Downer EDI Ltd (ASX:DOW)

A$ 5.69 0.03 (0.53%) Market Cap: 3.80 Bil Enterprise Value: 4.75 Bil PE Ratio: 55.24 PB Ratio: 1.83 GF Score: 70/100

Full Year 2024 Downer EDI Ltd Earnings Call Transcript

Aug 30, 2024 / 12:00AM GMT

Release Date Price: A$5.59 (+16.95%)

Transcript

Key Points

Positve

Downer EDI Ltd (DNERY) achieved a pro forma EBITDA margin of 3.3% for the full year, up from 2.6% in FY23.
The company reported a 34% increase in pro forma EBITA to $384.1 million.
Normalized cash conversion improved to 104%, up from 63% in FY23.
Net debt to EBITDA ratio decreased to 1.4 times, down from 2 times at June 30, 2023.
The FY24 total dividend increased by 30.8% to $0.17 per share.

Negative

Downer EDI Ltd (DNERY) experienced three workplace fatalities during the year.
The transport segment faced reduced spending from transport agencies, particularly in Victoria.
The company incurred $177.2 million in individually significant items, including regulatory reviews and legal matters.
Cash flow phasing on a major project will unwind in the first half of FY25, impacting cash conversion by approximately 10 percentage points.
The company expects continued subdued levels of government spending on roads in Victoria in the first half of FY25.

Operator

Thank you for standing by, and welcome to the Downer Group 2024 full-year results call. (Operator Instructions)

I would now like to hand the conference over to Mr. Peter Tompkins, CEO. Please go ahead.

Peter Tompkins

Downer EDI Ltd - Chief Executive Officer, Managing Director, Executive Director

Thank you, Darcy. Good morning, and thank you for joining our 2024 full-year results presentation. With me is [Mal] Ashcroft, our CFO, and following the presentation, Mal and I will open the call up to questions.

The Downer advantage. It's important that I frame this result with some observations about Downer first. You'll have heard a lot about trading conditions throughout this reporting season and a broad range of mixed macro factors. For Downer, whilst we'll still call out some shorter-term challenges around the timing of some state government spending, the overall picture is that the infrastructure services markets we operate in have several key tailwinds that help Downer.

First, government outsourcing will continue driven by

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