AJ Lucas Group (AJL) AI Stock Analysis

• Market Cap: AU$13.76M
• Dividend Yield: N/A
• Average Volume (3M): 709.87K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.61
• Revenue Growth: -8.48%
• EPS Growth: -2080.00%
• Country: AU
• Employees: 331
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Coal
• EPS (TTM): >-0.01
• Shares Outstanding: 1,375,729,600
• 10 Day Avg. Volume: 1,455,176
• 30 Day Avg. Volume: 709,874
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.09
• Price to Sales (P/S): 0.05
• P/FCF Ratio: 2.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 41 Neutral
• Price Target: AU$0.00 ▼(-100.00% Downside)

AJ Lucas Group's overall stock score is primarily impacted by its weak financial performance and concerning valuation metrics. The company's financial instability, negative equity, and inability to generate positive net income are significant risks. Technical analysis provides a neutral outlook, but does not offset the financial and valuation concerns.

AJ Lucas Group Business Overview & Revenue Model

Company Description

AJ Lucas Group (AJL) is an Australian company specializing in infrastructure and services across the resources, energy, and construction sectors. The company operates in various segments including drilling, engineering, and project management, providing innovative solutions and high-quality services to clients in the mining, oil, and gas industries. AJ Lucas Group is known for its expertise in horizontal directional drilling and has a strong focus on safety, sustainability, and technological advancement in its operations.

How the Company Makes Money

AJ Lucas Group generates revenue primarily through its engineering and construction services, particularly in the drilling sector, where it offers services such as pipeline installation, geotechnical drilling, and tunneling. The company also earns income from project management and consulting services provided to clients in the resources and energy sectors. Key revenue streams include contracts with government and private sector clients for large-scale infrastructure projects. Additionally, partnerships with major players in the industry, as well as participation in joint ventures, contribute to its earnings by allowing AJL to leverage shared resources and expertise to deliver complex projects.

AJ Lucas Group Financial Statement Overview

Summary

AJ Lucas Group Limited demonstrates operational efficiency with positive EBIT and EBITDA margins, but is struggling with profitability as evidenced by consistent net losses. The balance sheet indicates high leverage and solvency challenges due to negative equity. However, the cash flow situation is robust, with strong operating and free cash flows, suggesting effective cash management despite profitability issues.

Income Statement

The company has shown a moderate revenue growth of 0.95% from the previous year. Gross Profit Margin stands at 25.31%, which indicates healthy operational efficiency. However, the Net Profit Margin is negative due to a net loss of $702,000, reflecting challenges in achieving profitability. EBIT and EBITDA margins are satisfactory at 13.63% and 18.21% respectively, showing positive operational performance excluding interest, tax, and depreciation.

Balance Sheet

The company faces financial challenges with a negative Stockholders' Equity of $57.79 million, indicating potential solvency issues. The Debt-to-Equity Ratio is not meaningful due to negative equity, highlighting high leverage. The Equity Ratio is negative, which poses a risk to financial stability. The Return on Equity is not applicable due to negative equity.

Cash Flow

Operating Cash Flow significantly improved to $32.03 million, indicating strong cash generation capabilities. Free Cash Flow is positive at $17.78 million, showing effective capital management. The Operating Cash Flow to Net Income ratio is strong due to positive cash flow despite net losses, reflecting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	157.41M	145.61M	159.10M	157.61M	123.23M	111.09M
Gross Profit	38.94M	103.43M	40.27M	19.61M	13.09M	111.09M
EBITDA	24.06M	14.39M	28.98M	-135.61M	13.63M	20.58M
Net Income	-9.62M	-15.01M	-702.00K	-152.06M	-11.32M	3.34M
Balance Sheet
Total Assets	99.60M	89.07M	108.32M	104.14M	220.70M	232.00M
Cash, Cash Equivalents and Short-Term Investments	8.55M	3.87M	16.85M	14.04M	3.06M	5.14M
Total Debt	127.24M	123.81M	126.38M	126.91M	110.12M	107.39M
Total Liabilities	169.39M	162.71M	166.16M	161.20M	143.88M	137.56M
Stockholders Equity	-69.73M	-73.55M	-57.79M	-57.03M	75.66M	93.27M
Cash Flow
Free Cash Flow	14.47M	2.94M	17.78M	-4.46M	9.28M	17.89M
Operating Cash Flow	29.94M	13.07M	32.03M	1.39M	12.56M	19.62M
Investing Cash Flow	-14.95M	-9.26M	-13.75M	-5.84M	-3.27M	-1.65M
Financing Cash Flow	-22.91M	-16.94M	-15.46M	15.35M	-12.84M	-15.88M

AJ Lucas Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
WEC	43 Neutral	AU$10.91M	―	―	―	―	-57.51%
AJL	41 Neutral	AU$13.76M	―	―	―	-8.48%	-2080.00%
AUH	39 Underperform	AU$4.54M	―	-7.09%	―	―	42.86%
JAL	38 Underperform	AU$78.18M	―	-2.71%	―	―	40.74%
NCR	38 Underperform	AU$3.07M	―	―	―	―	57.14%
REY	33 Underperform	―	―	―	―	―	-308.85%

AJ Lucas Group Corporate Events

AJ Lucas Group Appoints New Director to Strengthen Leadership

AJ Lucas Group Limited has announced the appointment of Robert Bailey as a new director, effective from October 10, 2025. This appointment is part of the company’s ongoing efforts to strengthen its leadership team, which could have significant implications for its strategic direction and stakeholder engagement.

AJ Lucas Group Proposes Re-election of Director Robert Bailey

AJ Lucas Group Limited has announced an addendum to its 2025 Annual General Meeting notice, introducing Resolution 5, which proposes the re-election of Mr. Robert Bailey as a director. Mr. Bailey, nominated by the company’s largest shareholder Kerogen Investments, brings over 25 years of experience in investment banking and corporate advisory, particularly in natural resources. The board, excluding Mr. Bailey, recommends shareholders vote in favor of his election, highlighting the strategic importance of his expertise for the company’s future operations.

AJ Lucas Group Strengthens Board with New Appointment

AJ Lucas Group Limited has appointed Robert Bailey as a non-executive director, bringing over 25 years of experience in investment banking and corporate advisory, particularly in the natural resources sector. This strategic appointment, influenced by the company’s largest shareholder, Kerogen Investments, is expected to enhance the board’s expertise and support the company’s growth and stakeholder interests.

AJ Lucas Group Releases 2025 Corporate Governance Statement

AJ Lucas Group Limited has released its corporate governance statement for the financial year ending June 30, 2025, which details its adherence to the ASX Corporate Governance Council’s recommendations. The statement, approved by the board, outlines the company’s governance practices, including board responsibilities, director appointments, and executive agreements. This announcement ensures transparency and compliance with ASX listing rules, potentially strengthening stakeholder confidence in the company’s governance framework.

AJ Lucas Group Reports FY2025 Results Amid Operational Challenges

AJ Lucas Group Limited reported a decrease in revenue and profit for FY2025, attributed to operational delays and incidents at customer mine sites, which reduced demand for its services. Despite these challenges, the company remains optimistic about the robust fundamentals of the metallurgical coal sector. Lucas successfully extended its debt facilities with simpler and lower-cost terms, and post-year-end, it settled a dispute over UK shale gas exploration licenses, resulting in a significant cash payment.

AJ Lucas Group: Annual Report Highlights Strategic Focus

AJ Lucas Group, a specialist in drilling services for the energy, mining, and infrastructure sectors, has built a reputation for innovative and reliable project delivery. The company’s annual report highlights its strategic focus and operational strengths, positioning it as a key player in its industry.

AJ Lucas Group Reports Significant Financial Decline for FY 2025

AJ Lucas Group Limited reported a significant decline in its financial performance for the year ended June 30, 2025. The company experienced an 8.5% decrease in revenue from continuing operations, a 50.3% drop in EBITDA, and a substantial 2038.2% increase in loss attributable to members. These results highlight challenges in the company’s operations, potentially impacting its market position and stakeholder confidence.

AJ Lucas Group Faces Challenges, Invests in Future

AJ Lucas Group Limited is a specialist service provider in the energy, mining, and infrastructure sectors, known for its innovative solutions and reliable project delivery. In its latest earnings report, the company faced a challenging year with operational disruptions impacting its Australian drilling operations, leading to a decline in revenue and earnings. Despite these setbacks, AJ Lucas continued to invest in future capabilities, including modern rigs and geophysical data technology, and achieved a significant milestone with a technically demanding open-cut degasification project. Financially, the company reported a revenue of $145.6 million, down 8.5% from the previous year, and a Group EBITDA of $14.48 million, a 50.3% decrease. The UK operations faced an EBITDA loss, but a resolved commercial dispute provided a substantial post-year-end cash injection. Looking forward, AJ Lucas remains cautiously optimistic, focusing on diversifying its client base and expanding into adjacent markets, with a strong emphasis on sustainability and governance.

AJ Lucas Group Settles UK Shale Gas Dispute

AJ Lucas Group Limited announced that its UK subsidiary, Cuadrilla Resources Limited, has settled a dispute over a carry agreement related to UK shale gas exploration licences, resulting in a cash payment of £12.5 million. This settlement marks the termination of the carry agreement, which was previously not accounted for by the company, potentially impacting its financial standing and operations in the UK shale gas market.