Perenti Limited

Perenti reported first-half FY26 revenue of $1.73 billion, flat versus the prior corresponding period. EBITA increased 3% to a record $160 million, with margin improving to 9.3% from 9.0% in 1H FY25. Underlying NPATA was $92 million, up 12%, and underlying EPS rose 12% to $0.098 per share. Normalized free cash flow was $33.1 million, up 8% on a like-for-like basis after adjusting for delayed debtor receipts, and net leverage fell to 0.6x from 0.9x. For FY26, management lifted free cash flow guidance to greater than $170 million and reduced capex guidance to $325 million; they also said revenue and EBITA guidance tops were tempered by the stronger Australian dollar. They reiterated FY26 cash flow and earnings will be second-half weighted, with cash conversion expected to be in line with historical averages of greater than 95% for the full year.

Mark Norwell said the business is delivering as expected and remains well positioned for strong earnings and cash flow, emphasizing the strength of Perenti’s diversified portfolio and improving earnings quality. He framed the company’s outlook around contract mining momentum, especially in North America and Australia, and pointed to Fourmile, Goldrush, Red Chris and other pipeline items as evidence of growing long-term opportunity. His tone was confident but disciplined, stressing that projects must meet risk and return hurdles rather than just add revenue.

Mike Ellis highlighted a strong first half with revenue of $1.73 billion, EBITA of $160 million, EBITA margin of 9.3%, and underlying NPATA of $92 million. He noted depreciation declined to $157 million from $168 million, interest expense fell 20% to $28 million thanks to debt repayment, and the effective tax rate was 30.2% in the half, with 32% still expected for FY26. Cash flow was impacted by timing, including $50.3 million of overdue debtor receipts in January, but normalized free cash flow was $33.1 million and cash conversion was 77%; he also said liquidity remained very strong at $818 million, including $275 million cash and $543 million of undrawn facilities.

The main analyst question focused on contract mining opportunities and renewals over the next 12 to 18 months. Management said the pipeline is very strong and heavily weighted to North America and Australia, with some good opportunities in Africa as well. They specifically cited Fourmile in Nevada, potential expansion at Goldrush, Red Chris expansion discussions, and other North American and Australian tenders, while also saying drilling services should have a strong outlook into FY27.