Ventia Services reports $128M profit and lifts buyback
- Ventia's underlying net profit rose 7.4% to $128.2 million.
- Ventia shares climbed 7.18% following the financial update.
- Shift towards higher-margin work drove underlying EBITDA growth despite lower defence revenue.
Ventia Services Group (ASX:VNT) delivered a 7.4% increase in underlying net profit after tax and amortisation to $128.2 million for the half-year ended June 30.
The underlying earnings growth came despite total group revenue falling 4.7% to $2.9 billion due to a defence contract transition.
"The increase in dividend franking from 90% to 100% fully franked is sustainable and further enhances returns to shareholders and reflects the strength of our balance sheet and cash generation," said Ventia Group CEO Dean Banks.
The company upsized its on-market share buyback programme to $300 million while increasing its work in hand by 2.5% to $21.1 billion.
Following the announcement, the Ventia share price was up at $5.86.
The group's infrastructure services division offset the defence decline by expanding energy network capabilities and securing new contracts.
Ventia confirmed it remains on track to deliver its full-year guidance of 7% to 10% underlying net profit growth.
