Duratec FY26 slides: margins expand to record on flat revenue

Duratec Limited, an Australian infrastructure contractor, reported its FY26 results on August 26, 2026, highlighting a strategic shift towards profitability over revenue growth. The company's FY26 revenue of $570.3 million remained flat compared to the previous year, while margins expanded to record levels through disciplined project selection, increased self-performed work, and strategic acquisitions.

Normalized EBITDA increased by 10.5% to $58.5 million, and EBITDA margin reached 10.3%, up from 9.2% in the prior year. Net profit after tax rose by 4.1% to $23.8 million, while earnings per share climbed to 9.25 cents from 9.10 cents. Revenue remained flat but gross profit increased 9.9% to $116.9 million, with a dramatic improvement in gross margin from 18.6% in FY25 to 20.5% in FY26.

Duratec's diversified portfolio across five key operating segments—including defence, building & facade, mining & industrial, energy, and emerging sectors—helped offset project timing impacts. The company achieved significant margin expansion through four acquisitions and two new platforms, while maintaining a dividend of 4.25 cents per share, fully franked, representing a 46% payout ratio.

Capital expenditure focused on plant and equipment to support self-perform capabilities, while shareholder returns totaled $9.4 million through dividends. The company's capital structure strengthened, with net assets increasing 26.2% to $93.8 million and total assets growing 20.2% to $302.1 million. Duratec's FY26 results demonstrate its ability to enhance profitability without revenue growth, positioning the company for accelerated growth in FY27.