Ventia Services Group Limited (ASX:VNT) Announces FY25 Guidance and $100 Million Share Buyback
Financial Performance
Ventia Services Group Limited reported a full-year NPATA of $227.9 million, marking a 12.8% increase. Revenue reached $6.1 billion, up 7.6%, while EBITDA grew by 7.3% to $499.3 million with an 8.2% margin. The company maintained an operating cash flow conversion of 91.4% and reported earnings per share growth of 16.0%.
Operational Achievements
The Work in Hand increased by 6.7% to $19.4 billion. In the D&SI sector, revenue rose by 9.4% with significant contract wins, including $564 million Defence Firefighting Services and $570 million Homes NSW contracts. Telecommunications revenue surged by 14.6%, driven by major projects like the $2 billion Telstra strategic agreement.
Capital Management
Ventia announced an on-market share buyback of up to $100 million, supported by a 91.4% cash conversion and improved credit metrics. The final dividend of 10.63 cents per share, franked at 80%, brings the total dividend to 19.98 cents, payable on 7 April 2025.
Executive Comments
Managing Director and Group CEO Dean Banks stated, “Ventia’s strategy to redefine service excellence has strengthened existing customer relationships while securing new ones. We are pleased to announce our FY25 underlying NPATA guidance of 7-10% growth compared to FY24.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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