Highlights

  • Consensus rating of Hold from 9 analysts: 4 Buy or equivalent, 5 Hold, 0 Sell or equivalent.
  • Mean price target of A$7.86 against a share price of A$6.87 on 8 October 2026, an implied upside of 14.4%.
  • Analyst targets range from A$7.20 to A$8.30.
  • Underlying EBITA was $502.9 million, up 6.1%, with the Margin up 70 basis points to 5.1%.

Downer EDI (ASX:DOW) carries a consensus analyst rating of Hold. Of the 9 analyst recommendations recorded, 4 are Buy or equivalent, 5 are Hold and 0 are Sell or equivalent. The mean price target is A$7.86, with targets ranging from A$7.20 to A$8.30, against a current share price of A$6.87 (8 October 2026). Downer EDI Limited is an integrated services provider operating across transport, utilities, facilities and related infrastructure markets in Australia and New Zealand.

Company name

Downer EDI

Ticker

(ASX:DOW)

Exchange

ASX (Australian Securities Exchange)

Current share price

A$6.87

Price date

8 October 2026

Number of analysts

9

Rating consensus

Hold

Consensus price target (mean)

A$7.86

Highest target

A$8.30

Lowest target

A$7.20

Implied upside/downside to mean target

Implied upside of 14.4%

Latest developments

Downer EDI (ASX:DOW) released its financial result for the 12 months ended 30 June 2026 (FY26) on 20 August 2026. Underlying EBITA was $502.9 million, up 6.1%, with the margin up 70 basis points to 5.1%. Underlying NPATA rose 9.8% to $306.7 million, in line with guidance, and statutory NPAT rose 51.2% to $225.4 million. Underlying EPS was 42.9 cents, up 14.1%. Statutory Revenue was $9,744.8 million, down 7.5%.

The total Dividend is 29.2 cents per share, up 17.3%, including a final dividend of 16.3 cents, up 15.6%, both fully franked. Normalised cash conversion was 91.1%, above the greater than 90% target, and net Debt to EBITDA fell to 0.8 times from 0.9 times. Over FY25 and FY26, Downer's average margin was 4.7%, above its management target of more than 4.5%. The company also began an on-market share buy-back of up to 5% of issued capital, expected to continue during FY27 subject to market conditions.

For FY27, on an underlying basis, Downer is targeting revenue and Earnings growth and EBITA margin improvement, with a larger than normal skew to the second half. It expects first-half FY27 revenue, earnings and EBITA margin to be lower than the prior corresponding period, with a return to growth in the second half, reflecting the timing and outcome of contract awards in Power Projects and Social Housing, the ramp-up of secured work in Water, Defence and Integrated Facilities Management, and improved volumes in Australian Road Services.

Risks and what to watch

Statutory revenue declined 7.5%. Downer expects first-half FY27 results to be lower than the prior corresponding period, with growth weighted to the second half, which depends on the timing of contract awards and the ramp-up of secured work. Underlying results exclude individually significant items, which relate principally to impairments, asset-related charges and transformation and restructuring costs. Normalised cash conversion was 91.1%, compared with 97.9% in FY25.

Next milestones

Items to watch include payment of the 16.3 cent final dividend, progress of the share buy-back, award of key Power Projects and Social Housing contracts, the first-half FY27 result, and the second-half return to growth that the company is targeting.