DOW +1%: The market has been looking for signs that Downer’s simplified, core-services strategy is translating into more consistent profitability – this result covered that off.
- Total revenue $4.92bn (-11% y/y)
- Underlying net profit $136.1mn (+7% y/y)
- Interim dividend per share $0.129 (vs. $0.108 y/y)
Downer’s large order book provides good earnings visibility, particularly with infrastructure, transport and defence-related spending remaining supportive across Australia and New Zealand.
FY guidance implies a stronger 2H and was set at $295-$315mn, DOW’s large order book keeps the trajectory moving the right way.
MM is cautiously bullish DOW ~$7.80
Add To Hit List
