Industrials

Duratec posts upper guidance for FY22 revenue of $315m

Mon 20 Jun 22, 12:56pm (AEST)
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Key Points

  • Duratec flags full year FY22 revenue of up to $315m
  • Company has secured just short of $60m in Australian defence contracts since January
  • Earnings expected to sit between $18m-$20m compared to $5m in first half of FY22

Duratec Limited (ASX:DUR) is up 9% at lunchtime as the company flags its expectations to record up to $315m in full year FY22 revenue. 

Duratec’s lower revenue estimate sits at $305m. 

The company has scored $60m of Department of Defence contracts in the first half of 2022. Most relate to refurbishment of infrastructure at RAAF sites and similar locations. 

Compared to one week ago, the company’s share price is up 9.09%. 

A look at Duratec's national footprint (as of January 2022)
A look at Duratec's national footprint (as of January 2022)

Solid order book ready for start of FY23 

The engineering firm believes it is in a strong position to kick off FY23 with Duratec reporting an orderbook of $454m and tendered works of $462m earlier this month. 

The company states this provides it with an overall pipeline of tangible opportunities to the tune of $1.62bn. 

Revenue and earnings data for the full year results are subject to audit per standard procedure. 

Defence not the full story 

Duratec is currently working on a number of major projects as the financial year comes to a close, including:

  • Perth Central Park building re-cladding works

  • The extension of Oxley Wharf in Queensland 

  • Western Sydney International AIrport aviation fuel works

  • Northern Territory RAAF Base Tindal re-fuelling facility 

Duratec sees post-covid resembling ‘normal’ 

The company further notes demand for its works on the east coast has picked back up, as demand for works in Western Australia remains steady. 

Management expects these trends to continue through FY23. 

“After operating in very challenging conditions over the past two years, we are delighted by the second half performance,” Duratec managing director Phil Harcourt said.

“We will commence FY23 with a strong order book…whilst mitigating some prevailing market challenges.” 

Duratec's three month charts up against the industrials index (XIJ)
Duratec's three month charts up against the industrials index (XIJ)

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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