Perenti Limited (ASX:PRN) Reports Half Year Results
Financial Performance
Perenti Limited reported a 6% increase in revenue for the first half of FY25, reaching $1.73 billion, setting a new half-year record. Underlying EBIT(A) rose by 3% to $155 million, and NPAT(A) increased by 4% to $82 million. Statutory NPAT was $64 million, a decrease due to a $29 million non-cash gain on acquisition of DDH1 recognised in 1H24. Free cash flow stood at $(11.8) million as of 31 December 2024, before receiving late debtors in January 2025. Adjusted free cash flow was $30.6 million in 1H25, forecast to exceed $150 million for FY25.
Dividends and Share Buyback
The Company declared a 3.0c per share interim dividend, up from 2.0c in 1H24. Perenti continued its on-market buy back in 1H25, purchasing and cancelling approximately 1.3% of shares on issue.
Forward Guidance
Perenti reaffirmed its FY25 guidance, expecting revenue between $3.4 billion and $3.6 billion; EBIT(A) of $325 million to $345 million; leverage of between 0.6x to 0.7x; net capital expenditure of ~$330 million; and free cash flow greater than $150 million.
Executive Comments
Mark Norwell, Managing Director & CEO of Perenti, stated, “At Perenti we continue to demonstrate the strength and resilience of our business model to generate consistent cash-backed returns through fluctuations in commodity and market cycles. This resilience comes from establishing a global and diversified portfolio of mining services and our scale, particularly in underground mining and drilling. The strong free cash flow generated by Contract Mining and Drilling Services has allowed the reduction of gross debt during the period, ongoing share buybacks and the declaration of an increased interim dividend.”
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