Highlights

  • Perenti shares fell 13.65% to AUD 2.44 following the half‑year results release.
  • 1H FY26 underlying NPAT(A) rose 12% to AUD 91.8 million, with tightened guidance for FY26.
  • FY26 revenue and EBIT(A) guidance was narrowed due to currency impacts, influencing investor sentiment.

Shares of Perenti Ltd (ASX:PRN) declined 13.65% to AUD 2.44 by 3:00 pm on 23 February 2026. The drop came as the company released its half‑year results for the period ended 31 December 2025, including tighter full‑year guidance influenced by exchange rate movements and other financial metrics that weighed on investor sentiment.

Share Price Reaction to 1H FY26 Update

Perenti’s share price slid sharply during the session, marking one of its largest single‑day declines in recent months. Despite the pullback, the stock remains up around 109.91% over the past year, indicating significant longer‑term appreciation.

Market participants appeared to focus on revised guidance and currency‑related adjustments, leading to the sell‑off even though several earnings metrics showed year‑on‑year improvements.

Results Show Earnings Growth but Guidance Tightened

In its 1H FY26 results, Perenti reported revenue of AUD 1.73 billion, matching the prior corresponding period. Underlying EBIT(A) increased by 3% to AUD 160.1 million, while underlying NPAT(A) rose 12% to AUD 91.8 million. Statutory NPAT also increased 11% to AUD 70.5 million.

Earnings per share grew to 9.8 cents, up 12% from the previous half‑year, and underlying free cash flow was reported at AUD 33.1 million. Net debt decreased to AUD 385.3 million, resulting in a leverage ratio of 0.6x.

Financial Highlights – 1H FY26

  • Revenue: AUD 1.73 billion
  • Underlying EBIT(A): AUD 160.1 million (+3%)
  • Underlying NPAT(A): AUD 91.8 million (+12%)
  • Statutory NPAT: AUD 70.5 million (+11%)
  • Underlying EPS: 9.8 cents (+12%)
  • Normalised free cash flow: AUD 33.1 million
  • Net debt: AUD 385.3 million
  • Leverage: 0.6x

Despite these gains, investor interest shifted to the company’s updated FY26 outlook.

FY26 Guidance Adjustments and Currency Impact

Perenti tightened its FY26 guidance due to currency fluctuations, particularly the rising AUD:USD exchange rate, which can affect offshore earnings when translated into Australian dollars.

The updated guidance ranges were provided as:

  • Revenue: AUD 3.45 billion to AUD 3.55 billion (narrowed at the top end)
  • EBIT(A): AUD 335 million to AUD 350 million (reduced range)
  • Net capital expenditure: circa AUD 325 million
  • Free cash flow: greater than AUD 170 million

The trimming of guidance targets, especially at the upper end, may have reduced investor confidence in near‑term growth prospects, even as underlying performance remained positive.

Dividend and Balance Sheet Positions

Perenti declared an interim dividend of 3.25 cents per share, up 8.3% compared to the prior period, signalling ongoing returns to shareholders.

The company’s balance sheet showed net debt reduced from prior periods, and leverage also improved, supporting its capital management strategy.

Perenti’s share price decline on 23 February 2026 appears tied to investor reaction to tightened FY26 guidance and currency‑related adjustments, despite underlying improvements in earnings and cash flow metrics. How the company executes in the second half will be an important factor for investor confidence going forward.

Frequently Asked Questions (F&Q)

  1. Why did Perenti shares fall more than 13% today?
    Shares declined as the company tightened its FY26 guidance due to the impact of the rising AUD:USD exchange rate, prompting investor reassessment of near‑term growth prospects.
  2. Did Perenti report higher earnings in 1H FY26?
    Yes. Underlying NPAT(A) increased 12% to AUD 91.8 million and underlying EPS grew to 9.8 cents.
  3. What guidance changes did Perenti make for FY26?
    Perenti narrowed its FY26 guidance ranges for revenue and EBIT(A), reflecting the effect of currency fluctuations and business conditions.