Duratec Limited (AU:DUR)
ASX:DUR
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Duratec Limited
(Sydney:DUR)
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Rating:74Outperform
Price Target:
AU$2.50
â–²(7.76% Upside)
Action:UpgradedDate: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
Revenue growth & improving gross margin
Consistent revenue growth coupled with a rising gross margin indicates durable demand for remediation and maintenance services and improving project pricing or cost control. Over 2-6 months this supports stronger operating leverage, better project profitability and resilience to raw cost moves.
Negative Factors
Modest net profit margin
A sub-4% net margin leaves limited buffer against cost overruns, contract disputes or project delays common in engineering projects. Persistently thin net profitability constrains retained earnings, slows balance sheet strengthening, and raises sensitivity to cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & improving gross margin
Consistent revenue growth coupled with a rising gross margin indicates durable demand for remediation and maintenance services and improving project pricing or cost control. Over 2-6 months this supports stronger operating leverage, better project profitability and resilience to raw cost moves.
Read all positive factors
Duratec Limited (DUR) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$621.42M
Dividend Yield2.25%
Average Volume (3M)452.77K
Price to Earnings (P/E)9.2
Beta (1Y)0.75
Revenue Growth3.10%
EPS Growth5.08%
CountryAU
Employees1,132
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.05
Shares Outstanding257,849,730
10 Day Avg. Volume472,255
30 Day Avg. Volume452,772
Financial Highlights & Ratios
PEG Ratio3.11
Price to Book (P/B)4.86
Price to Sales (P/S)0.63
P/FCF Ratio16.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.40Price Target Upside3.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.11
Revenue Forecast (FY)AU$607.02M
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 Build...
How the Company Makes Money
Duratec makes money primarily by delivering contracted engineering and remediation works for asset owners and operators. Revenue is generated through project-based contracts (e.g., remediation, coatings, structural repair/strengthening and associa...
Duratec Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
75
Positive
| 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
Positive
2.32
Price Trends
2.22
Positive
2.04
Positive
1.86
Positive
Market Momentum
0.07
Negative
59.95
Neutral
75.49
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 2.32 is above the 20-day moving average (MA) of 2.29, above the 50-day MA of 2.22, and above the 200-day MA of 1.86, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 75.49 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | AU$621.42M | 9.20 | 29.27% | 2.25% | 3.10% | 5.08% | |
69 Neutral | AU$264.83M | 12.10 | 9.11% | 5.71% | 25.14% | -14.54% | |
67 Neutral | AU$161.09M | 7.18 | 11.28% | 10.12% | 20.83% | 290.55% | |
65 Neutral | AU$650.42M | 10.83 | 42.55% | 5.24% | 12.96% | 8.19% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | AU$119.63M | -6.43 | -12.62% | 2.78% | -0.72% | -78.03% |
* Industrials Sector Average
AU:DUR
Duratec Limited
2.41
0.77
46.86%
AU:FWD
Fleetwood Limited
1.74
-0.51
-22.74%
AU:ACF
Acrow Formwork and Construction Services Limited
0.85
-0.21
-19.51%
AU:SND
Saunders International Limited
0.87
0.05
5.49%
AU:GNG
GR Engineering Services Ltd
3.82
0.98
34.55%
Duratec Limited Corporate Events
Duratec declares interim dividend for half year to December 2025
Feb 25, 2026
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...
Duratec lifts margins and expands pipeline despite lower first-half revenue
Feb 24, 2026
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 p...
Duratec issues 1H FY26 results presentation with detailed legal caveats
Feb 24, 2026
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 objective...
Duratec Lifts Profit, Expands Energy Capabilities Despite Revenue Dip
Feb 24, 2026
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 ...
Duratec to Host Investor Webinar on FY26 Half-Year Results
Jan 30, 2026
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 ques...
Duratec Updates Market on Lapse of 315,179 Conditional Rights
Jan 9, 2026
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...
Duratec JV Advances Early Procurement for AUKUS-Linked Upgrades at HMAS Stirling
Jan 7, 2026
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 infra...
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.