets include right of use assets and lease liabilities.
The Half Year Financial Report dated 20 February 2026 forms part of and should be read in conjunction with this Preliminary Half Year Report (Appendix 4D). This report is based on accounts which have been reviewed. The review report is included in the Half Year Financial Report.