Downer EDI Limited (AU:DOW)
ASX:DOW
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Downer EDI Limited
(Sydney:DOW)
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Rating:64Neutral
Price Target:
AU$9.00
▲(22.45% Upside)
Action:Reiterated
Date: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
Recurring O&M Revenue
Downer’s material exposure to long-term operations and maintenance contracts creates recurring, contractually-backed revenue streams. This reduces revenue volatility versus project-only peers, supports predictable cash flow, and strengthens customer lock-in through performance and indexation clauses over multi-year horizons.
Negative Factors
Revenue Decline
Reported revenue decline signals pressure in contract wins, volumes or pricing. Sustained top-line contraction reduces operating leverage, constrains margin expansion, limits reinvestment and weakens bargaining power in renewals and tendering, making long-term growth recovery more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring O&M Revenue
Downer’s material exposure to long-term operations and maintenance contracts creates recurring, contractually-backed revenue streams. This reduces revenue volatility versus project-only peers, supports predictable cash flow, and strengthens customer lock-in through performance and indexation clauses over multi-year horizons.
Read all positive factors
Downer EDI Limited (DOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$5.41B
Dividend Yield3.11%
Average Volume (3M)1.75M
Price to Earnings (P/E)34.1
Beta (1Y)0.93
Revenue Growth-4.99%
EPS Growth120.98%
CountryAU
Employees26,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.24
Shares Outstanding659,134,770
10 Day Avg. Volume1,174,070
30 Day Avg. Volume1,745,792
Financial Highlights & Ratios
PEG Ratio0.22
Price to Book (P/B)2.05
Price to Sales (P/S)0.40
P/FCF Ratio9.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$8.85Price Target Upside20.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.43
Revenue Forecast (FY)AU$9.95B
Downer EDI Limited Business Overview & Revenue Model
Company Description
Downer EDI Limited, an Australian-headquartered firm established in 1989, delivers comprehensive facilities management solutions across Australia, New Zealand, and global markets. The company's Transport division specializes in road infrastructure...
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, proje...
Downer EDI Limited Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| 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
Positive
7.35
Price Trends
7.78
Positive
7.80
Positive
7.68
Positive
Market Momentum
0.12
Negative
56.34
Neutral
71.79
Neutral
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 7.35 is below the 20-day moving average (MA) of 8.02, below the 50-day MA of 7.78, and below the 200-day MA of 7.68, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 56.34 is Neutral, neither overbought nor oversold. The STOCH value of 71.79 is Neutral, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | AU$2.07B | 39.26 | 27.29% | 0.57% | 50.42% | 92.71% | |
69 Neutral | AU$2.48B | 44.74 | 13.26% | 1.85% | 22.85% | 30.32% | |
66 Neutral | AU$1.95B | 24.76 | 8.79% | 1.30% | 34.24% | 1.87% | |
65 Neutral | AU$2.93B | 27.33 | 20.27% | 2.65% | 26.80% | 40.18% | |
64 Neutral | AU$5.41B | 34.14 | 7.97% | 3.11% | -4.99% | 120.98% | |
64 Neutral | AU$3.21B | 65.75 | 7.79% | 3.20% | 14.40% | -57.82% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
AU:DOW
Downer EDI Limited
8.11
2.26
38.63%
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Downer EDI Limited Corporate Events
Downer EDI Cancels Over 530,000 Shares in On-Market Buy-Back
Jun 18, 2026
Downer EDI Limited has cancelled 531,551 fully paid ordinary shares as part of an on-market buy-back completed on 29 May 2026. The reduction in issued capital, disclosed via an Appendix 3H filing, marginally enhances remaining shareholders’ ...
Downer EDI Reports Continued Progress in On-Market Share Buy-Back
Jun 18, 2026
Downer EDI Limited has issued an updated notification to the ASX confirming ongoing activity under its on-market share buy-back program for its ordinary fully paid shares. The latest daily disclosure reports that, as of the previous day, the compa...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
Jun 9, 2026
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. The latest daily report, dated 10 June 2026, records that a total of 12,223,533 shares ha...
Downer EDI Reports Daily Progress on On-Market Share Buy-Back
Jun 8, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under its previously announced program. The filing confirms the company has repurchased a cumulative 12...
Downer EDI Updates Market on Ongoing Daily Share Buy-Back
Jun 4, 2026
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. The filing confirms that the company continues to execute daily buy-backs as part of a ca...
Downer wins $310m Transurban Sydney road maintenance contracts
Jun 4, 2026
Downer EDI Limited has secured contracts of up to nine years, worth about $310 million, to provide road maintenance and 24/7 incident response services on Transurban’s northern Sydney toll road assets, including NorthConnex, the M2 Motorway ...
Downer EDI Provides Daily Update on Ongoing Share Buy-Back
Jun 1, 2026
Downer EDI Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that, as at the latest update dated 2 June 2026, it had repurchased a total...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 31, 2026
Downer EDI Limited has provided an updated daily notification on its ongoing on-market share buy-back program for its ordinary fully paid shares listed under the code DOW. The latest filing notes that a total of 11,907,337 shares had been repurcha...
Downer EDI Cancels Nearly 2 Million Shares in On-Market Buy-Back
May 28, 2026
Downer EDI Limited has cancelled 1,968,411 ordinary fully paid shares as part of an on-market buy-back completed on May 4, 2026. The reduction in issued capital is expected to marginally enhance earnings per share and reflects ongoing capital mana...
Downer EDI Continues Daily On‑Market Share Buy‑Back
May 28, 2026
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. The latest filing reports that, as of 29 May 2026, the company had repurchased a total of...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 27, 2026
Downer EDI Limited has provided an updated notification to the Australian Securities Exchange confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares under the code DOW. The update, dated 28 May 2026...
Downer EDI Issues New Tranche of Unquoted Performance Rights
May 26, 2026
Downer EDI Limited has notified the market of the issue of 114,599 unquoted performance rights under its employee incentive scheme, effective 17 April 2026. The rights, which will not be quoted on the ASX, form part of the company’s broader ...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 25, 2026
Downer EDI Limited has provided an updated notification to the market regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily update, dated 26 May 2026, confirms that a total of 11,578,595 securi...
Downer EDI Updates Market on Ongoing On‑Market Share Buy‑Back
May 24, 2026
Downer EDI Limited has provided an update on its on-market share buy-back, confirming that it is repurchasing its ordinary fully paid shares under an existing program first notified in August 2025. The company reported that a total of 11,482,563 s...
Downer EDI Continues On‑Market Share Buy‑Back With Daily Update
May 22, 2026
Downer EDI Limited has provided an update on its on‑market share buy‑back, confirming that it repurchased 167,787 ordinary fully paid shares on the previous trading day. This lifts the total number of shares bought back under the curre...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 21, 2026
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 under code DOW. The latest daily disclosure shows that, as of the previous day, the compan...
Downer EDI Provides Daily Update on Ongoing On-Market Share Buy-Back
May 12, 2026
Downer EDI Limited has issued an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily update reports that the company had repurchased a total of 10,416,313 shar...
Downer EDI Updates Market on Progress of On‑Market Share Buy‑Back
May 11, 2026
Downer EDI Limited has reported an update to its on-market share buy-back program, confirming that a total of 10,231,417 ordinary fully paid shares had been repurchased before the previous day. The company also disclosed that it bought back a furt...
Macquarie exits substantial holding position in Downer EDI
May 11, 2026
Macquarie Group Limited has lodged a notice stating it and its controlled entities have ceased to be substantial holders in Downer EDI Limited, an Australian-listed company. The filing, signed by Macquarie assistant company secretary Olivia Shephe...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 10, 2026
Downer EDI Limited has updated the market on the progress of its on-market share buy-back program for ordinary fully paid shares. The company reported that it had repurchased a cumulative total of 10,150,822 shares prior to the previous trading da...
Downer EDI Issues Daily Update on Ongoing On‑Market Share Buy‑Back
May 6, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under the code DOW. The update, dated 7 May 2026, forms part of a series of daily buy-back notification...
Downer EDI Updates Market on Progress of On‑Market Share Buy‑Back
May 5, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid securities. The latest daily report shows that the company had repurchased a cumulative 10,058,116 shares befo...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 4, 2026
Downer EDI Limited has provided an update on its ongoing on-market share buy-back, covering its ordinary fully paid shares traded under the ASX code DOW. The company is required to lodge daily notifications with the exchange and has indicated this...
Macquarie Group Ceases to Be Substantial Holder in Downer EDI
May 4, 2026
Macquarie Group Limited and a range of 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 a reduction in Macq...
Perpetual exits substantial holder position in Downer EDI
Apr 28, 2026
Perpetual Limited and its related bodies corporate have notified Downer EDI Limited that they have ceased to be a substantial holder in the company as of 24 April 2026. The change in relevant interests, detailed in accompanying schedules, indicate...
Downer boosts funding flexibility with A$400m seven-year note issue
Apr 22, 2026
Downer EDI Limited has raised A$400 million through a seven-year Medium Term Note issue priced at 6.488% under its A$1.25 billion Debt Issuance Programme, following strong demand from domestic and international fixed income investors. The deal, le...
Downer EDI Cancels Shares Under On-Market Buy-Back
Apr 7, 2026
Downer EDI Limited has cancelled 144,242 ordinary fully paid shares following completion of an on-market buy-back, effective 13 March 2026. The reduction in issued capital forms part of the company’s broader capital management strategy and i...
Macquarie Group Ceases to Be Substantial Holder in Downer EDI
Mar 27, 2026
Macquarie Group Limited and its controlled entities have lodged a notice that they have ceased to be substantial holders in Downer EDI Limited, under Australia’s Corporations Act disclosure regime. The filing, signed by Macquarie’s com...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.