Good morning, everyone. Thank you for joining today, and welcome to today's webcast for Duratec Limited's full-year results presentation for FY '26.

My name is Adrienne Porter, Duratec's Corporate Planning and Investor Relations Manager. I would like to begin today by acknowledging the Noongar people, the traditional custodians of the lands on which we gather, and pay our respects to their elders, past, present, and emerging.

Joining me today are Chris Oates, our Managing Director, and Ashley Muirhead, our CFO. Please note that all participants are currently in a listen-only mode.

This morning, there will be a presentation, followed by a Q&A session. If you wish to ask a question via the webcast, please click on the blue hand displayed in the top right-hand corner of your screen, then type your question into the dialogue box that appears, and click submit.

I would now like to hand over the webcast to Chris, who will talk through Duratec's FY '26 highlights.

Thanks, Adrienne. Hi, everyone.

Welcome to Duratec's full-year results presentation, including a business update and outlook on all sectors and companies. We will start with a quick recap of our business history.

Here we get a snapshot of Duratec's growth since inception. Whilst our long-term CAGR still remains strong, our FY '26 revenue result was lower than anticipated due to the timing of some of the larger projects, which have now landed, but well later into the financial year than originally anticipated.

The overall result was still positive as our EBITDA, NPAT, and EPS are all improved from the prior year, despite the anticipated revenue being slightly down. With our order book at new record highs and subsidiary companies performing well, we expect to return to strong growth levels.

The key business drivers remain strongly active in all key market sectors, and our diversified operating model continues to be a strength, with revenue generated across multiple sectors, geographies, project sizes, and reoccurring maintenance streams. This balance helps reduce exposure to any single market cycle, whilst supporting more consistent earnings.

Looking now at our portfolio, FY '26 saw the group's continued expansion through a combination of organic growth initiatives and strategic acquisitions that broadened our capability, strengthened our east coast presence, and enhanced our service offering across asset life cycle. The award of a $45 million contract with Lihir Gold in Papua New Guinea marked an important milestone in Duratec's expansion into international energy and resources markets, demonstrating the breadth of expertise now available across the group.

Acquisitions completed during the year included EIG, which strengthens our position across electrical and fuel infrastructure; RJK Resources, which adds specialist inspection and testing capability; Hunter Coatings, which enhances our self-perform protective coatings, structural integrity, and concrete remediation offering; and Pacific Welding Australia, which expands the group's project-based welding, mechanical services, and specialist fabrication capability. During the year, we also established DEX Energy Solutions, further strengthening our capability across the energy sector and supporting a broader range of asset life cycle services.

These investments continue to expand our participation across the full asset life cycle, from technical advisory, inspection, and engineering through construction, remediation, maintenance, asset integrity, and ultimately, decommissioning. This broader capability enables early engagement with clients and supports longer-term relationships across the life of critical infrastructure.

Our acquisition strategy remains focused on targeted capability-led opportunities that complement the existing group, strengthen self-perform delivery, and add specialized technical expertise. Cultural alignment and long-term strategic fit remain key considerations in every acquisition decision.

Whilst the initial acquisition investments have been relatively modest, we expect these new businesses to contribute meaningfully as they scale and leverage Duratec's national footprint, client relationships, and collaborative operating model. FY '26 was a year of positioning the business for the next phase of growth and delivery.

While revenue was broadly flat, we expanded gross margins from 18.6% to 20.5% and increased normalized EBITDA by 10.3%, highlighting the benefits of our focus on higher quality work and disciplined execution. We strengthened the group through four acquisitions and the establishment of DEX Energy Solutions and A-Tech Facades, broadened our market reach with our ISO 19443 accreditation, opening opportunities within the AUKUS nuclear supply chain, and delivered another year of strong safety performance, with zero lost-time injuries.

Most importantly, we converted tenders into the record order book of $650.8 million, up 66.9% from FY '25, providing a solid foundation for the year ahead. Looking to '27, our focus shifts from winning work to delivering it.

A substantial portion of the FY '27 revenue is already secured through the order book, supplemented by reoccurring annuity and MSA revenue that sits outside of that order book. We have multiple near-term wins and are also working on converting the number of current ECIs we have been engaged on.

We will also benefit from a full-year contribution from acquisitions completed during FY '26. Major projects, including Diamantina Wharf, Darwin Ship Lift, Lihir Gold plug and abandonment, and the Orica Hunter Valley Hydrogen Hub, are now moving into delivery, positioning the business for a strong year of execution and operational performance.

Taking advantage of operational leverage will also be a strong focus throughout the year. Moving now to our financial highlights.

Revenue delivered in FY '26 was $570.3 million, which was broadly in line with the previous year, driven primarily due to project timing and delivery phasings. However, normalized EBITDA, normalized EBITDA margins, and NPAT all delivered record results.

Normalized EBITDA increased to $58.5 million, up 10.5% on FY '25. Overall normalized EBITDA margins has lifted to 10.3%, and NPAT has increased to $23.8 million, which is up 4.1% on the prior year.

Later in the report, you will also see that we have provided sector EBITDA margin performance for each of the reporting sectors. Earnings per share was 9.25 cents, up 1.6 cents on FY '25, and the board has declared a final dividend of 2.5 cents per share, fully franked, which brings the total dividends for FY '26 to 4.25 cents per share, as we continue our balance between returns to shareholders and retained funds for growth.

Our order book is at record levels, tender activity remains exceptionally strong, and our pipeline has reached an all-time high. I'll hand over to Ashley Muirhead, who will speak to the FY '26 financial results.

Thanks, Chris. Good morning, everyone.

Revenue of $570.3 million was broadly in line with FY '25. A highlight of the year was the strong growth achieved across building and facades, energy, and emerging sectors, reflecting continued demand for Duratec's specialist capabilities.

The strength of our diversified operating model was evident, with the growth in these sectors offsetting project timing impacts experienced in the defence and mining and industrial sectors. Importantly, we continue to improve the quality of earnings across the group.

Gross profit increased to $116.9 million, with gross margin expanding from 18.6% to 20.5%. This reflects disciplined project selection, strong project execution, and the continued expansion of our self-perform capability, both organically and through targeted acquisitions.

The margin improvements flowed through to earnings, with normalized EBITDA increasing to $58.5 million and the normalized EBITDA margin increasing to 10.3%. While continuing to invest in acquisitions, business systems, and integration to support future growth, we also delivered improved shareholder returns, with net profit after tax increasing to $23.8 million, EPS increasing to 9.25 cents, and the fully franked dividend maintained at 4.25 cents per share.

Overall, FY '26 demonstrates our ability to improve profitability, strengthen margins, and grow earnings, while continuing to invest in the future growth of our business. Turning to cash, the group finished the year with a strong cash balance of $78.8 million.

We generated $37.3 million of operating cash flow before interest and tax during the year, representing a solid cash conversion of 74%. The result was impacted by the timing of project milestone receipts and operational payments around year-end, which influenced working capital movements.

Importantly, cash conversion remains strong, working capital was well managed, and the business continues to generate healthy operating cash flows. A key focus during FY '26 was investing for future growth.

We invested $12.1 million in plant and equipment to support operational capability, and deployed a further $14.4 million into business acquisitions as part of our growth strategy. Those investments strengthen our self-perform capability and expand our market reach.

We paid $9.4 million in fully franked dividends to shareholders during FY '26. The strength of our cash generation continues to provide flexibility to invest in growth, while maintaining shareholder returns.

Turning to the balance sheet, Duratec remains in a strong financial position, with net assets increasing to 26% to $93.8 million during FY '26. This reflects both the group's operating performance and our continued investment in strategic growth opportunities.

During the year, total assets increased to $302 million, reflecting acquisitions completed during the year, together with ongoing investment in operational capability. Acquisition activity increased intangible assets to $32.7 million and resulted in contingent consideration of $10 million linked to agreed performance milestones.

Importantly, we closed the year with $78.8 million in cash and total funding facilities of $343.5 million, supporting borrowings, bank guarantees, and bonding requirements. With 64% of facilities remaining undrawn, the group retains significant liquidity and funding flexibility to support future growth initiatives and project delivery requirements.

Contract assets increased during the year due to higher project activity and revenue recognized on milestones not yet invoiced at year-end. Overall, our balance sheet remains well positioned to support organic growth, pursue strategic acquisitions, and continue investing in operational capability.

Combined with our strong funding capacity and record order book entering FY '27, the group is well positioned to execute on the opportunities ahead. I will now hand back to Chris to cover the operational highlights.

Thanks, Ashley. Ensuring our people's safety and well-being is vital to Duratec's success.

Throughout FY '26, we continued to invest in our people, safety, and sustainable foundations. Our workforce, which has grown more recently to a total of 1,580 through a combination of organic growth and acquisition activity, was supported by the implementation of a new workforce management system, refreshed leadership and technical development programs, and the introduction of a structured career pathways to support capability development across the group.

We also renewed our vision, mission, and values, published our inaugural sustainability report, launched our 'Reflect' Reconciliation Action Plan, endorsed by Reconciliation Australia, and established a 2035 Scope 1 and 2 emissions intensity reduction target. These initiatives reflect our commitment to building a strong, sustainable business that supports our people, clients, communities, and long-term growth objectives.

Moving now to Defence performance and outlook. Defence delivered an FY '26 revenue of $158 million, reflecting completion of major FY '25 estate programs, partially offset by the commencement of the $300 million Diamantina Wharf upgrade, which underpins Defence revenue through FY '27 to '29.

This sector delivered an improved gross margin of 17.4% and an increased EBITDA margin of 8.4% through disciplined project selection, effective cost management, and a favorable mix of work. A key milestone during the year was the commencement of the $300 million HMAS Stirling Diamantina Wharf upgrade through the Duratec Ertech joint venture, which further strengthens our position to support future AUKUS-related infrastructure investments.

We also expanded our fuel and marine infrastructure capability through the successful delivery of complex Defence projects, including HMAS Coonawarra. Importantly, we achieved ISO 19443 accreditation, the nuclear-specific quality standards for participation in the nuclear supply chain, reinforcing our capability to operate in highly regulated and strategically important environments.

Looking ahead, the outlook for Defence sector remains positive, underpinned by sustained Australian investment in defence infrastructure and strategic capability programs. With a strong pipeline across estate upgrades, fuel and marine infrastructure, and sustainment works, we believe Duratec is well positioned to benefit from AUKUS-related investments and increasing demand for larger and more complex project delivery.

On to Mining and Industrial. As you can see from a performance perspective, the revenue was at $114.3 million.

While this was lower than the prior year, the sector increased its gross margins to 23% through a greater proportion of higher-valued structural integrity and maintenance work. During the year, we strengthened relationships with Tier 1 clients like BHP and Hancock Iron Ore, supporting a diversified pipeline of opportunities.

Key projects progressed well, including the Rio Tinto's high-grade scree plant project, where additional scope was secured, alongside the delivery of the Yuri renewable hydrogen and ammonium project, and the BHP Under Harbour tunnel remediation works. We also expanded our capability and geographical footprint through the acquisition of Hunter Coatings in the Hunter Valley, and the establishment of a new facility in Port Hedland, further enhancing our ability to support clients across key mining and industrial regions.

Looking ahead, the outlook still remains positive, underpinned by ongoing demand for remediation, maintenance, and asset integrity services across aging infrastructure. With a strong project pipeline across mining, industrial, rail, port, and energy markets, together with growing opportunities across the East Coast of South Australia, Queensland, Northern Territory, we remain focused on converting strategic client relationships into long-term contracts, while maintaining a balanced mix of major projects and reoccurring maintenance works.

Moving to Buildings and Facades, which delivered an outstanding result in FY '26 with record revenues of $138.8 million, which is up 24.1% on last year, to deliver a gross margin of 19.9%, supported by strong demand across facade remediation, heritage restoration, and building remediation projects. A key feature of the year was our ability to convert ECIs into main works contracts, including the Ayers House restoration project in South Australia, and a major high-rise facade refurbishment in Brisbane CBD.

Across the country, we secured and progressed several significant projects, including Canberra's largest residential recladding project at Glebe Park Residences, a large-scale live apartment facade rectification work in South Australia, the heritage-marked City Tattersalls Club remediation project in New South Wales, and a landmark Sydney CBD remediation project. We also continue to broaden our technical capability and national delivery model, culminating in the launch of A-Tech Facades, which expands our offering beyond remediation into the delivery of new build facade systems, significantly broadening our addressable market.

Looking ahead, we see strong demand across remediation, heritage restoration, roofing, glazing, and building upgrade projects, with increasing ECI activity supporting participation in larger and more complex opportunities. The sector is well positioned to build on the momentum achieved in FY '26.

FY '26 was a defining year for our Energy sector as we continued to strengthen our position as a diversified provider of maintenance, asset integrity, fuel infrastructure, and decommissioning services. Despite the slower start to the financial year, revenue for the sector increased by 11% to $91.6 million, supported by strong demand across maintenance, engineering, and fuel infrastructure services.

During the year, we significantly expanded our capability through the acquisitions of EIG Australia, RJK Resources, and Pacific Welding Australia, as well as the establishment of DEX Energy Solutions, creating a more integrated platform capable of supporting clients throughout the full asset life cycle. We successfully delivered several strategically important projects, including the Santos Varanus Island V-Tank refurbishment projects, and the Harriet Alpha decommissioning project, the King Bay supply base wharf refurbishment for Woodside, and ongoing works at the INPEX Ichthys LNG facility.

Looking ahead, we enter FY '27 with strong momentum, supported by a growing portfolio of maintenance, fabrication, fuel infrastructure, and decommissioning opportunities. Key projects include the Lihir Gold plug and abandonment campaign in PNG, the construction management contract at Orica's Hunter Valley Hydrogen Hub, and a national services agreement covering tank and fixed asset maintenance for a major fuel infrastructure provider across Australia and New Zealand.

We're also providing ECI services for the design of Perth Airport's jet fuel expansion project, and have secured stage two fuel infrastructure works at Sydney Airport. Together with our expanding maintenance contracts and strong relationships with major operators, we believe the sector is well positioned for growth across Australia and the Asia-Pacific region.

Finishing off with our sector-based updates with our Emerging Sectors, which include marine, transport infrastructure, and water infrastructure. Revenue achieved by our Emerging Sectors was $67.8 million, an increase of 11.8% on the prior year, with an improved gross margin of 18.2%.

As we expanded our presence across marine, transport, and water infrastructure markets, the result was driven by a more diversified portfolio of projects and continued investment in capability, market expansion, and national delivery. During the year, we secured several significant project awards, including the Darwin Ship Lift blast and paint facility, the Kwinana Bulk Jetty cathodic protection works, and electrical infrastructure works for CSIRO.

We also continue to strengthen our national marine capability through project delivery across Western Australia, Queensland, and Victoria, while expanding our exposure to new clients and end markets, including high-security government infrastructure opportunities through our inclusion on the Department of Home Affairs panel. Looking ahead, the outlook remains positive, supported by a strong pipeline across marine, water, and transport infrastructure markets, continued government investment in critical infrastructure, and increasing demand for marine asset upgrades.

With growing client relationships, expanding capability, and a broader addressable market, we are well positioned to pursue larger and more complex infrastructure opportunities in FY '27 and well beyond. We will now look at our updates by entity.

During the year, MEnD continued to strengthen its role as Duratec's specialist technical advisory, inspection, and asset integrity business, with demand growing across all major sectors. MEnD expanded its national capability through the establishment of a Brisbane laboratory, and further enhanced its technical offering through the acquisition and integration of RJK Resources, adding specialist non-destructive testing, inspection, and asset assurance capabilities.

The business also increased its involvement in Defence advisory services, and secured its first international engineering project through the Newmont Lihir main wharf and ro-ro remediation study in Papua New Guinea. Looking ahead, we see continued demand for asset integrity, inspection, and technical advisory services, supported by ongoing investment in digital engineering, laboratory testing, and inspection technologies.

Importantly, MEnD supports Duratec's early contract involvement model, enabling earlier client engagement and leveraging the group's national footprint and multidisciplinary capability to convert advisory opportunities into long-term project and maintenance work. WPF continued to strengthen its position as a key provider of fabrication, welding, mechanical, and maintenance services to the energy sector.

During the year, the business expanded its east coast footprint through continued growth in Queensland and the acquisition of Pacific Welding Australia, further enhancing its national self-perform capability. Looking ahead, strong relationships with major operators, including Chevron, Woodside, INPEX, Santos, McDermott, and APA Group, support a growing pipeline of maintenance, fabrication, and decommissioning opportunities.

Combined with the enhanced capability delivered through the PWA acquisition, WPF is well positioned to support larger and more complex energy and industrial projects across Australia. EIG has integrated well into the Duratec Group, and during the year continued to strengthen our capability across fuel infrastructure, electrical, and mechanical services.

EIG has enhanced Duratec's integrated energy offering and asset life cycle capability, while increasing collab- collaboration across the group on larger fuel infrastructure opportunities, including Perth Airport's jet fuel expansion program. Looking ahead, EIG is supported by a strong pipeline of opportunities, including recently awarded Rio Tinto bulk lubrication facility and fuel infrastructure upgrade projects.

Continued investment in engineering capability, specialist fuel systems, master metering solutions, mobile bunkering technology, and maintenance services, together with the support of Duratec's national platform and complementary energy business, positions EIG to pursue larger and more complex infrastructure opportunities and continue the group's long-term objective of becoming a leading asset life cycle partner to the energy sector. During the year, as part of our B&F offering, we launched A-Tech Facades to expand Duratec's capability beyond remediation and into the new build facade market, significantly broadening our addressable market.

The business brings specialist expertise across design, procurement, fabrication, and installation, complementing Duratec's established facade remediation capability. A-Tech combines in-house design, digital engineering, and national delivery expertise to create an integrated facade delivery model capable of supporting larger and more complex projects.

Looking ahead, we see growing demand for specialist and design-led facade solutions, and believe A-Tech provides a scalable platform for long-term growth in the facade sector. By leveraging BIM, digital engineering, and the broader capabilities of the group, A-Tech is well positioned to enhance efficiency and strengthen client relationships.

During the year, we established DEX Energy Solutions to expand our capability into higher-value energy services, creating a specialist platform focused on engineering, well abandonment, decommissioning, and operations across the energy asset life cycle. A key milestone during the year was the mobilization and delivery of a major plug and abandonment campaign at Newmont's Lihir operations in PNG.

Looking ahead, we see growing opportunities across Australia and PNG in decommissioning, well abandonment, operations and maintenance, and broader energy infrastructure services. DEX's integrated delivery model, which combines engineering and field execution under a single management structure, together with its strategic partnerships and specialist expertise, positions the business to support increasingly complex projects and further expand Duratec's presence across Australia, PNG, and the broader Asia-Pacific energy market.

Looking now at DDR Australia, Duratec's Aboriginal and Torres Strait Islander associated business. The business further enhanced its self-perform capability through the integration of RP Construction, and targeted investment in plant and equipment, improving its ability to deliver civil and concrete works across Defence, government, and infrastructure markets.

A key milestone was DDR's expansion into the Northern Territory and commencement of the Darwin Ship Lift project, which provides a significant runway of work, while strengthening DDR's national presence. During the year, DDR continued to deliver strong social procurement outcomes, with Aboriginal people representing more than 25% of its workforce, and Aboriginal enterprises accounting for more than 30% of supply chain spend.

Looking ahead, the business remains focused on disciplined growth across Western Australia, Queensland, and the Northern Territory, and is supported by a solid order book and strong pipeline of defence and government infrastructure opportunities. Looking now at our master services agreements and annuity style contracts, which made up 32.5% of revenue in FY '26, compared to 31% in FY '25.

These agreements reflect the strength of our long-standing client relationships. Many of the major clients have partnered with Duratec for more than a decade, providing repeat work opportunities, increasing revenue visibility, and creating meaningful barriers to entry.

We anticipate MSA works to grow and continue to strengthen future revenue visibility, and create opportunities for repeat work. This revenue sits outside of the order book.

Now turning to pipeline and outlook for the remainder of the year. Duratec's order book has grown to a record level of $650.8 million, representing a 67% increase from last year.

During FY '27, we anticipate delivering between 70% to 80% of this, along with the standing starts in MSA works. The tender and pipeline outlook are 1.3 and $4.8 billion respectively, reflecting a substantial pipeline of opportunities across our core markets.

Whilst the order book has grown 67%, tender sections still remain very strong, and even after the conversion of a number of larger opportunities. This truly shows our expanding business is very well placed for FY '27 and well beyond.

The pipeline has increased slightly, and we anticipate this to continue to grow as we expand our service offerings and grow capacity and capability. Turning to the outlook, we enter FY '27 with a record order book of $650 million.

It's also important to note that it's only recently that a number of these projects have moved into the execution phase, providing a strong platform for continued growth well into FY '27. These include the HMAS Stirling Diamantina Wharf upgrade, Lihir plug and abandonment campaign in PNG, the Darwin Ship Lift blast and paint facility, Kwinana Bulk Jetty cathodic protection works, and electrical infrastructure works for CSIRO.

Together, these projects provide a solid base of activity across Defence, Energy, and Emerging sectors. We also expect an increased contribution from our portfolio businesses and recent investments.

EIG is progressing opportunities, including Rio Tinto bulk lubrication facility and fuel infrastructure upgrades, while WPF, PWA, and DEX are expanding our fabrication, maintenance, and decommissioning capabilities. The quality of our revenue base also continues to strengthen.

MSA and annuity-style contracts represent 32.5% of FY '26, up from 31% in FY '25, and sit outside of the order book. This reoccurring work, together with growing maintenance and sustainment activity, supports revenue visibility and earnings resilience.

Looking further ahead, significant investment across Defence, Energy, Mining and Industrial, and critical infrastructure continues to support the demand. Our position is further strengthened by the commencement of HMAS Stirling wharf upgrade, increasing AUKUS-related opportunities, and the significant investment planned for the $24 billion Henderson defence precinct.

These opportunities are complemented by a growing pipeline of major marine infrastructure projects, as well as expanding prospects across energy, fuel, water, and transport sectors. We are also participating more broadly across the asset life cycle.

The addition of engineering, specialist inspection, fabrication, maintenance, asset integrity, and decommissioning capabilities allows us to engage earlier, self-perform more work, and remain involved for longer. Recent ECI conversions are evidence of the value of our early engagement strategy, creating significant follow-on delivery opportunities that will support performance in FY '27, '28, and well beyond.

With a cash balance of $78.8 million, a growing portfolio of complementary businesses, and continued investment in self-perform capabilities, the group retains flexibility to pursue disciplined organic expansion and strategic acquisition opportunities. Taken together, these factors position Duratec to pursue larger and more complex projects, while further diversifying the group's earning base.

That concludes our presentation for today, and I would like to hand over to Adrienne to moderate the Q&A session. Before I do, I would like to sincerely thank our people across the group for their hard work, commitment, and contribution throughout FY '26.

The strength of Duratec lies in the capability and dedication of the entire team, whose continued focus on safety, quality, and delivery excellence underpins our success and positions the business for future growth. I thank you all.

Thanks, Chris. Um just a reminder to everybody, if you would like to ask a question via the webcast, um please click on the blue hand that's displayed in the top right-hand corner of your screen, then type your question into the dialogue box that appears, and click submit.

Um we'll now move to the first question. Actually, before I jump into the first question, I might just um remind everybody that a copy of the webcast, along with the presentation, will be uploaded to Duratec's website uh following the meeting.

Um now, looking at the questions we've received, um the first question is a multipart question from Lyndsey Bettles at Goldman Sachs. I'll read the question in full, and then I'll break it down.

It's a five-part question, and um Chris, you can

um uh

address it in stages. The question in full is um First part, with regards to the bridge to FY '27, looking at the order book of $650 million, if we um subtract the $150 million for Diamantina over 2 years, and then also look at the MSAs, $185 million, plus revenue and all the ECI work, and medium to large products that are dropping in the second half of FY '27, um is there anything um wrong in this maths calculation?

Uh second part of the question relates to medium and larger opportunities in the second half of the year, looking for some more color around the 13 ECIs. Um Also with uh regards the value of those ECIs, confirming if the $280 million is in the order book, and also the timing on the potential of converting those ECIs.

Then a final part to that question is with regards to margin trajectory in FY '27, if there's any specific um segment call-outs that you'd like to address. If you want to maybe take it from that first part.

No worries. Thanks for that, and um yeah, we'll go through all of those parts to those questions.

If we start off with the bridge to the '27, I I guess in reference to consensus numbers and taking the order book to to that part. The order book sits at 650, as we've uh outlined there, which is probably the absolute strength of the of the year that we've had, taking it from 400 to 650.

Then we break that down, and we go, yes, some of that goes through to FY '28, which is really good. Um then we're left, I think the way the question was asked, that at about $500 million revenue to be delivered in FY '27, plus the MSAs.

I think the the question relates that at about $185 million. This is all about maths um and that's just all the stats that we've got out there, you get yourself into the the sixes.

How do we bridge the gap? Yes.

It's pretty um it it's probably all the data's there. We got $1.3 billion worth of tenders that we do come through.

We always talk about our win rate being 1 in 3, but on that ECI work, it's exceptionally stronger, and uh some of those projects are just one for one on the win win rate. We do expect some more to be dropping from now onwards.

Um and I'll probably just jump into some of those ECIs as well, because we've we've called out 13 of them at $280 million. They, and the timing of them, is happening at all sorts of periods, as you can imagine.

Like there's there's one due relatively soon, um probably on the smaller scale that wouldn't be announced. Um and then behind that we'd we'd expect another one fairly soon after that as well, more in the building and facade space, cuz that's where a fair few, by number, are.

Um obviously, one of the bigger ones that's inside that will be um the uh the the Perth Airport project we're working on. It's a very low number as in uh 3.5 mil or half of our proportion of that that sits inside the order book right now.

The rest of it's in tenders, and it is quite a big part of that, and uh it's quite a complex job, fuel-related job. Everything we do in it, I think why we won the job, but we'd expect that to come through if timing's anything to go by as what we hear in the second half.

That's um and and that's obviously we have plenty of work to do in between now and then. That added to it will populate um some pretty big numbers back into the order book.

Um and so we'd expect to be holding that order book up and about along with delivering some pretty strong revenue. Um I think yeah, and just to confirm, too, that the $280 million, that was one part of that question, is is not in the order book.

It is in the tenders. That that's the way we're always going to call it out cuz it's not a job till it's a job.

Um and that probably answered all the way through that um question there, I think. Sorry, the margin trajectory in FY '27, that's the last part of that question.

Uh yeah, we've got If we run through that, and I think that question pops up again, I'll I can answer that um part of that as well. In Defence, we've got a yeah, I'll just talk gross margins and EBITDA margins, round it up to overall EBITDA as well.

We have Defence at 17.4. That's up.

That that's a really strong part. It has been there before.

Um up at that, we were coming off a base of 13. Obviously, the revenue's come down, but we have secured the circa $300 million job by DE JV.

We'd obviously expect us to to bounce back strongly from a revenue perspective. We do that at a margin of around 17, we're going really well.

We expect that to happen. Um when the volume goes up, then the EBITDA margin at the end of that, which is 8.4, should go up accordingly.

Obviously, with the overhead proportion, that doesn't need to rise on that journey um of increasing the revenue. M&I, uh so that's our mining business, 23.

That's gone up a bit, and basically, the the churn of all the the small to medium jobs is is around that margin, sometimes a little bit more uh than that, but that's probably about right. If we do grow some strong revenue, that margin can come down.

We're not anticipating that at this stage. Um that translates to a EBITDA margin of 8.1.

That's a bit lower. On that journey of FY '26, we were probably expecting to grow mining more than what we thought, um and so we we had uh probably some overheads there.

The structure probably wasn't exactly right for what we were doing, but we do expect that to grow now, and we we've readjusted our how we view that going forward, again, we'd probably want that EBITDA margin to come up a bit, as it should, but generally the gross margin's about right. Building and Facades has had a an absolute uh good year, and we expect that to continue.

That's at 19.9, doing a lot of self-performing there. Uh EBITDA margin's 9.4, so that's uh that's good, and um that could come up a little bit, too, on that journey, depending on the mix of jobs that we've got.

Energy's probably the interesting one there, and I'm going to answer another question that's coming, uh is 25% with an EBITDA margin of 14.7. If we have a quick look at that, too, with what what's happening there is we went from $27 million in the first half to $64 million in the second half to round off at 91.

That that as a percentage from half to half is a huge difference, and this is some of those projects coming through, one particularly, our uh plug and abandonment campaign in PNG. The mix of that has come down slightly.

We still expect Energy to be in the 20s uh as as we grow, but we are growing significantly there as well. Then really, you look at EBITDA at uh 14%, 14.7%.

Again, we would want to hold that. Maybe we can do something good there, but that that's definitely um a huge area of growth for us, and we would always want to be in the 20s for Energy.

Lastly, Emerging, 18.2% um gross margin into a 3.2%. That's a bit lower.

It did have some more overheads in there uh in and around a little bit of those acquisitions, but probably had a had some one-offs and some uh parts to that. We want to see that EBITDA margin rise a little bit, um and the gross margins could come up a little bit, depending, again, on the mix of work we've got.

I think I might have answered uh a few of the second questions, but if you could take us through that as well, Adrienne.

Sure. Thanks, Chris.

The second question from Ebrahim Makda at Evans & Partners is also a multipart question, and as Chris alluded, um probably has been in some part addressed in his previous response there. I'll read the full question.

Um First part is, can you share underlying PBT and NPAT? The second part is, any more capability gaps that you deem attractive via M&A?

Part three is, gross margins in Energy fell year-on-year. Can you provide some guidance as to why, and what we can expect gross margin uh for Energy in FY '27?

Um The next part relates to revenue and the 13 ECIs. Uh So, what is the revenue for the 13 ECIs contributing in FY '27, and confirming the ECI um revenue is outside the order book.

The final part relates to the opportunity for near-term tenders at Henderson. I think you've probably covered a good portion of that, Chris, but I might just um throw to Ashley for the the question around the underlying PBT and NPAT, and then maybe we can back to you to um to cover off anything else that you think is um appropriate.

Yeah?

Yeah. Thanks, Adrienne.

Um if we were reporting normalized net profit after tax, then there would be an adjustment for the one-off costs in relation to the four acquisitions and the business system investments. That would result in the net profit after tax, um or the underlying net profit after tax, being approximately $27 million.

Thanks, Ashley. Chris?

No worries. Um I'll probably There's one part that uh we of the question there relating to some of the projects and and I guess the topping up of all, the the orders or the tenders, right?

We're at 1.3. That that's still relatively strong considering a lot were won and lost in that period before, right?

We won our fair share. We got the order book from 400 to 650.

What's the stuff ahead? A lot of this isn't in the tenders, by the way, that because we're only really putting it across from pipeline to tenders when it's, when we're actually tendering on it, meaning it's getting near term.

This is just a macro probably look at some of the stuff that's out there that we are targeting and we will be looking at. We obviously have our uh conversion of the ECI at Perth Airport, so that's a big number.

That is in tenders. Some of the other things working that are around, by the way, Kwinana Westport, we have If we If we look down, this is in uh Western Australia there, there's there's a massive upgrade.

There's uh Kwinana Bulk Terminal, that's coming out, and that's in the EOI phase now that we're um part of. That's quite a large job, uh a very large job.

Next door to that is Henderson, so that's If everyone's probably following the news on that, there's $24 billion planned to spend. That number has just been revised, or other people think it's a lot more.

There's a heck of a lot of work that we believe we can do. We work a lot in that Cockburn Sound.

We're obviously doing a lot of work over at Garden Island. We think um we should be a uh, we can tender, certainly hard hard at it.

We think we will be um preferred to some degree in that space. We've also got that ISO accreditation, 19443, which allows us in that nuclear supply chain.

That that's a that's a big target for us. We have uh lots of work with Santos.

There's some term maintenance contracts we think we we've lined up well for. Uh there's other work at Garden Island.

There's plenty of other things going on. That's obviously targeted with an $8 billion spend.

There's uh a couple of fuel facilities coming up in Sydney, again, right right up our street for what we do. We There's Brisbane Airport doing a big fuel upgrade.

There's just other fuel upgrades that we're uh working on with uh multiple clients uh around Australia. US defence spend, that's another big target.

That's That's barely in our pipeline at all, but we do we uh see that as uh a place we can certainly play. PNG opportunities.

Um we we are working our way through the one job. MEnD uh has won another project, we're wrapped with that, and we think there's still a lot to play up there.

Um I think that's probably covered off that.

Great. Thanks, Chris.

Um just moving then on to the next question, which is from Peter Donovan at Argonaut. Uh Question around uh margins.

Peter asks, "Margins are at record levels. Do you expect these to sorry, do you expect to keep margins looking forward, and how should we look at margins across the sectors and at a group level?"

Yeah. That's uh I I've probably touched on them individually a bit, and then just to round it off, is that yeah, we we had a good year uh and got the margin from 18% to 20%.

We think that is sustainable, particularly as um, we we've we the acquisitions we've made, if you could say, RJK, EIG, PWA, they're uh on the higher end of the margin profile. Part of that is we've we internalized some of the jobs, and with that's our offering to the client, is we know what we're doing, we can get these jobs done, then our margin can go up because it's more self-performed.

That's our target. We think and believe those gross margins are very sustainable.

Obviously, and we've I've probably said this plenty of times, and we we haven't had the opportunity to take advantage of operational leverage yet, and um but when we do look at the order book and we see that, that definitely can play out, and and that's us adding um a fair chunk of revenue from where we were in '26 to '27, uh and then completing or performing well at that. That obviously is a a good gross margin, from a corporate overhead perspective.

We collide that, we did we the business is set up to handle this this type of revenue into the sevens, we feel we can uh translate that into a pretty good EBITDA when it all comes down to it. It's what what went it's not lost on us.

We have targeted this for some time, and the beauty of '26, despite perhaps the uh numbers or the revenue wasn't where we wanted it to be, the order book goes from 400 to 650. That is what uh what what we would look at '26 and say quite a phenomenal set-up year.

The other point to that probably is we've won a lot of that towards the end of the FY as well. If we look at that, that that, the run rate now is up where we, wanted it to be, and uh and that's, I guess, the beauty of uh the position that we're in now and looking forward.

Just great. Thanks, Chris.

Um next question is from Simon Hinsley at NWR. Um and you may have also addressed this in in part.

Um Simon asks, uh "Just to clarify, is it right to say, with a $650 million order book, which you may convert 75%, plus the MSAs of $200 million, gets you close to $750 million already? Is it Is it a fair way to look at the standing start for FY '27 in terms of revenue?"

Yeah. I think I went through that earlier on, and and like that you can dice the math a few different ways, but it's um it's there, right?

You go the order book's there, the 650's there. There is part of that is um DDR in there as well, which which we don't account for at the top, obviously, with the revenue side of that.

Then you convert your the the 600 um by that 75%, yet, and we, call it out as 70% to 80%. These jobs are underway now, we're not expecting that slippage to occur.

Um Then you add your MSA work. Yep.

You automatically get yourself to some pretty solid numbers, which call it a standing start or however we want to look at it, but we are we've never been this well placed. That's probably very clear.

If you go back through the the the history of the order book, and then you try and relate order book, cuz the order book is what we're going to do. Um, and if you go back through those years, we absolutely have not been in this position, so that's the beauty of it.

All of the math that that I think these questions are alluding to is there. Um and so, yeah, we we are uh ha- have the best standing start, by a long shot, than we ever have uh in the history of the company.

Great. Thanks, Chris.

Um the next question is from Matthew Chen at Moelis, and he asks, um, "Just some interest around the color on the movement of contract assets." I might pass to um to Ashley just to uh respond to that.

Yep. Sure, no problem.

Contract assets increased to $53.2 million, and this was driven by increased project activity at year-end, and revenue recognized on contract milestones not yet invoiced.

Great. Thank you.

Um another question from Peter Donovan at Argonaut uh around NPAT margin. Uh Peter's asking, "In terms of NPAT margin, what do you expect going forward?

Will it stay the same?" Uh we

we'd like to think we'd get some upside, and I've probably just gone through that as well in the sense of just going, if we hold our gross margins up, and we believe like the the order book that we have now supports a good margin, because um probably goes through You can You can break it all into the sectors. It's coming from the right sectors.

We've obviously got the gross margin up in Defence. Again, if we get that bit right and it and, the business has been set up to do a little bit more.

We had slippage throughout '26, obviously, for some of those majors, we're set up, we don't expect too much more corporate costs. Obviously, that can tumble through right down to the bottom.

I won't go into any percentages, but everyone's probably got their own version of how to get the math there, but we we definitely are, and it's probably from day one why people are interested in our business, cuz we are high margin. We can take advantage of operational leverage.

We just got to have the work there. We feel we've got the work there.

The pipeline looking forward's huge as well. Hopefully we'll be able to address that NPAT margin in a positive sense uh on that journey throughout this year and well beyond.

That's great. Um just looking at the uh the questions that have come in, I think we're down to the last question, which I'll put to you in just a moment.

Just a reminder to participants, if there were any further questions, if you want to click on that blue hand in the top right-hand corner of your screen, type your question into the dialogue box, and hit submit. Um I'll move to the last question in in case anything else comes in in the meantime, Chris.

It's a question from Sam Titmus at Taylor Collison, and Sam is asking, "Is there any update in relation to nuclear regulatory compliance facility at HMAS Stirling?" Uh the

that's, yeah, the interesting thing, and it's well beyond probably what we're just receivers of this type of uh information and uh position. That like what what is clear, and it will happen, is that in that supply chain for the nuclear uh work, if you could say, will be ISO 19443.

It's obviously got a strong interest. There's not many people with it.

It is extremely complex. Um that, and we've we've we've got that accreditation.

We've just been audited on that as well. We're probably the only company really fulfilling or operating underneath that at the moment, and so that that's to do with the work here.

It's still got a bit to play out from the regulators down to to the licenses and what zones there are. I think Osborne uh in SA was the first one to get tagged as uh in in zone three.

Uh that's all that public information, if people want to look it up. We're not ahead of any of that information, by the way, it's all public, you could probably look that up.

It but it is uh it's it's going to happen. It's there, and they've just got to work their way through it.

Uh and we've we're just miles on top of it, obviously, because of the fact that we went out and got that accreditation some time ago.

Thanks, Chris. Um, uh, another question has come in from uh Lyndsey at Goldman Sachs, which I think you probably addressed there, but it's just uh, "Any update on the SCIF?"

So. Uh no

no real update on the SCIF. That's um another part of the project that has been obviously delayed or stalled um on that journey.

There's there's the, that that to us, that job will go ahead. In what fashion or how that goes to market will be um yet to play out.

Okay. Um another question that's just popped up there now from Phil Shaw uh uh sorry, from Phil Pepe at Shaw's, and he's asking, "Can you elaborate on any opportunities uh for Duratec surrounding the Brisbane 2032 Olympics?"

Uh

there's plenty. There Look, there's lots of opportunity, uh and we we're already probably take or, doing a couple of projects there.

Uh so the Clem Jones Promenade, that's going to be probably the biggest one of the biggest features for Brisbane. Just hearing some of the stats out there, it's quite super interesting how many people are going to be there for this uh sort of 8 weeks of it, and they've got to have things to do in the city.

There's building upgrades, there's um infrastructure upgrades. There's Brisbane Airport, massive um updates to that, including fuel.

The work we're doing at Perth Airport that we believe can translate straight across to Brisbane. Um and there's some similar teams involved with that, we think that's that's a really good place to play.

There'll be all sorts of things going on. Um, there's always a heap of caution around these things as well from our perspective, like localized inflation probably in the last 3 years in the build-up to the Olympics is going to be, I think, pretty strong, but a lot of the stuff we do is of now onwards.

As in, if you're going to do a building upgrade, you know what you're doing. Do it now.

Don't do it in 2030. We think we've got um a fair bit of uh work that will spin out for us.

If you think about, all the up, the upgrades that have to happen, this is all to the peripheral stadiums that exist now. You've got a lot of that, uh we've done a little bit there.

We think there's a lot more to do. It's uh there's definitely opportunities for us in that.

Great. Thanks, Chris.

Um thanks, Ashley. That appears to be the last question that we have.

Um just a reminder to participants, if if there were any further questions, you can um contact the company directly through our investor relations email address. Um I'll just um pass over to Chris for any closing remarks.

Yep. No worries.

Thanks, Adrienne. Just uh just really, yeah, thanks to all the shareholders um for for being on that journey with us to this point.

Um just in '27, we expect to grow significantly, and our confidence is underpinned by that order book being up 70%. Plus, we have those MSAs, they're up a couple of basis points there, and we are expecting also some uh near-term contract awards which will uh support us further.

Uh started off the year well. Look, the momentum in May and June has been strong as well, obviously, with uh some of those wins starting to come to fruition.

We we certainly see a a strong start to this FY '27, and plenty more big deals, we think, to come that sort of positions us, what we think is is very well for '27, and some of these going to '28. That we haven't sort of had that type of uh look ahead, I don't think, before.

Uh yeah, it's in we're in a great position, and um just want to thank everyone again for listening in and uh and the questions that have come as well. Thanks again.

Thanks, Chris. Um that that concludes today's webcast.

Um thank you to everyone for joining in, and have a good afternoon.

Thank you.

Morning.