Downer EDI Limited (DOW) AI Stock Analysis

• Market Cap: €5.69B
• Dividend Yield: 3.11%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 35.8
• Beta (1Y): 0.84
• Revenue Growth: -4.53%
• EPS Growth: 97.67%
• Country: AU
• Employees: 26,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.19
• Shares Outstanding: 663,143,430
• 10 Day Avg. Volume: 1,174,070
• 30 Day Avg. Volume: 1,745,792
• PEG Ratio: 0.22
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.40
• P/FCF Ratio: 9.63
• 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: €8.29
• Price Target Upside: -3.47% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): €10.26B

• Rating: 64 Neutral
• Price Target: AU$9.00 ▲(4.77% Upside)
• Action: Reiterated Date: 10/22/25
• Date: Action: Reiterated 10/22/25

Downer EDI Limited's overall stock score is driven by stable financial performance and positive technical indicators. However, the high P/E ratio suggests potential overvaluation, and the overbought technical signals indicate a risk of short-term price correction. The lack of earnings call and corporate events data limits further insights.

Positive Factors

Diversified, contract-based business model

Downer's integrated services model across transport, utilities and industrial sectors creates diversified, contract-based revenue streams and repeat frameworks. This reduces revenue volatility, supports multi-year backlog and provides a durable base for cash generation and scale advantages.

Effective cost management / strong gross margins

A strong gross profit margin reflects effective project cost control and procurement. For an engineering and services firm, sustaining gross margins preserves operating cash flow on long-duration contracts, allowing investment in capability and cushioning against input-cost volatility.

Healthy cash conversion metrics

A healthy free cash flow to net income ratio indicates that reported earnings convert into cash, supporting dividends, debt servicing and reinvestment. Strong cash conversion is a durable strength for funding operations and bidding on multi-year projects without over-reliance on external financing.

Negative Factors

Declining revenue trend

A year-over-year revenue decline reduces scale benefits and can erode bargaining power with suppliers and clients. For a services contractor, sustained top-line contraction risks underutilized capacity, weaker framework renewals and pressure on margins and investment plans over the medium term.

Declining free cash flow growth

Slowing free cash flow growth constrains the company’s ability to fund capex, absorb project overruns or expand organically. Even with healthy conversion ratios, declining FCF growth reduces financial flexibility, increasing dependency on working capital or external financing for large contracts.

Low returns and modest profitability

Relatively low ROE and a low net profit margin signal limited capital efficiency and weak bottom-line conversion. In a competitive contract market, modest profitability limits the firm’s ability to reinvest, reward shareholders or build reserves against cyclical downturns without increasing leverage.

Downer EDI Limited Business Overview & Revenue Model

Company Description

Downer EDI Limited operates as an integrated facilities management services provider in Australia, New Zealand, and internationally. Its Transport segment provides road network management; routine road maintenance; asset management systems; spray sealing; asphalt laying; and manufacture and supply of bitumen-based products and asphalt products. This segment also engages in the design and construction of light and heavy rail networks, signaling works, track and station works, and bridges; and provides rail safety technology, fleet maintenance, and overhaul services. The company's Utilities segment plans, designs, constructs, operates, maintains, manages, and decommissions power and gas network assets; provides water and wastewater treatment, and network construction and rehabilitation services; and designs, constructs, and maintains renewable assets in the wind, solar, and power system storage sectors. This segment also offers technology and communications solutions, including design, civil construction, network construction, operation, and maintenance services for fiber, copper, and radio networks. Its Facilities segment offers outsourced facility services to a range of industry sectors, including defence, education, government, healthcare, resources, leisure, assets services, and hospitality; technical and engineering services; maintenance and asset management services, including shutdowns, turnaround, and outage delivery; operations maintenance, refrigeration solutions, and ongoing management of strategic assets; feasibility studies; engineering design; procurement and construction; and commissioning and decommissioning services. This segment also designs and manufactures mineral process equipment, as well as offers building and construction solutions. The company was incorporated in 1989 and is headquartered in Sydney, Australia.

How the Company Makes Money

Downer EDI Limited generates revenue through multiple streams, primarily from its contracts and service agreements in the sectors it operates in. The company earns money by providing services such as maintenance and repair of infrastructure, project management, and construction services. Key revenue streams include long-term contracts with government and private entities for public transport systems, road maintenance, and utility services. Additionally, Downer benefits from partnerships and joint ventures with other firms to undertake large-scale projects, which can enhance its earning potential. The company's focus on sustainable and efficient service delivery also positions it well in a market increasingly driven by environmental considerations, thereby attracting more clients and contracts.

Downer EDI Limited Financial Statement Overview

Summary

Downer EDI Limited presents a stable financial position with strong cost management but faces challenges in revenue growth and profitability. The balance sheet is stable, though growth potential is limited. Cash flow management is effective, but declining free cash flow growth poses a risk.

Income Statement

Downer EDI Limited has shown a mixed performance in its income statement. The company has a strong gross profit margin, indicating efficient cost management. However, the net profit margin is low, reflecting challenges in converting revenue into profit. Revenue has declined over the past year, which is a concern. The EBIT and EBITDA margins are modest, suggesting room for improvement in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, which indicates a balanced approach to leveraging. However, the return on equity is relatively low, suggesting limited returns for shareholders. The equity ratio is stable, reflecting a solid asset base. Overall, the balance sheet is stable but lacks strong growth indicators.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, which is a concern for future investments and operations. The operating cash flow to net income ratio is moderate, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio is healthy, suggesting effective cash management despite the growth challenges.

Breakdown	TTM	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	10.11B	10.48B	10.97B	11.64B	10.95B	11.51B
Gross Profit	1.28B	9.04B	1.28B	1.28B	1.21B	1.44B
EBITDA	616.90M	616.00M	512.70M	60.70M	645.80M	806.90M
Net Income	160.80M	136.70M	69.10M	-385.70M	151.60M	181.60M
Balance Sheet
Total Assets	6.08B	6.48B	7.06B	7.48B	7.64B	8.32B
Cash, Cash Equivalents and Short-Term Investments	683.40M	839.70M	856.70M	889.10M	738.50M	811.40M
Total Debt	1.60B	1.54B	1.81B	2.13B	1.91B	2.14B
Total Liabilities	3.93B	4.24B	4.80B	5.19B	4.83B	5.36B
Stockholders Equity	1.97B	2.06B	2.08B	2.29B	2.81B	2.95B
Cash Flow
Free Cash Flow	457.30M	439.60M	397.80M	55.20M	215.60M	423.40M
Operating Cash Flow	569.20M	562.50M	544.10M	318.20M	495.40M	708.70M
Investing Cash Flow	24.70M	-29.10M	-29.30M	-86.70M	38.40M	35.90M
Financing Cash Flow	-543.50M	-536.50M	-566.60M	-80.70M	-600.20M	-523.20M

Downer EDI Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DOW, the sentiment is Positive. The current price of 8.59 is above the 20-day moving average (MA) of 7.99, above the 50-day MA of 7.97, and above the 200-day MA of 7.24, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 70.47 is Negative, neither overbought nor oversold. The STOCH value of 95.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DOW.

Downer EDI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSM	70 Outperform	€1.29B	24.13	12.08%	2.43%	1.65%	84.19%
SRG	66 Neutral	AU$1.82B	31.97	13.62%	1.85%	23.76%	21.18%
MND	65 Neutral	AU$3.24B	30.32	17.57%	2.65%	7.20%	32.60%
DOW	64 Neutral	€5.69B	35.76	6.66%	3.11%	-4.53%	97.67%
NWH	64 Neutral	€3.00B	61.41	4.71%	3.20%	12.18%	-73.81%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGH	59 Neutral	AU$1.73B	21.99	9.26%	1.30%	15.14%	-7.23%

Downer EDI Limited Corporate Events

Macquarie Group Ceases to Be Substantial Holder in Downer EDI

Macquarie Group Limited and a wide range of its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Downer EDI Limited. The change, formalised in late February 2026, signals a reduction in Macquarie’s voting interest and may modestly alter Downer’s shareholder base and the balance of institutional influence over the company.

The most recent analyst rating on (AU:DOW) stock is a Buy with a A$9.50 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Macquarie exits substantial holder position in Downer EDI

Macquarie Group Limited and its controlled entities have lodged a notice stating they have ceased to be a substantial holder in Downer EDI Limited. The filing, made under Australia’s Corporations Act, indicates changes in Macquarie’s relevant interests and associations regarding Downer’s voting securities, signalling a reduction in Macquarie’s influence over the company’s share register.

The notice formalises Macquarie’s move out of a substantial shareholder position, which may alter the composition of Downer’s institutional investor base. While specific transaction details are contained in annexures, the change could modestly affect market perceptions of Downer’s ownership structure and governance dynamics without immediately impacting day-to-day operations.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.50 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Updates Market on Ongoing On-Market Share Buy-Back

Downer EDI Limited has updated the market on its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest Appendix 3C filing dated 24 February 2026 confirms that this notice is a daily buy-back notification, following the initial buy-back disclosure made in August 2025.

The company reported that a total of 8,536,481 shares had been repurchased before the previous trading day, with an additional 13,358 shares bought back on the previous day. The continuation of the on-market buy-back signals ongoing capital management efforts that may support earnings per share and potentially reflect management’s confidence in the company’s valuation, with implications for existing shareholders as the share count is gradually reduced.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Updates Market on Progress of On-Market Share Buy-Back

Downer EDI Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for ordinary fully paid shares under code DOW. As of 23 February 2026, the company reported that it had repurchased a cumulative 8,430,236 shares prior to the previous day and a further 106,245 shares on the previous day, reaffirming its active capital management and potential focus on optimising its balance sheet and shareholder value.

The announcement is a routine daily buy-back update, following the initial notification of the buy-back lodged on 21 August 2025 and the most recent prior update on 23 December 2025. Continuation of the on-market buy-back signals management’s ongoing commitment to returning capital to shareholders and may support earnings per share metrics and market confidence, depending on trading conditions and investor response.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Performance Rights Lapse After Unmet Vesting Conditions

Downer EDI Limited has notified the market that 41,386 performance rights (ASX code DOWAC) have lapsed as of 31 January 2026 because the vesting conditions were not met or could no longer be satisfied. The cessation of these securities reflects a non-cash adjustment to the company’s issued capital under its long-term incentive arrangements, and may be viewed by investors as an indication that certain performance hurdles tied to executive or employee remuneration were not achieved over the relevant period.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Macquarie Group Ceases to Be Substantial Shareholder in Downer EDI

Macquarie Group Limited and its controlled entities have filed a notice stating they have ceased to be a substantial shareholder in Downer EDI Limited, under the disclosure requirements of the Corporations Act 2001. The change in Macquarie’s relevant interest, formalised on 14 January 2026 and signed off by Macquarie’s company secretary on 19 January 2026, indicates a reduction in its voting power below the substantial holding threshold, potentially altering Downer’s institutional shareholder mix and reducing Macquarie’s direct influence over corporate voting matters.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Macquarie Group Ceases to Be Substantial Holder in Downer EDI

Macquarie Group Limited and its controlled entities have lodged a notice that they have ceased to be a substantial holder in Downer EDI Limited, indicating that their voting interest in the company has fallen below the substantial holding threshold. The change reduces Macquarie’s influence over shareholder voting in Downer and may marginally alter the company’s institutional investor mix, though the release provides no details on the consideration, timing, or strategic rationale behind the sell-down.

The most recent analyst rating on (AU:DOW) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Allan Gray Australia Ceases to Be Substantial Shareholder in Downer EDI

Allan Gray Australia Pty Ltd and its related bodies corporate have notified Downer EDI Limited that they have ceased to be a substantial shareholder in the company as of 8 January 2026, according to a statutory disclosure lodged under the Corporations Act. The notice, signed by Downer EDI’s company secretary Elizabeth Lee, indicates that changes in relevant interests and associations within Allan Gray’s managed funds and mandates have reduced the group’s voting power below the substantial holding threshold, signalling a shift in the company’s share register that may alter the balance of institutional ownership and potentially influence future governance and market perceptions of the stock.

The most recent analyst rating on (AU:DOW) stock is a Buy with a A$8.50 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Cancels 1.7 Million Shares Under On-Market Buy-Back

Downer EDI Limited has cancelled 1,745,180 ordinary fully paid shares following an on-market buy-back, effective 1 December 2025. The reduction in issued capital reflects the company’s ongoing capital management activities, which may enhance earnings per share and signal confidence in its financial position, with potential implications for shareholder value and market perception of the stock.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Updates Market on Progress of Ongoing On-Market Share Buy-Back

Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. As at the date of the latest update on 23 December 2025, the company reported that it had repurchased a cumulative total of 8,369,022 shares prior to the previous trading day, and a further 61,214 shares on the previous day, as part of a buy-back that commenced on 21 August 2025. This regular disclosure underscores Downer’s continued execution of its capital management strategy and may signal management’s confidence in the company’s valuation while incrementally reducing the number of shares on issue, potentially enhancing earnings per share for remaining investors.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer Named Preferred Contractor for Major New Zealand State Highway Maintenance Deals

Downer EDI Limited has been selected as the preferred contractor to deliver road network maintenance on state highways across four NZ Transport Agency Waka Kotahi contracts, covering Central Waikato, Taranaki, Tairawhiti and Coastal Otago, with terms ranging from three to ten years starting in May 2026, subject to finalising contract terms. The company expects about NZD$870 million in revenue from the Taranaki and Tairawhiti contracts and the first five years of the Central Waikato and Coastal Otago agreements, with work including inspections, pavement and surfacing renewals, drainage and environmental maintenance, traffic services, structures upkeep and emergency response, reinforcing Downer’s position as a leading road services provider in New Zealand and deepening its long-standing relationship with NZTA in a way that should strengthen its role in critical transport infrastructure and support ongoing operational scale in the region.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Updates on Share Buy-Back Program

Downer EDI Limited has issued a notification about the continuation of its on-market buy-back program, highlighting that it has repurchased a total of 8,237,680 ordinary shares prior to December 17, 2025, with an additional 131,342 shares bought back on December 17, 2025. This move may signal confidence in the company’s performance or a commitment to delivering value to shareholders, which could have implications for its stock liquidity and investor sentiment.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Market Buy-Back Program

Downer EDI Limited has announced an update regarding its ongoing on-market buy-back program, with a total of 8,109,623 securities bought back before the previous day and an additional 128,057 securities acquired on the previous day. This buy-back initiative reflects the company’s strategic approach to managing its capital structure, potentially enhancing shareholder value and signaling confidence in its financial health.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Share Buy-Back Program

Downer EDI Limited has announced an update on its ongoing on-market share buy-back program. As of December 16, 2025, the company has repurchased a total of 8,109,623 ordinary fully paid securities, with 86,996 bought back on the previous day. This buy-back initiative is part of Downer’s strategy to optimize its capital structure and enhance shareholder value.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Share Buy-Back Program

Downer EDI Limited announced an update regarding its ongoing on-market buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 7,899,252 securities prior to the previous day, with an additional 123,375 securities repurchased on the previous day. This buy-back initiative is part of Downer’s strategy to optimize its capital structure and enhance shareholder value, reflecting the company’s commitment to returning capital to its investors.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Share Buy-Back Program

Downer EDI Limited has announced a daily update on its ongoing on-market buy-back program. As of December 11, 2025, the company has repurchased a total of 7,899,252 ordinary fully paid securities, indicating a strategic move to optimize its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Market Buy-Back Program

Downer EDI Limited has announced an update on its ongoing on-market buy-back program, with a total of 116,022 ordinary fully paid securities bought back on the previous day, adding to the cumulative total of 7,665,674 securities repurchased. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting a proactive approach to managing its financial resources and market positioning.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Market Buy-Back Program

Downer EDI Limited has announced an update regarding its ongoing on-market buy-back program. As of December 9, 2025, the company has repurchased a total of 7,665,674 ordinary fully paid securities, including 83,069 securities bought back on the previous day. This buy-back initiative is part of Downer EDI’s strategy to optimize its capital structure and enhance shareholder value.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Buy-Back Program

Downer EDI Limited has announced an update on its ongoing on-market buy-back program, detailing the purchase of 198,161 ordinary fully paid securities on the previous day, adding to a total of 7,384,444 securities bought back prior. This buy-back initiative is part of the company’s capital management strategy, potentially impacting its share value and signaling confidence in its financial health to stakeholders.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Share Buy-Back Program

Downer EDI Limited has announced an update regarding its ongoing on-market buy-back program. As of December 5, 2025, the company has repurchased a total of 7,384,444 ordinary fully paid shares, including 142,150 shares bought back on the previous day. This buy-back initiative is part of Downer’s strategy to optimize its capital structure and enhance shareholder value, reflecting the company’s commitment to returning capital to its investors.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Market Buy-Back Progress

Downer EDI Limited has announced an update on its ongoing on-market buy-back program, reporting the repurchase of 172,460 ordinary fully paid securities on the previous day. This buy-back initiative is part of the company’s strategy to optimize its capital structure and enhance shareholder value, reflecting a commitment to returning capital to shareholders.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.

Downer EDI Limited Updates on Share Buy-Back Program

Downer EDI Limited has announced an update regarding its ongoing share buy-back program, which involves the repurchase of its ordinary fully paid securities. As of the latest update, the company has bought back a total of 6,877,085 securities, with an additional 192,749 securities repurchased on the previous day. This buy-back initiative is part of Downer EDI’s strategy to optimize its capital structure and potentially enhance shareholder value by reducing the number of shares outstanding.

The most recent analyst rating on (AU:DOW) stock is a Hold with a A$8.00 price target. To see the full list of analyst forecasts on Downer EDI Limited stock, see the AU:DOW Stock Forecast page.