Downer EDI shares rise after half-year results
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More news: Downer’s shares jumped 9.98% to $4.74 during early trading on the ASX, following its 5.9% lift in half-year profit.
UBS analysts said while utilities were returning to profitability ahead of expectations, Downer’s underlying first half EBITA margin of 2.6% was “still some way off” the FY25 4.5% target.
Downer jumps after lift in half-year profit, outlook
The news: Engineering and services contractor Downer EDI expects a stronger second half after lifting half-year profits despite a slight decline in revenue.
The numbers: Statutory net profit for the six months to December 2023 was up 5.9% to $72.1 million. Revenue for the period was down 2.2% to $5.58 billion. It will pay an interim dividend of 6 cents a share, up 1 cent from a year ago.
Shares in the company jumped nearly 8% to $4.65 in early trading on the ASX, following its earnings results.
The context: Downer said there had been growth in the transport and utilities segments but this was offset by the divestment of the Australian transport projects and asset and development services businesses.
It expects an improvement in the earnings margin during the second half through a combination of cost cuts and improving operational performance.
The group had posted a heavy loss in FY23 due to write-downs related to its 2020 acquisition of Spotless.
The source: ASX announcement
