Downer shares drop 6% after $386 million loss

The news: Downer Group has posted a $385.7 million statutory net loss after tax, citing cost escalations and labour shortages among "challenging" market conditions faced by the infrastructure provider.

The numbers: Revenue was up 5.45% to $12.6 billion, but a pre-tax impairment of $549.6 million swung Downer's $323.4 million EBITA into the red. Downer offered an $0.08 dividend to shareholders, down from $0.12 last year. Its share price dropped almost 6% from yesterday's close to $4.12.

The context: While the loss was no surprise after Downer foreshadowed it last week, the group has already downgraded its guidance twice since December 2022. Along with difficult market conditions, Downer has faced multiple lawsuits over disclosure breaches related to maintenance contracts.