Good morning, ladies and gentlemen, and welcome to Service Stream results presentation for financial year '26. As per the introduction, my name is Leigh Mackender, Managing Director of Service Stream, and I am joined today by our Chief Financial Officer, Linda Kow.

In terms of the agenda, I'll start by covering some of the group's highlights and providing an update on Service Stream's operational and financial performance. I'll then pass to Linda, who will talk through the group's financial performance and capital management strategy in greater detail.

We'll then provide an update with regards to trading conditions, group outlook for FY '27, and finally we'll open up the call for questions. I firstly wish to begin by acknowledging the traditional custodians of the land in which we meet today, and I pay our respects to their elders past, present, and emerging.

Turning to slide 3. Service Stream's journey over the last 10 years has been one centered around growth and diversification, ideally looking to leverage the business's telecommunication heritage and create a multi-network business.

At its core, Service Stream is an essential network service provider. Our growing team of 6,500 employees and more than 12,500 specialist contractors design, construct, operate, and maintain the critical infrastructure that millions of Australians depend on each and every day.

Our business undertakes more than 55 million property visits annually across what is now 16 market segments that we operate across under our three reporting segments. Creating sustainable and long-term shareholder value has and remains at the center of our focus and the outcomes we strive to deliver under the group's strategic plan.

We're incredibly proud of the business's progression and the strong attributes which we believe differentiate Service Stream from our broader market peers. The business has major exposure, through more than 180 contracts, to growing infrastructure markets which continue to benefit from significant investment given their critical nature.

Our contract base predominantly supports long-term annuity-style revenues across multi-year operations and maintenance agreements. The terms in which these commercial agreements are negotiated are favorable, with circa 90% of the group's revenue secured under lower-risk schedule of rates or alliance-style cost-plus agreements.

Our business has a strong, proud retention rate, holding many agreements well into their 30th-plus consecutive year, despite these generally tested in the market on average every 4 to 5 years. We have an enviable client base representing state, federal government, and major industrial asset owners and operators.

The group generates exceptional cash flows from its operations, consistently exceeding the 100% conversion rates year on year. We have a capital-light business model, but we are also proud of the owner's mentality which exists right across the business and ultimately guides our long-term decision-making.

Whilst we've demonstrated the ability to improve the group's financial performance, grow and diversify the revenues, it's exciting that there's still further work and opportunity ahead to drive improved results that we'll strive to deliver in the days ahead. With regards to the group's FY '26 results, I'll start by directing everyone to slide 6, where I'll just touch on some of the key messages for the year.

As I just mentioned, we're really pleased with the performance and the results achieved over FY '26, which reflect a culmination of years of hard work as the business seeks to drive a range of sustainable improvements. Results today are again headlined with improvements made across the group's financial performance and an enhanced quality of earnings.

This is evidenced through a significant step change in profitability across our utility operations, with EBITDA margins up 130 basis points on PCP to reflect 5.8%. The group's EBITDA margin also improved by 60 basis points to reflect 6.6% EBITDA.

The business enjoyed another exceptional cash flow performance result, contributing to a further strengthening of the group's net cash balance sheet, which reflected $80.7 million at the close of the year. One of the major highlights in FY '26 was the award of the group's first defense contract, marking Service Stream's entry into what is a new, attractive, growing sector for our business.

We're pleased to confirm that not only is the mobilization of the operations gone exceptionally well, but the full year results include a revenue contribution which is in line with our expected full-year run rate that we've signaled to the market, and there's been a positive earnings contribution after only the first initial 5 months, and this has assisted in the group exceeding the market consensus that we'll talk through today. More broadly, the group has continued to strengthen its order book.

We now have 75% of our revenues secured under long-term operations and maintenance contracts. As I've said before, 90% of those operating under a lower-risk schedule of rates or alliance-style model.

Finally, on the back of these positive progress made throughout the year, we've seen a double-digit increase in EPS to 13.1 cents per share, and that reflects a 17% increase on PCP. On the back of these results, the board was pleased to declare an increase in the group's full-year dividends for our shareholders.

Moving to slide 7 and the group's financial highlights, which Linda will expand on further later in the presentation. The first is starting with revenue over the year was $2.475 billion.

This reflected a slight increase on PCP, most notably with growth across Utilities and the recently formed Asset and Facilities division. This division incorporates our new Defense operations with our legacy Transport operations.

The business continues to be selective as contracts regularly come up for renewal, actively choosing not to secure others where that may, in doing so, could erode our focus on quality of earnings. We are absolutely confident in further revenue growth in FY '27 given the business has successfully secured and now mobilized a number of major contracts across Defense, Water, and Industrial operations that I'll talk to later in the presentation.

More importantly, EBITDA was $163.4 million, and that reflected an increase of $17.3 million, or 11.8%, on the prior year. The group generated OCFBIT of $186 million and achieved an exceptional EBITDA to OCFBIT conversion rate of 113%.

This is again reflective of Service Stream's blue-chip industrial client base, the positive terms in which our agreements are negotiated, and the strong focus placed on works to cash right across the business. As I just mentioned, those high cash flows supported a further strengthening of the group's balance sheet, with the net cash position closing at $80.7 million, and that reflected an improvement of $7.1 million on the position reached as of June 2025.

We're very pleased to see another strong result with this regards, particularly as the business has had to cater to both increased dividends, a large tax payment, and the mobilization of Defense and other contract operations throughout the year. As I mentioned before, finally, on the back of those results, given the positive position of the business, the board was pleased to increase the fully franked final dividend to 3.5 cents per share.

That took full-year dividends to 6.5 cents, an increase of 18% on the prior year. Slide 8.

Moving there, there are a number of significant operational and strategic highlights that have been achieved over the year. One of the business's priorities over the last 3 years has been to optimize our operations, creating that scalable platform from which the business will continue to not only grow, but deliver an improved and sustainable quality of earnings.

A major focus we've often discussed has been to drive improvements across our Utility operations, to both its level of earnings and its EBITDA margins, and we're incredibly pleased to deliver significant increases across both of these during the year. EBITDA increased by 34%, or $15.4 million, on PCP.

EBITDA margins over the full year moved 130 basis points on PCP to reflect 5.8%. The business has now consistently delivered incremental improvement over eight half-year periods.

Most importantly, the division achieved a 6% EBITDA margin in the second half. That exit rate is certainly strong and reflects a target or a result 18 months ahead of the target that we discussed only 6 months ago.

Importantly, we've still identified further opportunities which will support incremental improvement, but these will take time to deliver. We continue to be excited about the Utility division.

We've often reflected that it's one of the group's major growth engines, facing a number of strong markets, and we do expect further incremental improvement in margins and growth in revenue over FY '27. The Utility performance, combined with other initiatives, supported an improved group EBITDA margin of 6.6%, reflecting another strong result equating to 60 basis points on PCP.

We've often talked about a major priority for all services businesses being the retention of existing contracts as they reach their full term and proceed to market, as well as securing new growth. We're really proud the business had another successful period, securing $3.2 billion of multi-year contracted works throughout FY '26.

This reflected a strong retention rate of 93% for the agreements reaching a renewal milestone or end of term and proceeding to market. As I've said earlier, importantly, the business continues to be selective about our contract renewal options and the associated terms to ensure that as these are secured, they are enhancing our quality of earnings, and not undoing some of the positive work delivered in the prior periods.

The group's level of work in hand remains robust at $8.2 billion. Importantly, that $8.2 billion only reflects initial terms, with many of Service Stream's contracts having multi-year extension options not referenced in that headline number.

Recount for those options, our work in hand is just exceeding $14 billion. The award of a major contract with the Department of Defence supporting base infrastructure across Northern Territory and South Australia marked what I believe to be one of the most significant and exciting milestones in Service Stream's history.

This is a culmination of a 5-year journey where we've sought to strategically expand the group's addressable market into an area we believe will benefit from a significant and increased level of investment into the future. We are incredibly pleased with the team's performance, and I'm happy to report the mobilization program has progressed well, meeting or exceeding the targets that we set.

Our enhanced net cash balance sheet also provides strategic optionality as the business continues to actively pursue both organic and M&A growth opportunities. We announced a small strategic bolt-on acquisition of RIE Group in May this year, which has added new capabilities and expanded the group's markets.

We, of course, continue to assess other M&A opportunities as they present in market. Continuing to slide 9, and we've again provided insight into the group's diversified revenue profile, representing another positive attribute of our focus, which has been driven over recent years and now reflects a higher-quality, lower-risk revenue base.

Over the past 12 months, we continue to see an improved mix of works delivered across the group, with operations and maintenance revenues holding steady at 73%. Minor capital works, reflecting 25%, we again feel is an appropriate balance that provides our business with exposure to our clients' capital expenditure programs, and work is most commonly delivered under multi-year panel arrangements.

These panel arrangements offer the ability for our business to review and selectively bid on specific opportunities that fit our criteria. Most importantly, we are really pleased to report that financial performance driven across these minor capital works has continued to improve over the last 12 to 18 months, and now is consistently representing a higher margin than the O&M works, as it should.

If you look into the commercial models that govern the group's work, this is a real strength, as you'll note that we've seen 90% delivered under either a lower-risk schedule of rates or cost-reimbursable alliance-style model. Continue to see improved diversification across the group in terms of the industry sectors and therefore clients that we're supporting, with the business certainly now reflecting a multi-network service provider aligned to those strategic priorities I spoke of earlier.

We know 70% of our work was on behalf of local or federal government entities, with the remaining 30% on behalf of tier 1 industrial asset owners and operators. Moving into major contract renewals and new business on slide 10, and I've often spoken about the importance of the business retaining contracts as they proceed to market at the end of their respective terms.

This has been an area where the business has been incredibly strong. That needs to be coupled with securing profitable, incremental new growth.

On this slide, we're providing insights into just a few of those major agreements that were secured across the group over the year. This is certainly not an exhaustive list, but a small selection of those secured, and whilst I won't go into the detail, we're happy to see strong retention rates, but also these agreements, particularly new contract wins, being secured right across our broad markets.

Moving to slide 11, and we can see how these contract awards have assisted in maintaining a very strong level of work in hand across the group. As I noted from the outset of the call, the work in hand balance now reflects $8.2 billion in future contracted works.

That only reflects the initial term. If we include the multi-year extension options which exist across almost all of our agreements, there's another $6 billion of work taking work in hand to $14.2 billion.

That reflects circa 5 times revenue coverage as we sit here today. Importantly, that quality of the work in hand is much higher, again, 85% reflecting operations and maintenance contracts.

Slide 12 will provide some insight into our reporting segments. Starting with Telecommunications on the left-hand side.

In early FY '26, the division successfully transitioned to a new Field Services Agreement with NBN, reflecting one of the group's material contracts, as well as mobilizing a major operation across Vic, SA, NT, and WA. Positive steady progress has been made also ramping up and executing our fiber network upgrade program with NBN, known as N2P, with several major tranches being successfully designed and built across SA, ACT, and WA.

In addition to resigning several major agreements, the business also secured a number of small intercity fiber construction deployments on behalf of clients such as Telstra and Ausgrid, and they are underway. This is the first time our organization has taken part in these types of programs, and it's been positive to see the division able to secure, mobilize, and execute this new work type, which we no doubt continue in support of data center deployments, renewable energy projects, and network resilience operations happening right around the country.

Moving to Utilities, and in line with my earlier comments, it's been another busy and productive period for our Utility division. Again, we are pleased to report the strategic optimization program has made further significant progress, as evidenced by what is a sustainable step change in margins and our ability to reach an EBITDA exit rate with a 6 handle, well ahead of the 18-month time period we discussed only 6 months ago.

This bodes well for the future of the division, being one of the main growth engines of Service Stream. We're not only demonstrating the business can secure new multi-year O&M contracts to support growth, but the earnings from these contracts and revenues are of a higher quality and providing a much more substantial contribution to the group.

In terms of the division's improvement programs, we continue to identify a range of optimization initiatives to support further upwards in margins, albeit future progress will be slower than has been demonstrated in the last half. At the same time, we're confident the business will continue to expand and grow.

As I mentioned earlier, in May, the business was delighted to announce the acquisition of a small bolt-on business with RIE Group, a leading provider of industrial maintenance and electrical capabilities, and has expanded our operations to include now oil and the LPG markets across Queensland. Whilst small, the business enhances our capabilities and expanded those addressable markets, and we're confident that when paired with what is a growing industrial division within our business, we'll see some positive progress in terms of new contracts being secured over the course of the next 12 to 18 months.

As I said earlier, the Utility division reflects one of the major growth engines, and it's great to see strong organic growth in terms of new multi-year contract wins across water and industrial markets being secured and mobilized throughout this year. They will certainly provide a contribution in '27.

Finally, Asset and Facilities. This division reflects a combination of the group's legacy Transport and new Defense operations.

These two divisions each hold very similar capabilities aligned with strategic asset management. As Defense operations have grown and expanded since the mobilization, which concluded last month, it made sense to bring these two divisions together and leverage the back-of-house expertise that exists across our capable teams.

Not only provides a great platform for our skilled staff to expand their focus and skills, but avoids duplication of back office, indirect resource base, and costs in a division that we're confident will continue to grow and expand into the future. In addition to Defense operations, Service Stream is well-positioned to secure incremental new works across our Transport market, with several long-term maintenance contract opportunities presenting each year.

Turning now to slide 13, and I wanted to provide a dedicated update on the status of our defense mobilization following the contract award in September and the go-live, which commenced only 5 months ago in February this year. Again, say with great pleasure and pride that the business was able to confirm and were successful in securing that long-term asset management contract with the Department of Defence.

Mobilization commenced in earnest in September, and we're pleased to confirm that operations successfully went live on 1 February. We've overseen successful engagement with more than 1,600 resources, deployed 350 vehicles, and mobilized resource across 100 sites, all within the perimeter of the agreed mobilization budget and the required timeline.

I'm very pleased to report that operations are performing well, and we've received positive feedback from our valued client about the progress and the quality of the works that have been completed. Work volumes have consistently and incrementally increased over those initial 5 months in line with our expected forecast, and we hit a steady run rate that will support that circa $240 million in annual revenues being delivered across the business in FY '27.

Margin contribution across those works has certainly exceeded our expectations, with the division not only breaking even the first 5 months, but actually contributing a small profit, which is a very pleasing sign. Moving forward, our teams will continue to focus on optimizing our field workforce and operations.

We've also commenced forming a multidisciplinary team from right across Service Stream, who are now charged with identifying, bidding, and looking to secure some of the initial capital works and other projects that are on offer in this market, with a target date of early in the calendar year 2027. Switching gears now, and I wanted to just briefly touch on the business's success in making a meaningful and positive contribution with regards to the sustainability of Service Stream's operations.

Our business has a very clearly defined strategy aligned to our five sustainable pathways, with these being safety, people, community, environment, and governance. These areas represent those that we can not only make a meaningful contribution, but aligned with the feedback of our stakeholder engagement over several years.

Highlights of the full year include, but not limited to, 100% offset of the group's Scope 2 electricity usage. Deployed more than 130 hybrid vehicles as we worked to reduce our emissions in a measured yet meaningful way.

In line with our commitments detailed in our 'Innovate' Reconciliation Action Plan, we're very proud to report 179% increase in First Nations spend across local communities which we service and support. That spend now reflects more than $33 million per annum.

There's also been a 44% increase in Indigenous participation right across our workforce. Again, we're very proud of the achievements across those five pathways, and we look forward to sharing more information in the group's sustainability report, which is due for release in early October.

Finally, before I hand to Linda, I want to touch on our safety performance. As I've stated many times, the health and safety of Service Stream's workforce, our clients, and the community in which we operate is our number one priority.

Financial year '26 reflected a challenging year with regards to performance across lag indicators, which shifted back slightly as new contract mobilizations and operations commenced. One of the challenges we often find is bringing on new resources into the group's safety ecosystem presents a challenge, and unfortunately, we had a slight increase in recordable incidents and lost time injuries.

It's important to note the performance still reflects a very strong level when compared across our industry peers, but driving improvement is a major focus for our safety and operational teams right across the business. As we move forward, the teams are focusing on higher-risk work activities, uplifting the skills and capabilities of our frontline supervisory networks, and holding a steadfast focus on those new contract mobilizations as they commence.

Yes.

Thanks, Leigh, and good morning to everyone on the call. As Leigh has touched on in his opening comments, we've had another great year, which is reflected positively across our financial metrics outlined on page 17.

Total revenue for the group was $2.48 billion, a slight increase of 2.3% on last year. This includes the strong start we've had across our Defense operations, with the contract now operating at a level that supports the $240 million per annum contract value we announced back in September.

Telco revenue, however, was slightly lower this year, largely due to the transition between different programs of work in that segment. EBITDA from operations was $163.4 million, an increase of 11.8% from last year.

Group EBITDA margins have continued to accrue and are up another 60 basis points to 6.6%. This uplift reflects the continuing improvement in quality of earnings through focus on delivery, risk appetite on commercial models, and operating leverage throughout the group.

The group's adjusted NPAT for the year was $81.1 million, up 18.4% on last year, which equates to an adjusted earnings per share of 13.1 cents per share. This reflects the EBITDA uplift and is also aided by lower effective tax rate this year due to increased JV dividends.

Statutory net profit after tax was $56.9 million after allowing for the amortization of customer intangibles and ERP transformation costs, of which the SaaS components have been written off. As per usual, we've included in the appendix a reconciliation of our headline metrics to the corresponding statutory metrics.

We've had another year of exceptional operating cash flow performance, generating $186 million, which is an OCFBIT conversion rate of 114%. This is despite the additional working capital investment required to mobilize the new defense contract.

Consequently, we've been able to further strengthen our balance sheet, with net cash increasing further to $81 million. Finally, capping off the headlines, the directors have declared a final dividend of 3.5 cents per share, fully franked, which takes the total FY '26 dividend to 6.5 cents per share, which is an increase of 18.2% on last year.

Now on to segment performance. As Leigh has noted, we have combined our Transport and Defense operations to form a new Asset and Facilities Management reporting segment.

This is underpinned by common skills and asset management capabilities across both businesses and provides additional capacity to further scale our Defense operations. Revenue for the segment was $367 million, which includes $88 million from the new defense contract, which has been progressively ramping up from the 1st of February.

The defense property and asset services contract is based on a blend of recurring program maintenance and corrective maintenance and other works, which can be variable, it's been great to be able to reach a run rate that provides confidence on the $240 million per annum announced as we exit the year. Transport also had a good year, benefiting from additional New South Wales pavement repair works, achieving revenue growth of 14%.

EBITDA for the year was $24.8 million, up $7.6 million from the prior year. Pleasingly, this defense contract made a positive contribution, not just in H2, but across FY '26 overall, noting we had continued to carry a team post-tender to support the award of the contract in September, and then prepare for mobilization.

Albeit a small contribution, we had expected a small loss or breakeven outcomes this year, given the size and scale of mobilization and the ramp-up profile. This initial contribution also provides confidence on expected defense earnings contribution into '27.

Transport operations also performed well, with strong outturn from the additional minor capital works undertaken. I should note the results for those of you that analyze on a half-on-half does include a one-off stamp duty refund from the NZPTP, which we recognized in H2.

Slide 19, Utilities. FY '26 has been another positive year for the Utility segment, which has achieved a step change improvement in its quality of earnings over recent successive reporting periods.

Looking back, EBITDA margin has now increased by around 3% over the past 3 years through portfolio repositioning, disciplined bidding controls, and work execution. Revenue for the year was $1.05 billion, which was $42.2 million, or 4.2%, up on PCP.

The water sector has again continued to provide strong organic growth through its expansion of existing contracts, and also new clients such as QUU. However, there were some revenue offsets due to our disciplined bidding controls, resulting in some expiring contracts not being renewed, as we flagged in the half.

EBITDA from operations was $60.7 million, up $15.4 million, or 33.9%, on last year. EBITDA margin was 5.8%, with the second-half exit rate of 6% well ahead of target.

I should note that Utility margins are naturally biased to be higher in the second half due to the recognition of annual contract incentives. The business continues to target further margin improvement, but given recent gains, incremental gains are expected to be realized at a more gradual pace.

Moving on to Telecommunications on slide 20. The Telco segment result does reflect cycling off from a strong '25.

Following the significant contract renewals over the past 18 months, the business now operates across a very stable base, four O&M contracts, and minor capital works across both fixed-line and wireless programs. Revenue for the year was $1.06 billion, down 9% on last year.

This does reflect the cycling off of programs in '25, and the transition to new contracts during the current year, including NBN Field Services. Revenue was also impacted by the slow ramp-up of the next tranche of NBN fiber upgrade program through its design phases.

Consequently, EBITDA was down $91 million, sorry, EBITDA was $91 million, down $12.8 million on PCP. This reflects the revenue reduction as well as a small margin reduction following the transition to the new NBN Field Services Agreement in the first half.

Pleasingly, following that reset, there's been a slight improvement in second-half margin to 8.7%. Slide 21 summarizes the group P&L, presenting both the statutory and reporting metrics.

We've already touched on group revenue drivers for the year. The only other callout is there should be a full-year full-through benefit of the defense PAS contract into FY '27 of around $150 million alone, which will be a meaningful contributor to the FY '27 growth aspirations.

Group EBITDA from operations growth this year is predominantly delivered through margin expansion, which increased by 60 basis points to 6.6%. Utilities underpinned a significant portion of this improvement, lifting their margin by 130 basis points to 5.8%.

Defense also contributed positively, which is in contrast to the prior year where we were still incurring tendering costs. Finally, there has been additional corporate cost recovery across operating units, resulting in lower unallocated costs.

NPAT has increased significantly again this year by another 18.4% to $81 million. D&A was lower than expected due to fully amortized items offsetting the increase in new assets from contract mobilizations.

There will be a full-through impact next year, though, particularly given the phasing of the new contract mobilizations. Tax.

There has been some benefit from a lower effective tax rate due to franking credits received on higher JV dividends. This is expected to normalize in the next year.

As noted previously, NPAT excludes $21 million of SaaS systems investment costs, which were charged to statutory profit. These costs will be non-recurring once the program is completed.

Now moving on to group cash flow, which is on slide 22. As noted in the headlines, we have again delivered an exceptional cash flow outcome for the year, achieving an EBITDA to OCFBIT conversion rate of 114%.

This is now the third consecutive year of greater than 100% EBITDA cash flow conversion, which has enabled the balance sheet to become leaner, with working capital reduced to 9.8% of LTM revenue. Despite increases to expected tax and investment cash flows this year, we've been able to further improve the net cash position by $7 million to $81 million.

This is also net of opportunistic share purchases to fulfill our equity-based incentive requirements of $13 million. Cash tax for the year was $48.8 million, which includes $25 million in relation to the final FY '25 installment.

Investing cash flows, including SaaS IT upgrade costs, was $44 million, representing a modest 1.8% of revenue. Over $40 million of new fleet and equipment for new contracts were deployed this year, although about half of that was leased.

IT upgrade costs, which includes the SaaS component I've referenced, encompasses our people and payroll systems, and finance systems, as well as the new field solution we deployed for Defense. These projects are expected to be predominantly complete by the end of FY '27.

Importantly, the vast majority, greater than 75%, of investment spend this year, was invested to support new contracts or business optimization. Finally, on this slide, lease liability payments did increase by 20% to $30 million, reflecting the additional fleet deployed across our new contracts.

Now turning to the balance sheet and capital management on slide 23. Consistent with prior periods, our balance sheet and capital management approach seeks to maintain a strong balance sheet position, enable reinvestment in the business and support growth, provide M&A optionality, and provide sustainable dividends to our shareholders.

The group's balance sheet is in a strong position, underpinned by a capital-light business model and strong cash conversion. The business currently has access to circa $400 million of liquidity, taking to account existing facilities and net cash.

This has enabled the business to invest confidently across organic and inorganic opportunities to support an optimization initiatives, noting the expansion into Defense is and will be highly accretive, and there are no financial constraints in supporting our business to secure further organic growth. We embarked on the upgrade of our finance and people systems during the year and also invested in a new field management system to support the defense contract, which is currently being refined.

These implementations are largely expected to be completed in FY '27 and will deliver scalable platforms that can support further growth and enable further productivity initiatives. Maintenance capex and IT upgrade costs next year are indicatively expected to be in line with the current year, running at around 1.5% of revenue.

With regards to strategic acquisitions, the acquisition of RIE was completed in July, and we are continuing to assess other M&A opportunities that meet our strategic criteria. Finally, delivering sustainable dividends to our shareholders is important.

This is reflected in the increase in our final dividend to 3.5 cents per share, with full-year dividends of 6.5 cents per share, up 18% on last year. That's all from me, I'll now hand you back to Leigh to take you through the remainder of this presentation.

Thanks, Linda. We're at the tail end of today's presentation, but I'll move to trading conditions and group outlook, and direct everyone firstly to slide 25, Market Dynamics.

We've provided an update here around the group's major markets and the level of annual expenditure over the short to medium term. We continue to see strong demand from infrastructure owners and operators undertaking expansion and upgrades across their critical assets, and that investment is generally driven by a range of factors which includes population growth, aging infrastructure, the energy transition, digitalization, and the impact of more common and extreme weather events.

We now have a strong foothold into both defense and industrial sectors, which have expanded the group's total addressable market and now exceeds over $60 billion in annual maintenance expenditure. This continues to grow year on year, with outsourcing continuing to also incrementally increase.

We continue to see a strong pipeline of opportunities ahead, both associated with O&M and minor capital works, consistently coming to market through competitive tender processes. The business continues to diligently assess these and looks to take part in the competitive processes for those that we believe aligns to our group risk appetite and will provide the most attractive returns for our shareholders.

Turning to slide 26 on the growth agenda. Growth and ongoing diversification is understandably a major focus for the business and a core component of our group strategic plan.

Linda and I are often asked about management's growth targets, both year on year and over a longer term, thought it might be beneficial to provide some insight into what our approach is and the targets that we set to meet or exceed each year. At the outset, we ideally target for growth of between 5% to 10% year on year across all operations.

Arguably, we push towards the top of the range. Most importantly, that range is not a ceiling, not a floor.

Whilst it's more challenging to control revenue, as you have fluctuations in client volumes and a portion of operations are by virtue reactive, there are, however, levers we have greater control over with respect to labor and optimization costs right across the business. Whilst we target revenue growth, we have a steadfast focus on ensuring that the group's earnings are achieving that annual targets.

Organic growth is our primary focus, and we are fortunate that through much of the works to reshape and diversify our operations, we have several positive elements that support strong organic growth. 97% of the revenue falls under contracts which have mechanisms to adjust for inflationary pressures, we generally see 3% to 5% uplift year on year.

In addition, we're often fortunate to secure incremental portion of our clients' spend, predominantly linked to our role as an O&M provider and having that strong and persistent point of presence right across their network. The third element is that we have a wonderful client base that continue to invest in the upgrade and expansion of their assets, the opportunity to secure specific minor capital works and project base.

We also, of course, have the opportunity to take market share as client programs proceed to market at the end of their natural contract terms, just as we have with several of the wins this year that we've referenced on the call. We have a strong position to secure incremental organic growth across those four areas.

In addition to this, we've also undertaken a number of strategic acquisitions over the last 10 years. Many will know we take a very diligent approach to M&A given the inherent risks, but we believe Service Stream is well-positioned in terms of our track record, the strength of our balance sheet, and our general performance, that should we find a target which aligns with strategy and meets our diligent criteria, that we can proceed.

Finally, in terms of group outlook on slide 27, so as outlined today, Service Stream is in excellent health and great position. The business has a strong, diversified work order book exceeding $14.2 billion in works.

This is heavily biased to lower-risk, long-term O&M agreements. The mobilization of several new agreements, which already been secured in the prior year, associated with Defense, Water, and Industrial clients will support growth of revenue and earnings in '27.

There continues to be a strong pipeline of other works proceeding to the market through competitive tender. The group expects and is confident in delivering earnings growth in FY '27, and supported by the improved and sustainable financial performance that we've demonstrated and the mobilization of those recently secured agreements, as well as leveraging our scalable and diversified platform.

That concludes our presentation today. On behalf of the Service Stream board, I'd like to express our personal thanks to our fantastic staff working right across the country for their continued efforts and their dedication.

I also thank all those on this call, and I'll now hand back to the moderator to open up for questions.

Hi, Leigh and Linda. Thanks for taking my questions.

Just first question just around margins for both Utilities and Defense. Firstly with Utilities, clearly 6% margin in second half.

You're saying that it's going to improve, but at a sort of a gradual rate. Is that sort of a ceiling margin that you're thinking about with this segment?

That's on Utilities. With Defense margin, $88 million of revenue contribution in FY '26, could you give us a sense as to what sort of margin that you've delivered at the EBITDA level and whether that's obviously exceeded your expectations around nil margin for this year.

Has that sort of reshaped your thinking around where Defense margin could potentially go? Thank you.

Hi, Will. Thanks for the questions and thanks for joining the call.

Look, as it pertains to Utilities, we've gotten there pretty quickly, and obviously we aspire to continue to improve as we've mentioned on the call. I actually don't think we have a ceiling, and it really reflects the nature of our commercial model and the opportunities we take.

As our commercial models range from a blend of alliance-style, which is cost-plus, and so your margin is actually capped by that arrangement, subject to your ability to earn incentives; a schedule of rates, which is quite low-risk, but there's a better margin embedded within that; and what we've seen recently as well is our team have been able to execute on some minor capital projects, which generally, because they are small project-type works, deliver a better margin. I think it's really going to be a question about that mix over time.

I don't think there's a ceiling per se, but as you can see, this has been a journey. It's a journey that we're naturally conservative in terms of providing guidance, but that hasn't stopped us in trying.

That's probably the best guidance I can give you, but certainly you should see that continue to improve. With Defense, we've guided typically for mid-single digits.

We're just shy below that for the earnings, for the call it the last 5 months, which is a really great outcome given that lots of moving parts, outside looking in, the scale of mobilization, I can't even describe it to you. I think we are still affording the opportunity to continue to bed down the operations, but we are seeing really good, positive momentum around contract structure, but also additional earnings opportunities.

Some of that goes towards giving us that confidence of $240 million. Hopefully we're having a conversation in a year's time that we've seen more than that.

As additional volumes always comes with that incremental margin as well because your overhead is fixed. I think yes, there is a bias to upside, which is what the analysts have generally said.

At the moment, we've said mid-single digits, where we've got to get there with the bias to upside.

I agree. I'd just add I think everyone is really summarized that well.

I think we've demonstrated with Utilities really that first-principle basis of which we've looking and assessing the margins contract by contract. We've done that over eight halves now.

We've got a plan which we've formulated for this year and next two years following. It shows we should be able to deliver incremental improvement, we're confident we'll be able to see that.

I agree with Linda's comments on Defense. I think we're pleased.

We thought, and we guided the market, that it might break even for the first 5 months, and we only started literally 5 months ago, but to see that positive contribution, not far from the margin what we expected to drive over the first year, gives us that confidence that there's that bias for upside what Linda references.

Thank you. That's very clear.

Just on the Telco side, could you provide some color around how you're thinking about top-line trajectory from here on? Obviously delivering 8.8% margin for second half, it sounds like to me that's sustainable going forward, but just any steer on I guess the revenue trajectory for Telco and whether if there's sort of a half-on-half skew that we should be thinking about into '27?

No, it's a great question. We really appreciate it, Will, because we know that everyone does sort of really have an eye towards that Telco heritage, and like we've said before, it is a very strong pillar and important pillar of this business.

Really pleased to see, in line with our expectations, we said that we thought Telco would have a 20 basis point improvement over the course of first half to second half, and that's exactly what we've delivered. We could see the forecast.

The team have really delivered to be able to drive that. In terms of revenue, firstly, before I go to the earnings for '27, the team are absolutely targeting some revenue growth into '27.

Now it is more challenging in Telco compared to Utilities because the market is just so much smaller. As we've said before, we've been able to secure some incremental build work with intercity fiber, and we've got that great position now that our operations are bedded in after a year of mobilizing that we can hopefully get some additional programs of work.

We are absolutely budgeting and targeting top-line growth for Telco. It will certainly not be to the level of Utilities and Defense, etc., but we're still targeting growth.

I think we'll also continue to see a slight improvement on our EBITDA margin across Telco. I think sort of in the order of what we saw this year will probably be reflective of what we target again.

The team are really quite diligent. They've got a clear plan around how they can grow and improve that quality of earnings, I think we'll be able to replicate that similar sort of margin trajectory or uplift in '27.

Thank you. Then my next question's just around M&A opportunities.

There's been an article out there recently talking about certain targets and so forth in the news space. Obviously you've got a slide in there which kind of sets out how you're thinking about M&A more extensively than what you have sort of outlined in the past.

Can you just, to the extent that you could, step through sort of the target markets that you're looking at, or are you looking at sort of bolt-on like you've done recently, or is transformative acquisitions of a great scale, is that something that you guys are open to? Thank you.

No, it's a great question, Will, and certainly we've noted with interest all the commentary around street talk and others about the processes where we're apparently in. Look, I think we've been sharing over the course of the last 12 months.

Linda, I think the business, if I look at the last 14 months, we've undertaken at least 12 different reviews across targets of varying shapes and sizes. I think that's what we continue to do, but we are very open to what is a very diligent approach to looking at those, and they need to meet a set of criteria and arguably high criteria at that.

We're certainly looking at a range of opportunities. Whilst I can't comment on that specific one which was referenced in the press, if I think about our current portfolio, I think we are underweight in Power in terms of our Utility operations.

Got a great operation in Power across Vic and SA, but we're looking to certainly add new opportunities that can help expand that. In a similar vein to Utilities, we see lots of opportunities across Industrial.

Just like we acquired RIE Group, the Industrial market is significant in size and scale. There's a lot of opportunities, not only across generation assets, gas and coal, but also oil, LPG.

Those Industrial markets represent I think a great opportunity. We are also very active and confident in looking at targets now around Defense.

We had a number of opportunities come up throughout the course of the year 2 years ago, but prior to securing that strong O&M base, we just didn't want to start to go into I suppose the minor capital works or sort of construction arm within Defense before we had that annuity base. Now that we've got those PAS contracts, I think Defense would represent a third area.

Fourth, I think asset management, facility management. Hard assets is certainly an area that we are demonstrating confidence on, and we think anything around that social infrastructure or broader asset categories around government portfolio would certainly be of interest to us.

Thank you. Then just my last question, just around some of the cost items and below-the-line items.

Corporate costs, I appreciate your comment, Linda, on this, but is that sort of a sustainable level going forward? Number one.

Number two, on SaaS investment, the ERP modernization costs, $21 million below the line, is that the level that you would expect to sort of generate in FY '27, or does it sort of taper off?

Yeah. Sorry, the first question was, oh, I've got a [unclear] I can't think.

Sorry, what was the first question, Will?

Oh sorry, corporate costs, whether if

that's corporate costs that you've

Yeah. Corporate costs.

Yeah. Look, we've typically guided corporate costs will be unallocated around 15 to 8- between $15 million to $20 million.

This year is a little bit lower because we actually allocated some of our corporate resources into the Defense activity as you can imagine, because we obviously have some corporate activity around that. It probably will be a return to that similar levels next year, depending on all the corporate activity that we do and we are quite active, as we've just discussed.

In terms of the SaaS costs, look, I'm personally frustrated by the accounting policy because to me, that is capex. The guidance that I give is that maintenance capex, whether you call it SaaS or whatever you want to call it, is 1.5% of revenue next year.

You can pick whether you want to cut the lines, but it will be probably slightly higher next year because we're now for the intense part of the deployment. Last year we only started the journey.

Hence I provide that guidance of that 1.5% so that best to ring-fence the quantum that we're expecting to invest in what I call BAU/maintenance. Does that make sense?

Yes, thank you. Thanks for answering my questions.

Thank you, Will. Appreciate it.

Hey, team. Hope you're doing well.

I just have a question, I guess. You guys sound like you're getting increasingly disciplined with how you're tendering on contracts.

I'm just wondering what you're seeing in the broader market on pricing and tendering terms, I guess, particularly in the current environment where inflation's a bit higher.

No, look, thank you very much. Appreciate your support, appreciate the question.

You're absolutely correct. We certainly have, and we've had this probably approach for the last 12 or even 24 months now around we've really revised our risk appetite.

We thought the pendulum swung too far in terms of some of the terms, conditions, and risks that our business and probably the broader market is taking. We've certainly been quite open that we need to set or secure work under an approved set of terms.

For example, we still undertake construction-based activities. We see lots of operations coming through in those minor capital works or even larger-scale construction works, but we're only doing the latter under a cost-reimbursable or alliance-style model.

Those are some sorts of examples. We are seeing a very strong pipeline.

We're not bidding on more than we are bidding on, which is a great opportunity for us and a great position to be in. In terms of the competitive position, though, that hasn't changed.

It is still incredibly competitive. We have I think our two major listed peers, which are much larger and more diversified than us, coming right down to the wire on every sort of significant O&M contract.

You have a sort of smattering of tier 2s, 3s, and other areas that may have a geographic presence or capability. Certainly still very competitive.

We did reference, though, in the pack, one of the things that I have certainly seen, I've been in the business 22 years now, I am starting to certainly see increased barriers to entry coming up right across our market. Things such as ESG requirements, cybersecurity, supply chain, these sorts of areas, our clients, given the tier 1 sort of asset owners and operators, are increasingly pushing more and more into what is higher levels of requirements and therefore increasing barriers to entry.

Whilst we require to invest in those, I think ultimately that is a strength as we move forward, because we're able to meet or exceed a lot of those, and that can be a challenging sort of I suppose aspect for tier 2s and tier 3s which just don't have those significant systems and frameworks in place.

Thank you. Just one more on the Transport business, the second half there looks pretty solid.

I'm just wondering if you can talk about some of the pockets of strength that you've seen there, and also any change in the way that you're tendering for work there.

Look, our Transport business is naturally second-half biased because really the additional works they do around capital projects it's reliant on weather, and so you generally do a lot of that upgrade works in the second half of each year. That generally attracts a better margin.

A lot of that work that we referenced, the pavement repair work that uplift in Sydney, was done then, and the team was able to extract really good outcomes from that. That's just a natural part of our business cycle.

I think that's the comment around the tendering alignment applies equally to Transport. There's no real difference here.

No, I agree. Transport is a much smaller market for us, as we've said before, but we certainly have each of the state authorities where we've got current contracts within New South Wales, we've got a couple in Victoria, one in South Australia, one in WA, and we continue to see those authorities splitting up their regions into four or five areas, and those routinely coming out to market.

We've currently got three or four of those, I think, out in market at the moment going through a tender process within just the Transport sector. There's opportunities to secure those.

Now those opportunities, like the VicRoads one we secured last year, might be $30 million or $40 million a year. If it's not substantial for Service Stream, it's certainly substantial to the Transport operations, turning over that sort of 300-odd million level.

There could be a good uplift there over the course of the next 12 months.

Thank you.

Welcome. Thanks for the question.

Thank you.

Hey, Leigh. Hey, Linda.

Hopefully you can hear me.

Hi, Lindsay.

Good morning.

Hey. Couple of questions from me.

First, just on the Water business, obviously strong year, it looks like it was an even stronger second half. My understanding is the Yarra Valley Water contract you announced a few months ago doesn't commence until October.

I just want to understand the Water business, my math might not be perfect here, but it looks like it's kind of run-rating mid-$300 million in the second half, which when you add Yarra Valley on top, gets you to $700 million-ish for next year. Does any of that sound plausible, realistic?

Have I miscalculated anything? Just high-level thoughts on Water would be great.

Thanks.

No, look, you are correct, certainly been a great year. We've talked before about what's taken us a decade to pierce this position in terms of Water, and we're certainly very excited about what that bodes for the future.

Water is one of those areas we've talked before about was just benefiting from continued investment in aging infrastructure, but also population growth. That's supporting significant investment given our O&M base.

We've seen just that consistent uplift. You are correct with regards to Yarra Valley Water, so that was a multi-year, 10-year contract that we secured this year, that is new incremental revenue, and that has not started yet.

That is going to add to the business as a pro rata application. I don't yet know exactly the number, but I don't think you're outside of the estimates that you referred to earlier, and that will commence on or around sort of the middle of October.

There's that contract there. We also have Mt Marion and others like the industrial shutdown maintenance agreement that we've secured.

There's some industrial and water revenues that are already secured last year that have not yet contributed to Utilities, and that's why those that know me know I'm quite cautious, but we know we do have enough there to see good top-line growth coming through in Utilities in the year ahead.

Brilliant. Thank you.

Then just on Telco margins, again, I think your earlier commentary was looks like you've exited the year doing high kind of eights. You talked to improvement again to be expected in FY '27.

I think in the past you've said it would be difficult or it shouldn't be my base expectation that the Telco business gets back to a 9 handle. Has your view changed there at all, or are we getting kind of toppy on Telco margins?

No, look, I think our view's still very consistent with the commentary we provided over the last 18 months. We strategically offered some sharper pricing to one of our major clients to secure, effectively, a 10-year maintenance arrangement.

That is something I'd do every day of the week, and twice on Sundays again. That we guided the market that that would drop our margin from that 9 to 8.5, and that's exactly what happened in the prior year.

We then guided in first half '26 that there would be potentially up to sort of a 20 basis point improvement, from 8.5 to 8.7. Exactly what we've forecast.

As we sit here now, I think there's still bias for upside. It's going to be, I think, probably 10 basis points, maybe 20 basis points, but that's about it.

I think we're not striving for, and don't expect it to get back to a 9 handle this year. I think that's probably a bit stretched too far.

I think that we'll see again, bias for upside and growth. Growth really has to come from our clients spending more in their programs.

There's a number of opportunities to see that happen. As we know, everyone is increasingly reliant today on telecommunication services, we think there is the bias for that to continue to grow.

They are absolutely confident they should see a small margin improvement over the course of '27.

Perfect. Final question for me, just following on something that was asked earlier.

Just Defense margins, it sounds like, well I think you've said directly, over the period you're close to where you're expecting margins to settle in Defense. Presumably mobilization at the front end of that contract maybe weighed on margins a little bit.

I guess my question is, should we then assume that you exited the period doing kind of north of 5% margins on that contract? Does that math square?

No,

I

wouldn't suggest that. We originally guided this year because the nature of Defense operations, we started in February, we started slow, and then work was basically incrementally increasing on a daily basis.

You would say you start sort of at 30% of work volumes, but then incrementally increasing from February to June to reach a run rate that will support $240 million over the course of '27. Linda said, we may see that, right?

We'll see how we go. We're very pleased to see a positive contribution, we thought we're going to break even.

It actually did a positive contribution. It didn't get to the mid-single-digit margin, i.e., 5%, what we're hoping for, but it wasn't that far away.

I think the other thing also within that, Lindsay, is your comment around mobilization, that was actually only a small net cost to us because we were actually paid for that aspect. What we were able to do was really manage our mobilization costs to basically fit within the mobilization fee we were afforded, and not go too much over.

That really assisted with the delivery over the last half.

Okay. No, that all makes sense.

Great. Thank you both.

Thank you very much. Really appreciate the question.

Good morning, Leigh. Good morning, Linda.

Thanks for taking my question. Just looking at slide 13 with Defense operations.

Obviously the plus 150 is on the existing contract. Sort of first question is, is there any kind of milestones ahead to kind of retest the size of that existing contract?

Then secondly, thinking about your point around opportunities to expand into other government-related assets and infrastructure projects, is that specific to the geographies that have been won already, and how should we be thinking about that as a potential contributor? Is '27 too early, is '28 too early?

I guess the scope of the opportunities there too. Thank you.

No worries at all, Ian. Thanks for the question.

Also, Ian, thank you very much for the work. I got a copy of the insights and presentation you were presenting around some of the markets that you face into, and really appreciate that.

That was a great read. In terms of Defense operations, no, we're still at this stage sort of just standing firm on that $240 million across the full year.

Couple of things to note there is obviously we haven't had a full year yet, as we've only had 5 months. We did see a strong uptick as volumes grow in the latter part of those 5 months, both with the mobilization, but we're also just trying to determine is that going to be something we're going to see in terms of seasonality.

Is it going to just be that slight bias in the second half associated with what sometimes happens with many clients, which is a push to spend in the latter part of the financial year. Still confident on the $240 million as a sort of minimum.

In terms of the minor capital works and project works, and this is a lot of their place. I think it's a great question to raise and go through.

There's certainly an opportunity not only in our existing regions, but right across Australia. We have 1,600-plus resources now which are defense certified and accredited across many trade disciplines.

We are sort of forming, and have formed, that multidisciplinary team from across our Utilities, Industrial, Telecommunications, and Defense area to sort of come together. That team started last month.

They are now starting to look at different opportunities, but those opportunities are not just limited to SA and NT. We are looking at, for example, is there telecommunications, or HV upgrades, or other works right across the geography of Australia.

We are certainly targeting that. Again, we're going to continue to be measured, in line with our risk appetite.

We don't want to rush to failure there. The greatest contribution we can provide for the business and our shareholders is going to be continuing to sort of generate that strong momentum out of the O&M work.

We are confident we'll win something in those projects and minor capital works space. I think that we'll start to see that contribution.

We've targeted January, Ian, is what we sort of said to the team. We'd like to sort of form your team, start to have a look at some of those opportunities, and we would earmark and have sort of targeted internally for a small contribution from those sort of coming into January in terms of their internal targets.

Very good. Then just maybe a follow-up for Linda just in terms of the capex kind of ahead of the defense mobilization.

Is that all in '27, or is there some incremental to come? Just backsolving your sort of maintenance capex guidance, looks like about another 20 kind of pre-tax to go into the SaaS platform, does that knock it on the head in FY '27, or is it still a little bit more to come?

The defense was done, in actual fact it's probably flowed through a little bit too much, and we've actually redirected that to some other BUs, just because that's a brand-new contract for us. No, that's done.

What we would be spending money on in terms of new deployments will be Yarra Valley Water, anything else new that we spend, but clearly nothing to the same scale as Defense, given how bigger contract that was.

Thank you. Then just on the SaaS program, sorry, I missed that point maybe.

Is it similar spend in FY '27 as '26 in terms of above the line or not? Yeah.

Yep. I think it'll be a little bit more because we are now in the sort of deployment phase, whereas last year was still initiation.

Having said that, I understand the sentiment, hence why I gave that guidance of that 1.5% envelope for maintenance, call it IT investment, what's in there. It's just the nasty accounting standard that requires me to expense an investment.

I see that as interchangeable with my BAU maintenance capex, and I provide that guidance, 1.5% of my revenue.

Very good. Thanks, Linda.

Thanks, Leigh. Congrats on the results.

Thank you, mate. Appreciate your support.

Thank you, Ian.

Good morning, Leigh and Linda. Thanks for taking the questions.

Plenty of them have been asked, but maybe just on Utilities, and I know you gave a bit of a comprehensive view of the opportunities out there, Leigh, but do you mind just giving any more sense of bigger tender opportunities similar to what you recently announced with Yarra Water, are there many of those sorts of opportunities in the near-term pipeline? Thank you.

No, thank you, Mitch. Appreciate your support, appreciate the question.

Look, Utilities is a growth area. We've got a number of these sort of O&M opportunities that do come through the pipeline.

We talked about last year I think at the half and talked about three, and we were successful in securing two of those that I was sort of previously referencing. We generally have a success rate across the business of about 30%, and that hasn't moved a lot over the period, and again we are quite diligent.

In terms of current Utility operations, there are a couple of those opportunities. I don't expect to see any of those major opportunities announced in the first half though, should we be successful.

The tender process for these is generally a 6-plus month process, but there are always a couple of other options that do come out. I'd be confident there's probably two or three coming through, and we should expect, like we did last year, to be announcing and confirming some sort of win within Utilities certainly over the course of the next 12 months.

Thank you. Just on M&A, I know you only have the keys technically for a few weeks now, but maybe just a quick update on RIE Group.

Obviously a small strategic bolt-on, but yeah, just keen to understand: one, yeah, how do you see the strategic benefits of that business; but two, how are you seeing the opportunities now you're actually owning it for a few weeks? Thanks, guys.

Yeah. No, thanks, Mitch.

It's really good. Linda and I both joined our Utility team with their annual conference in the Gold Coast a couple of weeks ago, and I again caught up with Jamie, the owner of the business, who now works for us, he and his wife.

It was great to catch up with them. For those who don't know the history here, RIE is an amazing business.

It's a small, family-run business and it probably had 40-odd people operating there at different times. They work for a tier 1 client base.

We're very impressed with the client contracts that they hold, not working for our peers, but actually working directly for the clients themselves, across, I said, traditional generation assets, coal, gas, but also the LPG, outside of oil. It was great to be able to have that come through.

We put the feelers out to our Utility, Transport, and other divisions, said, "Whilst we've got a bias and would rather do something more strategic and significant, we certainly didn't want to pass up on good strategic opportunities." RIE was one that we were keeping an eye on over the last sort of 12 to 18 months.

Our team in Utilities had known that business really well, being sort of heavily Queensland-biased in the executives, they've known that business, and we're very confident it would be a great fit. It was great to bring that in.

I think what we'll probably see is being able to hopefully leverage their client relationships, our balance sheet, our industrial capabilities to secure maybe some additional station maintenance, these sites, or some of these large shutdowns. We know from history, some of these shutdowns can be anywhere from $10 million to $30 million for a one-off shutdown.

Whilst RIE is small, the capabilities are strong, and when leveraged across our broader industrial base, I think we are confident, quite confident, that we'll be able to secure one or two of these contract opportunities over the next sort of 12 to 18 months to support that growth.

Oh, thank you. Thanks, Leigh and Linda, and congrats on the result.

Just one question just around work in hand. I think it was reported at $8.2 billion end of this period, and $9.2 billion in February.

Then if I look at the incremental contracts won during the period, I think it was $1 billion, and then you guys have earned about $1.245 billion. I'm just trying to make that math add up.

Am I incorrect or is my math incorrect? If you could help me step that through, that would be helpful.

No, you're not wrong, Nick. One of the things with work in hand, it's always at a point in time, and the organization draws down on that.

You have $1.3 billion of revenue in the second half of '26, $2.4 billion across the year. We are drawing down from that work in hand, which is why we importantly reference the extension options that exist.

I've seen in my 22 years, 90-odd percent of them go through extension options. You've got $8.2 billion or $8 billion in that sort of initial period, and then you've got another $4 $4.2 billion in extension, $6.2 billion in extension options.

There's about $14 billion in and about 5 times contract cover. I've seen some of the reports, we're not concerned that there is insufficient work in hand.

We've got 85% of our work that we need for this year already secured. We always challenge our BUs to go a little bit more aggressive in terms of their growth targets, but with certainly not 5 times contract cover and a number of opportunities that go well beyond that sort of 5-year period.

Feel very, very comfortable with the work in hands as it is.

Got it. Very clear.

Thank you. The second one is just around Defense.

Obviously, you've done an excellent job thus far mobilizing, congrats to you. I suppose from here, I'm just curious on what the key constraints for further growth is.

Is it around labor? Is it around the actual pipeline of work available to you from your client?

What are the things that are the key constraints to that business growing from where we are today and where it's run-rating today?

Are you specifically talking about Defense or Utilities, sorry, Nick?

Yes, Defense.

Defense. Look, I think, firstly, Defense, very similar to many of our other clients, has an aging infrastructure base, and they've been very open with their strategic plans and things around the significant upgrade of facilities, particularly those in the Northern Hemisphere, and hundreds of billions of dollars going into an upgrade of our capabilities.

I think we're certainly going to see the benefit of some of that investment, whether or not we choose to take part in the actual upgrade of those sites on the capital works if we were awarded and go for a pure EM services is one thing. I think the nature of our operations, being that we are maintaining the asset base in those allocated regions, means you are actually maintaining a base which will be invested in and continue to expand.

We would expect to see, as confirmed by our client, incremental increase associated with that investment and the expansion of the assets. There's of course the ability for us to take on those minor capital works and bid on those select programs, not only in our two areas, but right across the country.

A range of opportunities as new defense programs that often come through competitive tender processes. Again, very similar to what we see in the four areas I outlined in our growth agenda.

We have organic growth, which is generally driven by sort of inflationary adjustment across our contracts. You have additional spend as clients look to spend more in upgrading their programs, and being the O&M provider, it's not guaranteed, but you've certainly got a strong presence and capability.

Additional capital works and programs, we can selectively bid on, and then you have new contracts. I think that that is applicable across not only Defense, but across all of our markets and sectors.

Nick, the line was a bit bad, but I think I heard you also ask about the constraints for us accessing more of that defense opportunity. I would actually say that right now, the constraint is actually us, because we're still climbing that learning curve and understanding what that opportunity is set.

We're doing quite a lot of work internally actually understanding life on base and what those relationships are and who are the different providers that we can tap into. As Leigh mentioned, we have already stood up a much larger workforce than we need, and we are in the process of standing up more of a multidisciplinary team across our business as an area of focus.

Also I think putting together our Transport teams with our Defense teams creates more of that bandwidth, particularly around things like bidding and back-office, call it bench strength, to really try to drive that rather than build that capability from start. I think right now where we are, we're only 5 months in, we're still quite young at this, but we can see a lot of opportunity.

Yep, very positive. Okay.

Thank you very much. Thanks for your time, and congrats on the result.

Thank you. Thanks, Nick.

Good morning, Leigh and Linda. Most of my questions have already been asked, but maybe just a follow-up from Ian on Defense and those minor capital works opportunities.

Would it be fair to assume that these will be accretive to Defense margins going forward?

Look, thanks, Ollie. It's great to have a question.

Look forward to engaging with you over the course of the roadshow and beyond. Look, I can't comment specifically on Defense operations, but I think one of the attributes you generally expect is minor capital works as a sort of a lower-risk, lower-value sort of construction project.

We're not doing big dollar constructions, and in Service Stream, minor capital works generally sort of indicates that sort of $10 million of revenue is our ceiling. Before we look to have an alternative model where it might be alliance-style or cost-plus.

Generally what we find for those is one, you do target a higher margin, because there is some element, even though they're low-risk, there is some element of risk. We would be expecting a higher margin contribution for the works in their own right.

You are correct, what we also see, and this is evident across our Utilities, areas of gas, water, electricity, is that you do see incremental benefit because you've already got a base of indirect staff, not having to mobilize, etc. You can often see incremental and enhanced margins associated with successfully securing those minor capital works.

Great. Thanks, guys.

Congrats on the results.

Yep. Thank you, Ollie.

Look forward to catching up.

look, that's it from myself and Linda. We really appreciate everyone taking time.

I understand it's a busy day. We look forward to engaging with analysts and shareholders over the course of the next 2 weeks during our roadshow.

Thank you for joining us.