Downer Edi Limited · ASX:DOW
Downer Edi — H1 FY2026 Earnings Presentation
49 slides from Downer Edi's earnings presentation, Feb 19, 2026
Slide 1: 1H26 Results Presentation
1H26 Results Presentation For the six months ended 31 December 2025 19 February 2026
Slide 2: The Downer advantage - enabling communities to thrive
1H26 Results 2 The Downer advantage - enabling communities to thrive Diversified exposure to growth sectors building long-term value Sustainable Energy Defence Population ANZ local industry growth growth transition spending revitalisation opportunities Sovereign prime contractor, Robust risk managem
Slide 3: Key messages
1H26 Results 3 Key messages On track to exceed management target1 of >4.5% EBITA margin averaged across FY25/FY26 Delivering bottom line Quality of revenue Strategic wins growing At our Investor Day in Nov-25, we driving margin growth work-in-hand set out a clear transition focused improvement on su
Slide 4: Building performance momentum
1H26 Results 4 Building performance momentum EBITA margin2,3 For the six months ended 31 December 2025 4.6% 7.3% EBITDA margin On track to exceed management target1 of >4.5% averaged Statutory NPAT NPATA2,3 EBITA2,3 Interim dividend across FY25 and FY26 $ 98.0m $ 136.1m + 11.2% on 1H25 12.9cps 1H26
Slide 5: Focus on revenue quality builds platform for sustainable growth
1H26 Results 5 Focus on revenue quality builds platform for sustainable growth FY30 management ambition 4% to 5% revenue CAGR8 from FY26 5,506 Underlying revenue declined 3.6% on 1H25 pro forma (pro forma revenue declined 4.9%) Revenue from divested 401 broadly aligned with our expectations business
Slide 6: Work-in-hand increased 8.9% to $38.2bn
1H26 Results 6 Work-in-hand increased 8.9% to $38.2bn Robust Diversification Long-dated Diversified ~90% ~90% order book driving resilience contracts by industry government related services 10 ▪ WIH growth: Energy & Utilities +21.6%, Facilities Profile at Dec-25 +20.2% and Transport -3.5% $38.2bn $’
Slide 7: Margin improvement across all segments
1H26 Results 7 Margin improvement across all segments FY30 management ambition Towards 6% EBITA margin12 3.7% 4.6% ~90bps margin expansion 1H25 1H26 underlying underlying EBITA margin2 EBITA margin2 227.1 EBITA from divested 6.7 4.3 8.8 7.4 businesses 204.3 14.3 EBITA from divested businesses 18.7 2
Slide 8: Transport
1H26 Results 8 Transport Road Services, Rail & Transit Systems, and Projects Supported by strong medium-term sector fundamentals Operational and strategic highlights Work-in-hand11 Revenue9 $2.5bn $16.5bn ▪ Appointment of new Transport & Infrastructure COO Doug Moss, commencing Apr-26 ▪ Profitabilit
Slide 9: Transport ~$30bn
1H26 Results 9 Transport Attractive underlying opportunities and value drivers align with integrated value chain FY30 management ambition Portfolio fundamentals 3%–4% Towards 6.5% Cash Vertically generation integrated revenue CAGR8 EBITA margin12 from FY26 Strategically Balanced risk positioned asse
Slide 10: Energy & Utilities
10 2025 1H26 Results Investor Day 10 Energy & Utilities Power & Gas, Water, Energy & Industrial, Telecommunications Secured work supporting participation in upcoming energy and water opportunities Operational and strategic highlights Revenue9 Work-in-hand11 $1.3bn $6.2bn ▪ Uplift in profitability dr
Slide 11: Energy & Utilities ~$35bn
11 2025 1H26 Results Investor Day 11 Energy & Utilities Strong investment in essential networks supporting sector growth outlook FY30 management ambition Portfolio fundamentals 8%–9% Towards 7% Cash Capital revenue CAGR8 EBITA margin12 generation light from FY26 Exposure to high Balanced risk growth
Slide 12: Facilities
1H26 Results 12 Facilities Defence, Health, Education, and Government Long-term contracts delivering essential services to high quality customer base Operational and strategic highlights Revenue9 Work-in-hand11 ▪ $1.1bn $15.5bn 520.2% Continued growth in Government/IFM and solid volumes in Defence E
Slide 13: Facilities ~$45bn
1H26 Results 13 Facilities Continued opportunity for integrated facilities management solutions and partnering FY30 management ambition Portfolio fundamentals 4%–5% Towards 6.5% Cash Capital generation light revenue CAGR8 EBITA margin12 from FY26 Exposure to high Long term secured growth sectors con
Slide 14: Improving shareholder return
1H26 Results 14 Improving shareholder return Total shareholder return Share buy-back15 Dividend and outperformance14 signalling confidence franking uplift 131% 260m 19% 115% dividend + TSR outperformance since 1-Mar-23 ~$ + on 1H25 dividend + growth in 2 years up to ~5% of issued capital 200% +168%
Slide 15: ESG focus areas and performance
1H26 Results 15 ESG focus areas and performance Safety Climate change People Sustainable Governance & and environment procurement ethics ▪ 145.9 ktCO2-e ▪ Continued to enhance 2.26 TRIFR16 Absolute Scope 1 and 2 Since 1-Jul-25: license to operate 1H25: 2.24 (Market-based) emissions ▪ AUD$20m spent w
Slide 16: Financial performance
1H26 Results 16 Financial performance
Slide 17: Margin uplift supported by strong cash conversion
1H26 Results 17 Margin uplift supported by strong cash conversion Solid financial performance supported by margin improvement, cash backed earnings and capital discipline, positioning the balance sheet to pursue strategic growth opportunities and cost to serve efficiencies Adjusted operating Revenue
Slide 18: Reconciliation to statutory result
1H26 Results 18 Reconciliation to statutory result Pro forma to statutory EBITA3 250 7.4 (5.9) 200 Net EBITA (16.1) contribution (6.3) Gain on disposal from of Keolis Downer (13.9) divestments Costs incurred completed in Gain on disposal in the ACCC 150 1H26 of E&U customer transformation proceeding
Slide 19: Cash backed result
1H26 Results 19 Cash backed result Disciplined back to basics focus – contract management, cash collection, resolution of variations and claims 1,250 Free cash flow of $105.2m 226.8 1,000 (52.5) (63.0) (6.1) 76.9 Primarily (99.3) maintenance Reduced 750 capex in the (64.4) 90.5% due to normalised Tr
Slide 20: Balance sheet positioned to support transition to growth
1H26 Results 20 Balance sheet positioned to support transition to growth ▪ Maintain Fitch BBB investment grade rating Leverage Interest coverage ratio ▪ Compliant with / buffer to covenants on key credit metrics ▪ Weighted average cost of debt of 5.4% in 1H26 0.8x 9.2x ▪ ▪ Net interest expense lower
Slide 21: Capacity to invest for growth
1H26 Results 21 Capacity to invest for growth Portfolio and capital return choices Indicative capital uses19,20 Organic Growth capex Gross capital ▪ Disciplined / aligned with ▪ Aligned with opportunity 1H26: $56m FY26: ~$170m market outlook expenditure20 pipeline ▪ Target enhanced efficiency ▪ Tran
Slide 22: Priorities and outlook
CHANGE IMAGE Priorities and outlook
Slide 23: Management ambition – balanced scorecard
1H26 Results 23 Management ambition – balanced scorecard FY28 FY30 9% 4%-5% Towards 6% >90% underlying EPS CAGR22 revenue CAGR8 EBITA margin12 average from FY25 from FY26 cash conversion reflecting the top end of LTI scorecard Management ambition - balanced scorecard is not provided as guidance Foun
Slide 24: Group outlook
1H26 Results 24 Group outlook Management target EBITA margin1 This target is reflected in the 1H26 performance was in line with our expectations. LTI scorecard gates and is not provided as guidance 4.5% Our focus continues to be building a high quality order book with adherence to our risk guard rai
Slide 25: Supplementary information
1H26 Results 25 Supplementary information
Slide 26: Purpose, pillars & culture
1H26 Results 26 Purpose, pillars & culture OUR PURPOSE OUR PILLARS OUR CULTURE
Slide 27: Where to next: sustainable growth
1H26 Results 27 Where to next: sustainable growth Responsibly growing our top line to GDP+ growth Cyclical recovery ▪ AU Roads Water ▪ NZ economy Defence spend Energy transition Population growth 90% of WIH cost indexation26
Slide 28: Where to next: ambition beyond 4.5%
1H26 Results 28 Where to next: ambition beyond 4.5% The areas of opportunity for the next phase of improvement Towards 6% EBITA margin Cost in FY3012 leadership Contract margin uplift Business mix Risk guardrails 4.4% EBITA margin in FY25
Slide 29: Contract margin uplift opportunity
1H26 Results 29 Contract margin uplift opportunity Drivers of contract margin opportunity / risk Contract margin growth Long-term Business Delivery Cost Cyclical Cost potential contract mix excellence leadership recovery indexation renewals Transport Moderate Energy & Utilities High Facilities Stead
Slide 30: Investment in delivery excellence
1H26 Results 30 Investment in delivery excellence Strengthening workforce capability to enhance current and future market competitiveness Core contracting Project Modernise Back to basics controls technology disciplines Frontline Capability learning & Right people, right roles, right time assessment
Slide 31: Cost leadership
1H26 Results 31 Cost leadership ~$213m cost savings Technology Workforce Cumulative annualised gross cost out delivered from simplification management the transformation program from Feb-23 to Jun-25 Further efficiency opportunities Internal analysis & benchmarking of overheads and Cost Shared Servi
Slide 32: Investment to support growth and drive margin improvement
1H26 Results 32 Investment to support growth and drive margin improvement FY26 FY26 FY27 - FY28 FY29+ ~$60m $ Project management indicative $ Fleet optimisation FY26 investment20,24 $$ Work management $$ Shared Services optimisation $$$ Business support optimisation $$$ My Time My Pay $ ERP simplifi
Slide 33: Queensland Train Manufacturing Program (QTMP)
1H26 Results 33 Queensland Train Manufacturing Program (QTMP) ▪ ▪ Largest investment in new rollingstock in QLD history ~$4.6bn project commenced in Jun-23 ▪ ~41% of revenue delivered to date ▪ First train prototype nearing completion with testing to commence in late 2026/early 2027 ▪ Construction o
Slide 34: Portfolio simplification has reshaped Downer
1H26 Results 34 Portfolio simplification has reshaped Downer Capital intensive, cyclical and Capital-light, balanced, disciplined risk exposed to market volatility management, sustainable improvement focus Transition to a Trans-Tasman leadership Rationalisation and services-led model portfolio simpl
Slide 35: Recent divestments
1H26 Results 35 Recent divestments Divested a combination of underperforming, Divestment cycle largely completed; low-margin and non-core businesses applying capital management framework Rationale Undervalued Sector exposure Risk management Cyclicality Non-core Divestments - FY23 to 1H26 Repurpose I
Slide 36: High quality balanced portfolio across sectors, geographies and contract types
1H26 Results 36 High quality balanced portfolio ▲ Defence 9% Facilities across sectors, ● Road Services 29% 1H26 geographies and 26% Govt / segment Transport H&E EBITA 49% contract types 14% Facilities 23% $264.4m3,9 1H26 Energy & Utilities revenue Transport 22% 51% Water ▲ 7% $4.9bn9,17 Energy & Ut
Slide 37: Balanced portfolio with disciplined risk-return management
1H26 Results 37 Balanced portfolio with disciplined risk-return management Contract commercial models - Dec-25 WIH 8% 6% 58% 18% 10% Cost-plus Alliance / Multi-year O&M Schedule Lump sum target cost with adjustment of rates mechanism Indicative risk exposure ▪ Order book reflects a balanced mix of c
Slide 38: Managing cost escalation through embedded mechanisms
1H26 Results 38 Managing cost escalation through embedded mechanisms 1% Contract escalation 26 8% Services ~90% of WIH26 ▪ Predominantly long-term contracts structured to pass through 2% inflationary pressures Services ▪ 91% include embedded price escalation mechanisms 8% ▪ Majority escalate via CPI
Slide 39: Group financials
1H26 Results 39 Group financials Underlying² Pro forma⁹ Statutory (excl. ISI) (excl. divestments and AHFS) ($'m) 1H26 1H25 Change 1H26 1H25 Change 1H26 1H25 Change Revenue¹⁷ 4,860.7 5,221.2 (6.9)% 4,918.8 5,505.7 (10.7)% 4,855.8 5,104.6 (4.9)% EBIT 175.5 133.4 31.6% 217.7 194.1 12.2% 210.3 175.4 19.
Slide 40: Reconciliation of pro forma to statutory result
1H26 Results 40 Reconciliation of pro forma to statutory result Amortisation Amortisation Net finance of acquired EBIT of acquired EBITA³ Tax expense²⁸ NPATA³ NPAT cost intangibles intangibles ($'m) (post-tax) Pro forma⁹ result 210.3 9.4 219.7 (34.2) (55.5) 130.0 (6.6) 123.4 Net divestment and asset
Slide 41: Reconciliation of pro forma to underlying result
1H26 Results 41 Reconciliation of pro forma to underlying result 1H26 1H25 Pro forma⁹ Divestments Underlying² Pro forma⁹ Divestments Underlying² Pro forma excludes the contribution of divested operations ($'m) impact impact²⁹ Transport Divestment Segment Completed Revenue 2,453.9 4.0 2,457.9 2,555.5
Slide 42: Group underlying financial performance
1H26 Results 42 Group underlying financial performance Underlying² performance ($'m) 1H26 1H25 Change Underlying² segment performance ($'m) 1H26 1H25 Change Total revenue¹⁷ 4,918.8 5,505.7 (10.7)% Transport 132.6 128.8 3.0% EBITDA²⁷ 359.5 357.6 0.5% Energy & Utilities 61.8 52.6 17.5% Depreciation an
Slide 43: Pro forma comparatives
1H26 Results 43 Pro forma comparatives The comparative 1H25 and 1H24 period has been amended to remove the contribution of businesses divested. Impact of FY25 and 1H26 1H25 Reconciliation ($'m) 1H25 Reported 1H25 Restated²⁹ Divestments and AHFS²⁹ Segment Revenue EBITA Revenue EBITA Revenue EBITA Tra
Slide 44: Capital allocation framework
1H26 Results 44 Capital allocation framework Cash generated from business Interest and tax ▪ Normalised cash conversion exceeded >90% target performance ▪ Improved underlying business performance driving higher tax payments Balance sheet strength ▪ Lower interest payments from reduced drawn debt Ope
Slide 45: Debt profile
1H26 Results 45 Debt profile Debt facilities $'m Jun-24 Dec-24 Jun-25 Dec-25 Total limit 2,572.1 2,557.8 2,706.4 2,546.0 Drawn 1,307.1 1,082.8 1,081.4 921.0 Available 1,265.0 1,475.0 1,625.0 1,625.0 Cash 837.6 639.8 833.8 683.4 Total liquidity 2,102.6 2,114.8 2,458.8 2,308.4 Net debt³⁰ 469.5 447.5 2
Slide 46: Cash flow
1H26 Results 46 Cash flow Change in cash ($'m) 1H26 1H25 Change Cash conversion ($'m) 1H26 1H25 Change Underlying² EBIT 217.7 194.1 12.2% Total operating cash flow 226.8 220.1 3.0 % Add: Depreciation and amortisation 141.8 163.5 (13.3)% Net capex (52.5) (44.7) (17.4) % Underlying² EBITDA²⁷ 359.5 357
Slide 47: Notes
Notes 1H26 Results 47 1 The management target of >4.5% average EBITA margin across FY25 and FY26 is incorporated into Downer’s 16 LTIFR: Lost Time Injury Frequency Rate/million hours worked, TRIFR: Total Recordable Injury Frequency Rate/ long-term incentive plan and is not provided as guidance. Any
Slide 48: Important notice and disclaimer
1H26 Results 48 Important notice and disclaimer The information in this presentation has been prepared by Downer EDI The information contained in this presentation may include Certain financial data included in this presentation is ‘non-IFRS Limited ABN 97 003 872 848 (Downer or the Company) and inc
Slide 49: Downer EDI Limited (Downer) is a leading provider of integrated services
Downer EDI Limited (Downer) is a leading provider of integrated services across Australia and New Zealand, delivering and maintaining essential infrastructure that enables communities to thrive. The demand for our services is shaped by investment in the energy transition, defence capability, governm