Duratec Limited (DUR) AI Stock Analysis

• Market Cap: AU$541.48M
• Dividend Yield: 2.25%
• Average Volume (3M): 452.77K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.08
• Revenue Growth: 3.10%
• EPS Growth: 5.08%
• Country: AU
• Employees: 1,132
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.05
• 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$2.40
• Price Target Upside: 14.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): AU$617.52M

• Rating: 74 Outperform
• Price Target: AU$2.50 ▲(19.05% Upside)
• Action: Upgraded Date: 01/09/26
• Date: Action: Upgraded 01/09/26

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

High Return on Equity

A 30.71% ROE indicates the company is effectively deploying shareholder capital to generate profits. Persistently high ROE reflects durable operational efficiency and strong capital allocation, supporting reinvestment and shareholder returns over the next several quarters.

Strong free cash flow generation

Large free cash flow growth and a 0.61 FCF/net income conversion show improving cash conversion. Strong cash generation enhances financial flexibility to fund working capital, capex, debt service or dividends without relying heavily on external capital.

Recurring demand from ageing infrastructure

The business focuses on remediation, protective coatings and ongoing maintenance for long‑lived assets. That creates a structural, repeatable revenue stream as infrastructure ages, supporting visibility and steadier backlog across sectors like utilities and defence.

Negative Factors

Low net profit margin

A sub-4% net margin leaves limited cushion against cost overruns or contract disputes in a project-based business. Over the medium term this constrains retained earnings, reduces tolerance for project slippage, and limits capacity to build reserves during downturns.

Rising leverage

An increased debt-to-equity ratio to 0.66 signals greater reliance on debt financing. Higher leverage raises fixed servicing obligations and refinancing risk, making the company more vulnerable to cash‑flow volatility or rising interest rates over the coming quarters.

Project concentration and execution risk

Dependence on lump-sum and large project contracts concentrates revenue and makes profitability sensitive to bidding success and execution. Persistent performance requires disciplined project management, procurement control and client relationships to avoid margin erosion.

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	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	559.08M	573.03M	555.79M	491.80M	310.00M	235.71M
Gross Profit	37.82M	106.31M	96.17M	82.07M	48.41M	45.81M
EBITDA	44.90M	47.84M	45.64M	37.47M	15.90M	15.15M
Net Income	23.28M	22.83M	21.43M	19.20M	7.76M	7.13M
Balance Sheet
Total Assets	243.60M	251.37M	225.40M	212.43M	137.62M	105.22M
Cash, Cash Equivalents and Short-Term Investments	76.01M	84.03M	65.22M	66.19M	58.26M	41.25M
Total Debt	60.42M	49.39M	19.72M	18.32M	14.81M	13.41M
Total Liabilities	158.85M	177.05M	166.28M	166.37M	106.67M	79.30M
Stockholders Equity	84.75M	74.33M	59.12M	46.06M	30.96M	25.92M
Cash Flow
Free Cash Flow	21.97M	22.01M	11.03M	22.20M	20.59M	-2.37M
Operating Cash Flow	31.02M	36.06M	27.28M	35.20M	28.03M	8.17M
Investing Cash Flow	-12.97M	-14.37M	-24.46M	-22.22M	-5.09M	-8.52M
Financing Cash Flow	-2.83M	-2.88M	-3.79M	-4.70M	-4.42M	1.82M

Duratec Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 2.1 is below the 20-day moving average (MA) of 2.19, above the 50-day MA of 2.08, and above the 200-day MA of 1.80, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 45.53 is Neutral, neither overbought nor oversold. The STOCH value of 49.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$541.48M	22.95	34.21%	2.25%	3.10%	5.08%
ACF	69 Neutral	€299.10M	14.46	16.13%	5.71%	25.14%	-14.54%
GNG	68 Neutral	AU$860.83M	28.69	50.61%	5.24%	12.96%	8.19%
FWD	66 Neutral	€199.05M	10.77	8.79%	10.12%	20.83%	290.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SND	56 Neutral	AU$116.17M	-15.03	4.01%	2.78%	-0.72%	-78.03%

Duratec Limited Corporate Events

Duratec declares interim dividend for half year to December 2025

Duratec Limited has declared an interim dividend of AUD 0.0175 per ordinary fully paid share, relating to the half year ended 31 December 2025, reinforcing its pattern of distributing profits to shareholders. The dividend will trade ex on 17 March 2026, with a record date of 18 March 2026 and payment scheduled for 29 April 2026, while shareholders have until 19 March 2026 to make any dividend reinvestment plan elections, underscoring a structured capital management approach that may appeal to income-focused investors.

The announcement signals ongoing profitability and cash generation sufficient to support an interim payout, which can be interpreted as a vote of confidence by the board in the company’s financial position. The timing and clarity of the dividend timetable provide certainty for existing shareholders and may enhance the stock’s attractiveness relative to peers that do not provide such regular distributions, although the broader strategic implications are not detailed in the release.

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 lifts margins and expands pipeline despite lower first-half revenue

Duratec Limited reported 1H FY26 revenue of $273.3 million, down 4.9% on the prior corresponding period, but lifted normalised EBITDA 2% to $27.5 million and expanded its average gross margin to 20.3%. Earnings quality improved with record gross profit of $55.4 million, a record 10% normalised EBITDA margin, and EPS edging up to 5.25 cents, while the interim dividend was maintained at 1.75 cents per share.

The company strengthened its market position through the successful acquisition and integration of EIG Australia and the purchase of RGK Resources, alongside a further $9 million in early works for the Duratec Ertech joint venture at HMAS Stirling. A solid forward workload is underpinned by a $400 million order book and a $1.8 billion tender pipeline, and new accreditation to ISO 19443 positions Duratec to participate in nuclear-industry services, adding another avenue for future sector growth.

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 issues 1H FY26 results presentation with detailed legal caveats

Duratec Limited has released a presentation of its first-half FY26 results, framing the document strictly as informational and not as investment or financial product advice. The company emphasises that investors should consider their own objectives and seek professional advice, underscoring that no warranty is given on the completeness or accuracy of the information.

The release highlights extensive legal disclaimers, stressing the risks and uncertainties inherent in any forward-looking content and denying liability for losses arising from use of the material. It also clarifies that the document does not constitute an offer or solicitation to buy or sell securities, particularly in restricted jurisdictions such as the United States, which may affect how and where Duratec engages current and prospective investors.

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 Lifts Profit, Expands Energy Capabilities Despite Revenue Dip

Duratec Limited reported first-half FY26 revenue of $273.3 million, down 5% year on year, while profit after tax rose 4% to $13.4 million, supported by higher net tangible assets per share of 25.45 cents. The board maintained capital returns with a fully franked final 2025 dividend of 2.5 cents per share already paid and declared an interim 2026 dividend of 1.75 cents per share, supported by an active dividend reinvestment plan.

Operationally, Duratec expanded its capabilities by acquiring EIG Australia, an electrical infrastructure provider specialising in fuels and fluid transfer, and by forming DXP Energy Solutions, a 70%-owned joint venture with Proxima Energy targeting end-to-end services across the energy asset lifecycle. These moves deepen Duratec’s service offering in energy and infrastructure, potentially strengthening its competitive position and diversifying earnings despite softer top-line growth.

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 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.