Ventia Services Group shares dip on lower-than-expected first-half profit
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More news: Ventia Services Group has seen its share price slump after first-half NPATA missed market expectations, according to Visible Alpha.
At 11:00am AEST, shares in Ventia had slipped 3.5% to $5.02.
RBC Capital Markets analyst Nicholas Daish also flagged that first-half underlying NPATA also missed consensus expectations by 3% and said “result quality is ok”.
Daish flagged “cashflow conversion of 93% (gross operating cash flow/EBITDA), underlying tax rate of 30% and positive $17.5 million after tax abnormal adjustment made associated with the Toowoomba Second Range Crossing novation – previously announced at the FY24 result”.
Ventia also increased its ongoing on-market share buyback by $50 million to $150 million. Daish flagged that the company had completed 82% of the existing $100 million buyback announced in February 2025.
Ventia Services Group posts 12% gain in first-half profit
The news: Ventia Services Group has delivered an 11.9% increase in first-half NPATA for 2025, as the infrastructure services firm secured record work in hand and hit a contract renewal rate of 95%.
Full-year guidance for underlying NPATA has been set at between a 10-12% increase on FY24 statutory NPATA.
The numbers: Ventia’s first-half NPATA came in at $119.4 million, compared to $106.7 million in the previous year.
EBITDA rose 2.8% to $252.6 million, compared to $245.8 million in the first half of 2024, despite Revenue falling 1.5% to $3 billion.
Work in hand hit a record value of $20.6 billion, up 19.4%, as the contract renewal rate by value over the last 12 months came in at 95%.
An interim dividend of 10.71 cents per share franked at 90% was declared, better than 9.35 cents franked at 80% in the previous comparable period.
The market consensus estimate, according to Visible Alpha, for NPATA was $120.6 million. It was more than $3.24 billion for revenue, $264.4 million for EBITDA and 10.71 cents per share for the interim dividend.
What they said: “The first-half performance was underpinned by robust EBITDA growth in Infrastructure Services, as contracts won in 2024 begin to mature and we strategically focus on more work in the Energy, Water and Renewable end markets," Ventia managing director and group CEO Dean Banks said.
"Consistent revenue from Telecommunications also supported our first half performance, where several new contract awards are now mobilising. We also extended our Defence Base Services agreement through to January 2026.”
