Duratec Limited (DUR) AI Stock Analysis

• Market Cap: AU$554.38M
• Dividend Yield: 2.25%
• Average Volume (3M): 452.77K
• Price to Earnings (P/E): 24.3
• Beta (1Y): 1.11
• Revenue Growth: 3.10%
• EPS Growth: 5.08%
• Country: AU
• Employees: 1,132
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 257,849,730
• 10 Day Avg. Volume: 472,255
• 30 Day Avg. Volume: 452,772
• PEG Ratio: 3.11
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 0.63
• P/FCF Ratio: 16.41
• 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: AU$2.10
• Price Target Upside: -2.33% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: AU$2.50 ▲(16.28% Upside)

The score is driven primarily by strong financial performance (revenue growth, improved gross margin, robust cash generation, and high ROE) and supportive bullish technical trends (price above major moving averages with positive MACD). These positives are tempered by relatively modest net profitability and increased leverage, while valuation appears only fair given the P/E of ~22 alongside a ~2.1% dividend yield.

Positive Factors

Consistent revenue growth

Duratec’s multi-year revenue growth and a 4.13% increase in the latest year indicate steady demand for remediation and maintenance services. This sustained top-line expansion supports long-term contract pipelines and repeat maintenance revenue, reducing reliance on one-off project spikes.

Improved gross margin and high ROE

An improved gross margin (18.55%) combined with a 30.71% ROE signals effective cost control and efficient capital deployment. These metrics point to durable operational leverage and strong returns on shareholder capital, which support reinvestment and resilience across project cycles.

Strong free cash flow generation

A 54% rise in free cash flow and a 0.61 FCF-to-net-income conversion rate show improved cash conversion from operations. Reliable cash generation enhances balance sheet flexibility, funds maintenance capex and working capital, and supports debt servicing or selective reinvestment over the medium term.

Negative Factors

Modest net profitability

Despite revenue and gross margin improvements, a sub-4% net margin constrains earnings resilience and free cash generation under stress. Low net profitability limits the company’s buffer against project cost overruns and reduces internal funds available for growth or debt reduction.

Increased leverage

A rising debt-to-equity ratio (0.66) raises financial risk by increasing fixed obligations. In cyclical project markets, higher leverage can strain liquidity during slow contract periods and reduces flexibility to bid competitively or absorb cost overruns without eroding returns over the medium term.

Exposure to project and sector cyclicality

Duratec’s project-based model and concentration in cyclical sectors like mining and oil & gas create revenue volatility risk. Dependence on large project awards and sector capex cycles can lead to uneven backlog and utilisation, challenging consistent margin and cashflow delivery over 2–6 months.

Duratec Limited Business Overview & Revenue Model

Company Description

Duratec Limited engages in the provision of assessment, protection, remediation, and refurbishment services to a range of assets, primarily steel and concrete infrastructure in Australia. It operates through Defence, Mining & Industrial, and Buildings & Facades segments. The Defence segment delivers capital facilities infrastructure and estate works program projects. The Mining & Industrial segment offers preventative maintenance programmes. The Buildings & Facades segment provides façade condition assessment and restoration completion services. It offers asset protection, building refurbishment, infrastructure upgrades, recladding, durability engineering, specialist access systems, construction, petrography lab, jack up barge hire, and spatial integration services. The company serves defense, mining, oil and gas, transport, marine, energy, building and façade, heritage, property, industrial, and water infrastructure industries. Duratec Limited was incorporated in 2010 and is headquartered in Wangara, Australia.

How the Company Makes Money

Duratec generates revenue through a variety of streams, primarily from its core service offerings in maintenance and refurbishment projects. The company contracts with clients across different sectors, providing specialized services that are often project-based, which can include long-term contracts for ongoing maintenance or short-term contracts for specific repair projects. Key revenue streams include service contracts, project management fees, and product sales related to its engineering solutions. Additionally, Duratec benefits from partnerships with major corporations and government entities, which can lead to larger project opportunities and consistent revenue flow. The company's focus on sustainability and innovative solutions also positions it favorably in a competitive market, attracting clients who prioritize environmentally responsible practices.

Duratec Limited Financial Statement Overview

Summary

Solid overall fundamentals supported by consistent revenue growth, improved gross margin (18.55%), and strong ROE (30.71%). Offsetting factors include a modest net margin (3.98%) and higher leverage with debt-to-equity rising to 0.66, which increases risk if conditions weaken.

Income Statement

Duratec Limited has shown consistent revenue growth over the years, with a notable 4.13% increase in the latest year. The gross profit margin has improved to 18.55%, indicating efficient cost management. However, the net profit margin remains modest at 3.98%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 0.66, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. Return on equity is strong at 30.71%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a solid financial foundation.

Cash Flow

Duratec Limited has demonstrated significant free cash flow growth of 54.29%, highlighting improved cash generation capabilities. The operating cash flow to net income ratio is 0.25, indicating that cash generation is aligned with reported earnings. The free cash flow to net income ratio of 0.61 suggests a good conversion of earnings into cash.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	573.03M	573.03M	555.79M	491.80M	310.00M	235.71M
Gross Profit	71.67M	106.31M	96.17M	82.07M	48.41M	45.81M
EBITDA	42.59M	47.84M	45.64M	37.47M	15.90M	15.15M
Net Income	22.83M	22.83M	21.43M	19.20M	7.76M	7.13M
Balance Sheet
Total Assets	251.37M	251.37M	225.40M	212.43M	137.62M	105.22M
Cash, Cash Equivalents and Short-Term Investments	84.03M	84.03M	65.22M	66.19M	58.26M	41.25M
Total Debt	49.39M	49.39M	19.72M	18.32M	14.81M	13.41M
Total Liabilities	177.05M	177.05M	166.28M	166.37M	106.67M	79.30M
Stockholders Equity	74.33M	74.33M	59.12M	46.06M	30.96M	25.92M
Cash Flow
Free Cash Flow	23.73M	22.01M	11.03M	22.20M	20.59M	-2.37M
Operating Cash Flow	37.77M	36.06M	27.28M	35.20M	28.03M	8.17M
Investing Cash Flow	-16.08M	-14.37M	-24.46M	-22.22M	-5.09M	-8.52M
Financing Cash Flow	-2.88M	-2.88M	-3.79M	-4.70M	-4.42M	1.82M

Duratec Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:DUR, the sentiment is Positive. The current price of 2.15 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 1.92, and above the 200-day MA of 1.74, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 59.07 is Neutral, neither overbought nor oversold. The STOCH value of 50.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:DUR.

Duratec Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUR	74 Outperform	AU$554.38M	24.29	34.21%	2.25%	3.10%	5.08%
GNG	71 Outperform	AU$736.89M	21.46	50.61%	5.24%	12.96%	8.19%
ACF	69 Neutral	AU$322.47M	13.94	16.13%	5.71%	25.14%	-14.54%
FWD	68 Neutral	AU$258.30M	18.34	8.79%	10.12%	20.83%	290.55%
SND	64 Neutral	AU$132.76M	56.40	4.01%	2.78%	-0.72%	-78.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Duratec Limited Corporate Events

Duratec to Host Investor Webinar on FY26 Half-Year Results

Duratec Limited has announced it will host an investor webinar to brief shareholders on its FY26 half-year operational and financial results, with Managing Director Chris Oates and Chief Financial Officer Ashley Muirhead presenting and taking questions. The session, scheduled for 25 February 2026 and to be made available on the company’s website shortly afterward, underscores Duratec’s focus on maintaining transparent engagement with investors amid its ongoing activities across multiple infrastructure and industrial sectors.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.50 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Updates Market on Lapse of 315,179 Conditional Rights

Duratec Limited has reported the lapse of 315,179 conditional rights (DURAA) to securities after the conditions attached to these rights were not met or became incapable of being satisfied by 31 December 2025. The cessation of these rights results in a reduction of potential future dilution for existing shareholders and provides the market with updated information on the company’s issued capital structure as at early January 2026.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec JV Advances Early Procurement for AUKUS-Linked Upgrades at HMAS Stirling

Duratec Limited’s 50:50 Duratec Ertech Joint Venture has been instructed by the Department of Defence to proceed with approximately $5 million of early procurement for long lead items at HMAS Stirling, as part of the planning phase for infrastructure upgrades to support future submarine capability under the AUKUS partnership. The move underscores Duratec’s deepening role in Defence infrastructure, with potential early on-site works ahead of full design completion and a second major contract for nuclear regulatory-compliant facilities now expected in the fourth quarter of FY26; together, these projects position the company as a key delivery partner for critical naval infrastructure ahead of the anticipated arrival of US and UK rotational submarine forces in late 2027.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Limited Successfully Passes All AGM Resolutions

Duratec Limited announced that all resolutions presented at its Annual General Meeting were successfully passed. This outcome reflects strong shareholder support and is expected to positively impact the company’s governance and strategic initiatives, reinforcing its position in the engineering and construction industry.

The most recent analyst rating on (AU:DUR) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Limited Reports Strong FY25 Performance Amid Strategic Growth

Duratec Limited reported a strong financial performance for FY25, with a revenue increase to $573 million and a net profit after tax of $22.8 million. The company attributes its success to a diversified business model and strategic execution, which have allowed it to capitalize on growth opportunities despite geopolitical uncertainties and inflationary pressures. Significant demand in the Energy sector and strategic acquisitions have bolstered its capabilities and market position, particularly in high-compliance environments. The company’s order book and tender pipeline are robust, positioning it well for future growth, especially in the Defence and Mining sectors.

The most recent analyst rating on (AU:DUR) stock is a Hold with a A$2.00 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.