Downer Edi Limited · ASX:DOW
Downer Edi — FY2025 Earnings Presentation
42 slides from Downer Edi's earnings presentation, Aug 21, 2025
Slide 1: FY25 Results Presentation
FY25 Results Presentation For the twelve months ended 30 June 2025 21 August 2025
Slide 2: Enabling communities to thrive
FY25 Results 2 We are a leading provider of Enabling communities integrated services across Australia and New Zealand, to thrive delivering and maintaining essential infrastructure that enables communities to thrive.
Slide 3: The Downer advantage
FY25 Results 3 The Downer advantage Diversified exposure to growth sectors building long-term value Sustainable AUS & NZ growth Energy Defence Population local industry opportunities transition spending growth revitalisation Sovereign prime contractor, Robust risk Market leadership Strong culture of
Slide 4: Steady progress in turnaround with further scope to unlock our potential
FY25 Results 4 Steady progress in turnaround with further scope to unlock our potential FY25 results demonstrate improved Performance Disciplined Consistent margin financial performance, portfolio culture reset revenue focus improvement simplification, and a maturing high- performance culture. Drive
Slide 5: FY25 results headline metrics
FY25 Results 5 1,2 Final dividend EBITA margin Delivering year-on-year improvement 14.1cps 100% franked 65% payout ratio 4.4% 7.3% EBITDA margin 3 Exceeded management target Payout target range increased minimum threshold of 4.2% to 60%-70% of U-NPATA Performance driven by higher quality order book,
Slide 6: Disciplined focus on quality of revenue
FY25 Results 6 Disciplined focus on quality of revenue Reflects strategic divestments and run-off of low margin non-core contracts 3.2% 4.4% ▪ Underlying revenue decrease impacted by divestments and assets FY24 ~120bps FY25 held for sale underlying 1 margin expansion underlying 1 ▪ Pro forma revenue
Slide 7: Transport
FY25 Results 7 Transport Road Services, Rail & Transit Systems, and Projects Operational and strategic highlights Supported by strong medium-term sector fundamentals ▪ Profitability uplift driven by improved contract delivery and overhead cost reductions 25 ▪ NZ Road Services momentum with increased
Slide 8: Transport ~$30bn
FY25 Results 8 Transport Attractive underlying opportunities and value drivers align with integrated value chain Portfolio fundamentals Sector fundamentals and key drivers ▪ Population and urban growth driving long-term road and rail infrastructure Cash Vertically requirements generation integrated
Slide 9: Energy & Utilities
FY25 Results 9 Energy & Utilities Telecommunications, Water, Power & Gas, and Industrial & Energy Operational and strategic highlights ▪ Turnaround focus on improved project delivery, enhanced governance, and Turnaround momentum with sector growth in Power and Water completion of underperforming con
Slide 10: Energy & Utilities ~$35bn
FY25 Results 10 Energy & Utilities Strong investment in essential energy and water networks supporting sector growth outlook Sector fundamentals and key drivers Portfolio fundamentals ▪ Market leader with geographic resource pools across AUS and NZ ▪ Essential services sector driven by demand growth
Slide 11: Facilities
FY25 Results 11 Facilities Defence, Health, Education, and Government Operational and strategic highlights Long-term contracts delivering essential services to ▪ Consistent performance contribution with growth in Government/IFM and Defence high quality customer base Estate Maintenance businesses 10
Slide 12: Facilities ~$45bn
FY25 Results 12 Facilities Continued opportunity in integrated facilities management solutions and partnering Portfolio fundamentals Sector fundamentals and key drivers ▪ Ageing population, population growth, housing shortages, digital transformation and sovereign capability needs Cash Capital ▪ Mar
Slide 13: $35.1bn work-in-hand + $4.5bn preferred
FY25 Results 13 13 $35.1bn work-in-hand + $4.5bn preferred Reflects deliberate ~90% Diversified ~90% services 11 Long-dated government reset to revenue quality related by industry 12 ▪ Diversified portfolio with long-term contracts Movement Profile at Jun-25 provides resilience across cycles and sup
Slide 14: ESG update
FY25 Results 14 ESG update Environmental 302.2 ktCO₂-e Zero Sustainability Absolute Scope 1 and 2 Significant Cat 4+ Linked Loan (SLL) Maintain our license to operate (Market-based) GHG emissions environmental Achieved the sustainability and focus on planned GHG 7.7% reduction on FY24: 327.2ktCO₂-e
Slide 15: Financial performance
FY25 Results 15 Financial performance
Slide 16: Margin uplift supported by strong cash conversion
FY25 Results 16 Margin uplift supported by strong cash conversion 9 9 Revenue EBITA Free cash flow Leverage Solid financial performance $10.6bn $459m $324m 0.9x supported by cash backed earnings and Ongoing focus on quality +19.8% on FY24 98% cash conversion 5 Improved from 2.0x capital discipline,
Slide 17: Reconciliation to statutory result
FY25 Results 17 Reconciliation to statutory result 1,2,9 Pro forma to statutory EBITA 500 15.5 Net EBITA contribution from (32.4) 400 divestments Net divestment completed in FY25 gain after (51.3) (10.7) and assets held for related program Costs incurred in sale at 30-Jun-25 costs $14.1m business re
Slide 18: Cash backed result
FY25 Results 18 Cash backed result Disciplined back to basics focus – contract management, cash collection, resolution of variations and claims Free cash flow of $323.9m, up 14.0% from $284.1m in FY24 1,500 562.5 1,250 (111.4) 20.4 Primarily 61.9 (147.6) maintenance Includes KD 1,000 capex in the lo
Slide 19: Group debt profile
FY25 Results 19 Group debt profile Debt maturity profile (A$'m) • Compliant with all financial covenants 16 • Weighted average debt maturity of 3.5 years (2.5 years at 31 Dec 24) 800 • Weighted average cost of debt of 5.4% in FY25 • Committed to maintaining Fitch BBB investment grade rating with Sta
Slide 20: Progress on capital allocation framework
FY25 Results 20 Progress on capital allocation framework Balance sheet Cash generated from ▪ Cash conversion exceeded >90% target Interest and tax business performance ▪ 8 FY25 final dividend franking uplift to 100% , targeting fully franked dividends in FY26 strength ▪ Improved free cash flow has d
Slide 21: Driving shareholder return
FY25 Results 21 Driving shareholder return Investment focus remains on productivity-enhancing and cost to serve initiatives with capacity for selective inorganic Dividend uplift 15 Share buy-back announced growth opportunities + 46% on FY24 total dividend Up to 230m $ ~5% of issued capital – Next tr
Slide 22: Priorities and outlook
FY25 Results 22 Priorities and outlook
Slide 23: Segment outlook
FY25 Results 23 Segment outlook Transport Energy & Utilities Facilities ▪ Subdued volumes in AUS Road ▪ Further growth in Power projects ▪ Well positioned sovereign Services and a healthy energy sector capability with Defence Base ▪ NZ Road Services outlook pipeline Services Transformation Property
Slide 24: Group outlook
FY25 Results 24 Group outlook Management target 3,26 EBITA margin This target is reflected in the LTI scorecard gates and is not We enter FY26 with good momentum, confidence in our market provided as guidance positions, and greater stability in our business following the completion of our portfolio
Slide 25: Supplementary information
FY25 Results 25 Supplementary information
Slide 26: Purpose, Pillars & Culture
FY25 Results 26 Purpose, Pillars & Culture OUR PURPOSE OUR PILLARS OUR CULTURE
Slide 27: Portfolio simplification reshapes Downer
FY25 Results 27 Portfolio simplification reshapes Downer Exit from mining and transport construction businesses, shifting toward specialist contractor Capital-light, diversified, Capital intensive, cyclical and disciplined risk management, exposed to market volatility sustainable improvement focus T
Slide 28: Portfolio simplification
FY25 Results 28 Portfolio simplification Good progress in Divested a combination of Finalising portfolio simplification reshaping portfolio underperforming, low margin and and applying capital non-core businesses management framework Rationale Financials $’m Sector Risk 18 18 Undervalued Cyclicality
Slide 29: Momentum in our turnaround
FY25 Results 29 Momentum in our turnaround Transformation update: on target Progress in FY25 Leadership ▪ Refreshed leadership: 75% of ELT and 26% of SLT promoted / new to Downer Driving a performance culture ▪ Launched 'The Downer Difference'; embedding a new high-performance culture & culture ▪ Pr
Slide 30: Investing to support next phase of growth
FY25 Results 30 Investing to support next phase of growth Better supporting our customers and front line teams through improved delivery and business support capabilities Doing it for our Performance Project delivery Modernising work Continuous customers culture excellence practices improvement Init
Slide 31: Group financials
FY25 Results 31 Group financials 1 9 Underlying Pro forma Statutory (excl. ISI) (excl. divestments and AHFS) ($'m) FY25 FY24 Change FY25 FY24 Change FY25 FY24 Change 20 Revenue 10,531.5 11,050.8 (4.7)% 10,885.7 11,967.6 (9.0)% 10,566.2 10,832.2 (2.5)% EBIT 283.2 180.5 56.9% 453.2 357.7 26.7% 437.7 3
Slide 32: Diversified portfolio across Transport, Facilities and Energy & Utilities
FY25 Results 32 Diversified portfolio across Facilities 27% Transport, Defence ▲ 8% FY25 segment Energy & Utilities Govt / ● Road EBITA 2,9 Transport 51% and Facilities $550.4m ● H&E Services 13% 28% Facilities 21% Energy & Utilities 22% ▲ Water FY25 Transport 7% revenue 51% 9,20 $10.6bn Energy & Ut
Slide 33: Queensland Train Manufacturing Program (QTMP) ramp up
FY25 Results 33 Queensland Train Manufacturing ▪ Largest investment in new rollingstock Downer will deliver: Program (QTMP) ramp up ▪ in QLD history ~$4.6bn project commenced in Jun-23 ▪ ▪ 65 six-car passenger trains Two training simulators with ~33% of revenue delivered to date ▪ Purpose built trai
Slide 34: Gross cost out exceeded upsized target
FY25 Results 34 7 Gross cost out exceeded upsized target >$100m target by end of FY25 Announced 27-Feb-23 1H24 $80m $20m 213m $175m target by end of FY25 $ Announced 14-Feb-24 Cumulative annualised gross cost FY24 $130m $45m out achieved since transformation program initiated in Feb-23. $200m target
Slide 35: Reconciliation of pro forma to statutory result
FY25 Results 35 Reconciliation of pro forma to statutory result Amortisation of Amortisation 2 Net finance 22 2 acquired EBIT of acquired EBITA Tax expense NPATA NPAT cost intangibles intangibles ($'m) (post-tax) Pro forma result 437.7 21.0 458.7 (82.1) (112.4) 264.2 (14.7) 249.5 Net divestment and
Slide 36: Reconciliation pro forma to underlying result
FY25 Results 36 Reconciliation pro forma to underlying result Pro forma, which excludes results of divested operations, FY25 FY24 provides additional information on the impact of the divestment program detailed below. Assets held Divestments 1 Assets held Divestments 1 Pro forma Underlying Pro forma
Slide 37: Group underlying financial performance
FY25 Results 37 Group underlying financial performance 1 1 Underlying performance ($'m) FY25 FY24 Change Underlying segment performance ($'m) FY25 FY24 Change 20 Total revenue 10,885.7 11,967.6 (9.0)% Transport 290.7 250.4 16.1% EBITDA 795.7 703.7 13.1% Energy & Utilities 121.7 85.7 42.0% 21 Depreci
Slide 38: Cash flow
FY25 Results 38 Cash flow Change in cash ($'m) FY25 FY24 Change Cash conversion ($'m) FY25 FY24 Change 1 Underlying EBIT 453.2 357.7 26.7% Total operating cash flow 562.5 544.1 3.4 % 21 Add: Depreciation and amortisation 342.5 346.0 (1.0)% Net capex (111.4) (91.8) (21.4) % 1 21,24 Underlying EBITDA
Slide 39: Reclassification of BU segments
FY25 Results 39 Reclassification of BU segments During the period, we reclassified the Industrial & Energy and the New Energy businesses from the Facilities segment into the Energy & Utilities (previously Utilities) segment to reflect the merged operations. As a result, the FY24 results for the Faci
Slide 40: Notes
FY25 Results 40 Notes 1. The underlying result is a non-IFRS measure that is used by 9. Pro forma reflects the statutory results adjusted for individually 18. The proceeds on disposal and annualised revenue are management to assess the performance of the business and significant items (ISI) (refer t
Slide 41: Important notice and disclaimer
FY25 Results 41 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 42: About Downer EDI Limited
1H25 Results 42 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 cap