Highlights

  • Perenti delivered record underlying operating Earnings in FY26 despite relatively unchanged group revenue.
  • Improved operating margins and cash generation contributed to a reduction in financial leverage.
  • The company progressed portfolio divestments alongside changes in executive leadership.
  • FY27 guidance reflects continued project activity, Capital Expenditure and operational development.

Perenti (ASX:PRN), an Australian Mining services group providing contract mining, drilling, equipment and technology services, reported record underlying earnings for FY26, ended 30 June 2026. The company achieved higher operating margins, generated Cash Flow and reduced financial Leverage despite relatively stable revenue. Its latest results also reflect an ongoing portfolio transition and the appointment of Vanessa Torres as Managing Director and Chief Executive Officer.

FY26 Earnings Increase Despite Stable Revenue

Perenti reported FY26 underlying Revenue of AUD 3,463 million, representing a marginal decline of approximately 1% compared with FY25.

Underlying earnings before interest, tax and Amortisation (EBIT(A)) increased 2% to AUD 340 million, marking a record annual result.

The underlying EBIT(A) margin increased to 9.8% from 9.6% in FY25, reflecting changes in operational performance and revenue composition.

Underlying net profit after tax and amortisation (NPAT(A)) increased 8% to AUD 192 million, while underlying Earnings Per Share rose 7% to 20.5 cents.

However, statutory net profit after tax stood at AUD 44 million, reflecting Impairment charges and losses associated with portfolio restructuring.

These results demonstrate the difference between underlying operating profitability and statutory earnings during a period of Business adjustments.

Cash Generation Supports Debt Reduction

Perenti (ASX:PRN) generated adjusted free cash flow of approximately AUD 182 million in FY26, exceeding its guidance of AUD 170 million.

Net debt declined to approximately AUD 271 million from AUD 305 million in FY25, while the Leverage Ratio decreased to 0.4 times.

The company also reported gearing of 12.8%, reflecting lower debt exposure relative to its capital base.

Following its financial performance, Perenti declared a final Dividend of 4.50 cents per share, bringing total FY26 dividends to 7.75 cents per share, approximately 7% above FY25.

The company also reinstated its on-market share buyback programme as part of its capital management activities.

Reduced leverage provides additional financial flexibility for fleet investment, project expenditure and potential business development opportunities.

Contract Mining Remains the Principal Revenue Contributor

Contract Mining continued to account for the largest proportion of Perenti's revenue during FY26.

The division generated approximately AUD 2,431 million in revenue, representing a decline of 4% from FY25. However, underlying EBIT(A) increased 2% to AUD 291 million.

The division's Operating Margin reached approximately 12%, reflecting improved profitability despite lower revenue.

Drilling Services reported revenue of approximately AUD 843 million, increasing 8%, while underlying EBIT(A) reached AUD 85 million.

Mining and Technology Services contributed approximately AUD 190 million in revenue and AUD 11 million in underlying EBIT(A).

Perenti's earnings remain influenced by contract utilisation, labour productivity, equipment availability and project operating costs.

Portfolio Restructuring and Leadership Transition

Perenti (ASX:PRN) continued reviewing its business portfolio to prioritise operations aligned with its long-term capital allocation objectives.

In August 2026, the company entered an agreement to divest BTP Group for total consideration of AUD 100 million.

The transaction comprises an initial payment of AUD 80 million upon completion and a deferred payment of AUD 20 million due twelve months later.

Alongside the proposed BTP divestment, Perenti intends to sell equipment associated with its West African surface mining operations.

Together, these initiatives are expected to generate approximately AUD 140 million to AUD 155 million in proceeds, subject to transaction completion and asset sales.

The portfolio transition coincides with the appointment of Vanessa Torres as Managing Director and CEO in 2026.

Her leadership responsibilities include overseeing operational performance, capital allocation and the company's evolving geographic exposure.

Contract Pipeline Supports Future Activity

Perenti reported work in hand of approximately AUD 6.2 billion at 30 June 2026, providing contracted revenue visibility across its mining services operations.

The company also identified a tender pipeline of approximately AUD 20 billion, including opportunities in Australia, North America and Africa.

Gold-related operations continue to represent a significant proportion of its contracted activity, making customer spending patterns important to future performance.

During September 2026, Perenti announced additional drilling and underground mining contracts with a combined value exceeding AUD 200 million.

These developments expand its contracted operating activities, although revenue recognition will depend on mobilisation schedules and project delivery.

FY27 Financial Guidance and Operational Outlook

Perenti (ASX:PRN) has provided FY27 revenue guidance of AUD 3.45 billion to AUD 3.65 billion.

Underlying EBIT(A) is expected to range between AUD 335 million and AUD 355 million.

The company anticipates net capital expenditure of approximately AUD 370 million, including Investment associated with ongoing project development and new contract mobilisation.

Management expects earnings to remain weighted towards H2FY27 as projects progress through mobilisation and operational ramp-up.

However, labour availability, operating expenditure, contract execution and customer investment decisions could influence actual results.