Construction giant John Holland has reported a staggering annual net loss of $117 million, more than triple the $34.3 million deficit recorded in the previous year.
The downturn is largely attributed to write-downs on two major infrastructure projects: Melbourne's West Gate Tunnel and the third stage of the Gold Coast Light Rail.
While the $10.2 billion West Gate Tunnel opened to traffic in mid-December, the project was plagued by unexpected expenses.
Industry speculation suggests that John Holland and its partner, CIMIC, may have shouldered approximately $1.5 billion in additional costs, though toll road operator Transurban maintains it will strictly assess any forthcoming claims.
Despite the heavy losses, the China Communications Construction Company-owned firm indicated that it would have achieved a pre-tax profit were it not for the specific impacts of these two projects.
Looking ahead, John Holland appears to be pivoting its strategy to avoid the pitfalls of fixed-price agreements.
The company’s order book has reached a record $26 billion, bolstered by a shift toward risk-sharing contracts designed to provide greater financial protection against unforeseen project hurdles.