Downer EDI reports $225M FY26 statutory net profit

• Downer reported a statutory net profit of $225.4 million for the 2026 financial year, representing a 51.2% increase from the prior corresponding period.
• Following the results release, the company's shares fell 11.28% to $6.61 as investors focused on a softer near-term outlook for the first half of fiscal 2027.
• Management stated that the earnings performance was driven by a strategic focus on portfolio resilience, operational discipline, and higher-quality contracts.

Downer EDI (ASX:DOW) posted a statutory net profit of $225.4 million for fiscal 2026, up 51.2%.

Although overall revenue fell 7.5% to $9.74 billion due to portfolio simplification, the underlying EBITA margin rose 70 basis points to 5.1% to $502.9 million.

Underlying NPATA grew 9.8% to $306.7 million through disciplined cost control and project execution.

"Strong cash generation and disciplined capital allocation have enabled us to continue investing in the business while returning capital to shareholders through fully franked dividends and our share buyback programme," said Managing Director and CEO Peter Tompkins.

The company lifted its total dividend by 17.3% to 29.2 cents per share.

Following the announcement, the Downer share price was down at $6.53 on softer guidance.

Over two years, the average operating margin reached 4.7%, exceeding internal targets. The business continues simplifying its portfolio by exiting lower-margin work.