Perenti lifts earnings, strengthens margins in FY26 half-year
Perenti has delivered a solid first-half result for the 2026 financial year (FY26), reporting improved margins and double-digit profit growth while tightening full-year guidance in response to currency movements.
The diversified mining services group posted revenue of $1.73 billion for the half year to December 31 2025, in line with the prior corresponding period, while underlying earnings before interest, taxes, and amortisation (EBITA) rose 3 per cent to $160.1 million.
Underlying net profit after tax increased 12 per cent to $91.8 million, with reported net profit after tax (NPAT) up 11 per cent to $70.5 million.
Earnings per share climbed 12 per cent to 9.8 cents, and EBITA margin strengthened to 9.3 per cent, up from 9.0 per cent in the first half of 2025 (1H25).
Perenti managing director and chief executive officer (CEO) Mark Norwell said the result reflected operational discipline and portfolio optimisation.
“Perenti has delivered another consistent first-half result and is positioned to deliver a strong FY26. As communicated previously, earnings will be weighted to the second half, consistent with prior periods,” he said.
“We are particularly pleased with the improvement in EBITA margin to 9.3 per cent compared to 9.0 per cent in 1H25, partially due to a successful demobilisation from an underperforming underground project in Botswana and a shift towards other higher-performing projects.”
The company’s transition away from the Botswana underground contract was partially offset by stronger-performing work across Australia, North America and Africa, contributing to margin expansion.
Normalised free cash flow improved to $33.1 million, compared with $30.6 million in the prior corresponding period.
On an unadjusted basis, free cash flow was negative due to the timing of debtor receipts.
Net debt reduced significantly to $385.3 million, with leverage improving to 0.6 times last twelve months’ EBITA.
The board declared an interim dividend of 3.25 cents per share, up 8 per cent on 1H25.
Looking ahead, Perenti reported $5.8 billion in work in hand and visibility on a further $18.6 billion pipeline of opportunities.
However, due to the recent uplift in the AUD to USD exchange rate, the company tightened the top end of its FY26 revenue and guidance, while improving its free cash flow outlook to greater than $170 million.