Duratec Limited (DUR) AI Stock Analysis

• Market Cap: AU$515.70M
• Dividend Yield: 2.25%
• Average Volume (3M): 452.77K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.04
• 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: 5.00% Upside
• 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 ▲(25.00% 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

Consistent mid-single-digit revenue growth across years reflects steady demand for maintenance and refurbishment across infrastructure, energy and resources. Durable project-based contracts and diversified service lines support predictable cash inflows and reduce reliance on any single sector over coming quarters.

Improving Gross Margin

An improved gross margin at 18.55% indicates stronger cost control and pricing power in core coating, corrosion and repair services. Higher gross margins provide a structural cushion against input cost volatility, enabling sustainable operating profitability and reinvestment capacity over multiple quarters.

Strong ROE and Cash Generation

High ROE (30.71%) combined with substantial free cash flow growth (54.29%) signals effective capital allocation and improving cash conversion. These durable strengths support investment in capabilities, debt reduction or shareholder returns, enhancing financial flexibility across the medium term.

Negative Factors

Modest Net Profitability

A low net margin of 3.98% constrains retained earnings and the buffer available for downturns, despite stronger gross margins. Persistently modest net profitability limits capacity to self-fund growth or absorb rising overhead and interest costs without eroding returns to shareholders over time.

Rising Leverage

Debt-to-equity at 0.66 indicates increased reliance on debt financing, raising fixed obligations. With modest net margins, higher leverage elevates financial risk, potentially constraining capital allocation flexibility and increasing vulnerability to interest rate or demand shocks over the medium term.

Lower Cash Conversion of Earnings

An OCF-to-net-income ratio of 0.25 shows earnings convert to cash only partially, suggesting volatility from working capital or accruals. Even with rising free cash flow, inconsistent cash conversion can pressure liquidity during project cycles and increase dependence on external funding.

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

Duratec Limited exhibits strong financial health with consistent revenue growth and efficient cost management. While profitability margins are stable, there is potential for improvement. The balance sheet shows increased leverage, which should be monitored. Cash flow generation is robust, supporting the company's operational and strategic initiatives.

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: 2.00
• 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 is above the 20-day moving average (MA) of 1.87, above the 50-day MA of 1.88, and above the 200-day MA of 1.70, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.68 is Neutral, neither overbought nor oversold. The STOCH value of 69.06 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$515.70M	21.98	34.21%	2.25%	3.10%	5.08%
GNG	71 Outperform	AU$725.00M	20.87	50.61%	5.24%	12.96%	8.19%
ACF	69 Neutral	AU$323.84M	13.74	16.13%	5.71%	25.14%	-14.54%
FWD	68 Neutral	AU$246.27M	17.12	8.79%	10.12%	20.83%	290.55%
SND	64 Neutral	AU$123.08M	51.74	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 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.

Duratec Limited Announces Virtual 2025 Annual General Meeting

Duratec Limited has announced its 2025 Annual General Meeting, which will be held virtually on November 20, 2025. The company emphasizes the importance of shareholder participation and offers options for electronic communication to enhance efficiency and reduce environmental impact. Shareholders can participate in the meeting via a live webcast, ask questions, and vote online. Duratec encourages shareholders to update their communication preferences to receive documents electronically, aligning with its commitment to sustainability.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.20 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Limited Announces Director’s Share Acquisition

Duratec Limited has announced a change in the director’s interest in securities, specifically involving Martin Brydon. On October 15, 2025, Brydon acquired 764 fully paid ordinary shares under a dividend reinvestment plan, increasing his total holdings to 85,179 shares. This transaction did not occur during a closed period, indicating compliance with trading regulations.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.20 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Limited Announces Quotation of New Securities

Duratec Limited has announced the quotation of 407,603 fully paid ordinary securities on the Australian Securities Exchange (ASX) as of October 15, 2025. This move is part of a dividend or distribution plan, potentially enhancing the company’s liquidity and market presence, thereby benefiting its stakeholders.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.20 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.

Duratec Limited Updates Securities Trading Policy to Enhance Compliance and Market Confidence

Duratec Limited has released a revised Securities Trading Policy in compliance with ASX Listing Rule 12.10, aimed at ensuring compliance with insider trading laws and maintaining market confidence. The policy outlines trading restrictions, exceptions, and procedures for obtaining clearance, thereby safeguarding the company’s reputation and supporting shareholder and investor confidence.

The most recent analyst rating on (AU:DUR) stock is a Buy with a A$2.20 price target. To see the full list of analyst forecasts on Duratec Limited stock, see the AU:DUR Stock Forecast page.