Downer EDI Ltd (ASX:DOW): FY2026 Results Highlight Margin Improvement, Infrastructure Portfolio and Contract Growth

Sonal Goyal

22 September 2026 07:30 PM AEST

Downer EDI Ltd (ASX:DOW): FY2026 Results Highlight Margin Improvement, Infrastructure Portfolio and Contract Growth

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Highlights

Downer EDI Ltd (ASX:DOW) reported FY2026 underlying EBITA of $502.9 million, up 6.1% year on year.
Underlying NPATA increased 9.8% to $306.7 million, while statutory NPAT increased 51.2% to $225.4 million.
At the time of writing on 22 September 2026, Downer EDI Ltd (ASX:DOW) was trading at AUD 6.67, up 1.21% during today’s trading session.
Work-in-hand increased 10% to $38.5 billion, supported by $12.2 billion of new work secured during FY2026.

Downer EDI Ltd (ASX:DOW) provides integrated services across Australia and New Zealand, supporting infrastructure markets including roads, rail, defence, energy, water, telecommunications and government services. The company has released its FY2026 results, outlining Earnings performance, portfolio changes, contract wins and Capital management activities.

Downer operates across essential infrastructure sectors with approximately 22,800 employees. Its operations focus on delivering and maintaining infrastructure Assets for government and private sector customers.

Company Business

Downer provides services across Transport, Energy & Utilities, Facilities and other infrastructure-related markets. The company supports customers through project delivery, asset maintenance, operational services and infrastructure management.

The company’s portfolio includes road services, rail projects, power and energy networks, water infrastructure, defence services, telecommunications and facilities management.

During FY2026, Downer continued its portfolio simplification program, completing the sale of its 49% interest in Keolis Downer and disposal of its non-core New Zealand Cleaning business.

The company’s strategy focuses on improving Revenue quality, operational execution and exposure to sectors including energy transition, defence capability, data centres and transport infrastructure.

Recent Development

In August 2026, Downer released its financial results for the 12 months ended 30 June 2026. The company reported revenue of $9.7 billion, compared with $10.5 billion in FY2025.

Underlying EBITA increased 6.1% to $502.9 million, with EBITA Margin improving to 5.1% from 4.4%. Underlying NPATA increased 9.8% to $306.7 million, while statutory NPAT increased 51.2% to $225.4 million.

Underlying Earnings Per Share increased 14.1% to 42.9 cents per share. The company reported normalised cash conversion of 91.1% and reduced net Debt to EBITDA to 0.8 times from 0.9 times.

Downer declared a final Dividend of 16.3 cents per share, fully franked. Total FY2026 dividends increased 17.3% to 29.2 cents per share compared with 24.9 cents per share in FY2025.

Work-in-hand increased to $38.5 billion, reflecting $12.2 billion of new work secured during FY2026. Significant contract awards included Defence Property and Asset Services, water contracts, New Zealand transport maintenance contracts, Chevron Western Australia maintenance services and integrated facilities management contracts.

Financial Performance and Sector Context

Energy & Utilities pro forma EBITA increased 20.0% to $140.9 million, with margin expanding to 5.7%. Performance was supported by energy transition-related activities including transmission line and substation projects.

Transport pro forma EBITA increased 6.8% to $297.0 million, supported by contract execution improvements, Queensland Train Manufacturing Program delivery and stabilisation in Australian Road Services.

Facilities reported pro forma EBITA of $143.5 million, with performance affected by the transition of the Defence Base Services contract to the Property and Asset Services model.

The infrastructure services sector continues to be influenced by government investment, energy transition projects, transport infrastructure requirements, defence spending and digital infrastructure development.

Downer reported underlying Operating Cash Flow adjusted for interest and tax payments of $642 million. Free cash flow was $229 million, while Liquidity stood at approximately $1.8 billion at year end.

Risks to Consider

Key risks include changes in government spending, project execution requirements, labour availability, cost pressures, contract delivery conditions and changes in infrastructure demand.

Infrastructure service providers may also face risks related to contract mobilisation, project timing, regulatory requirements and operating conditions across different sectors.

What to Watch Next

Future developments may include delivery of secured contracts, progress across Energy & Utilities, Transport and Facilities operations, and execution against FY2027 priorities.

Downer expects FY2027 to include revenue and earnings growth with a larger contribution expected in the second half of the year, supported by contract timing, Water, Defence and Integrated Facilities Management activity.

Key Insights

Downer reported FY2026 underlying EBITA of $502.9 million, NPATA of $306.7 million and work-in-hand of $38.5 billion. The company continues to operate across essential infrastructure markets while focusing on portfolio quality, contract delivery and capital management.

FAQs

Q:What were Downer’s FY2026 earnings figures?

A:Downer reported underlying EBITA of $502.9 million and underlying NPATA of $306.7 million.

Q:What was Downer’s FY2026 revenue?

A:Downer reported revenue of $9.7 billion for FY2026.

Q:How much was Downer’s work-in-hand?

A:Downer reported work-in-hand of $38.5 billion.

Q:What dividend did Downer declare?

A:Downer declared a final dividend of 16.3 cents per share, fully franked.

Q:Which sectors does Downer operate in?

A:Downer operates across transport, energy, utilities, defence, telecommunications, facilities and government infrastructure sectors.

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