GR Engineering Services Ltd (GNG) AI Stock Analysis

• Market Cap: AU$661.08M
• Dividend Yield: 5.34%
• Average Volume (3M): 203.79K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 0.70
• Revenue Growth: 12.96%
• EPS Growth: 8.19%
• Country: AU
• Employees: 415
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 0.07
• Shares Outstanding: 168,214,900
• 10 Day Avg. Volume: 129,055
• 30 Day Avg. Volume: 203,788
• PEG Ratio: 3.02
• Price to Book (P/B): 7.89
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 15.16
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: AU$4.50 ▲(9.22% Upside)

GR Engineering Services Ltd demonstrates strong financial stability and profitability, supported by positive technical indicators and a fair valuation. The main strengths include low leverage, attractive dividend yield, and a bullish technical outlook. However, challenges in revenue growth and cash flow volatility need to be addressed for sustained long-term performance.

Positive Factors

Financial Stability

Low leverage indicates strong financial health, providing the company with flexibility to invest in growth opportunities without excessive debt burden.

Profitability

High gross profit margins reflect effective cost management and operational efficiency, supporting sustainable profitability over time.

Revenue Streams

Diverse revenue streams from contracts and maintenance provide steady income, reducing reliance on single projects and enhancing financial resilience.

Negative Factors

Revenue Growth Challenges

Declining revenue growth can hinder long-term expansion and market competitiveness, necessitating strategic initiatives to drive sales.

Cash Flow Volatility

Volatile cash flow growth can impact the company's ability to fund operations and investments, posing risks to financial stability.

Revenue Growth

Addressing revenue growth challenges is critical for maintaining competitive advantage and ensuring long-term business success.

GR Engineering Services Ltd Business Overview & Revenue Model

Company Description

GR Engineering Services Ltd (GNG) is a leading engineering services company based in Australia, specializing in the mining and resources sectors. The company offers a comprehensive range of services, including engineering design, project delivery, and asset management, primarily focusing on the development and optimization of mining projects. GNG is known for its innovative solutions and expertise in providing tailored engineering services to enhance operational efficiency and project success.

How the Company Makes Money

GR Engineering Services Ltd generates revenue through multiple streams, primarily by providing engineering, procurement, and construction (EPC) services to the mining and resources sectors. Key revenue streams include contract-based project work, where the company charges clients for specific engineering and construction services, and ongoing maintenance contracts that ensure continual income from established projects. Significant partnerships with major mining companies and participation in large-scale resource projects further bolster its earnings. Additionally, the company may benefit from performance bonuses linked to project milestones and successful project completions, enhancing its financial performance.

GR Engineering Services Ltd Financial Statement Overview

Summary

GR Engineering Services Ltd exhibits strong profitability and financial stability, with impressive margins and low leverage. However, the company faces challenges in revenue growth and cash flow volatility. Continued focus on revenue expansion and cash flow management will be crucial for sustaining long-term growth.

Income Statement

GR Engineering Services Ltd has demonstrated strong profitability with a consistent gross profit margin above 50% in recent years, indicating effective cost management. However, the company has faced challenges in revenue growth, with a decline of 5.87% in the latest year. Despite this, net profit margins have remained stable, reflecting efficient operations.

Balance Sheet

The company's balance sheet shows a healthy debt-to-equity ratio of 0.13, suggesting low leverage and financial stability. Return on equity is impressive at nearly 50%, indicating strong profitability relative to shareholder investments. However, the equity ratio is moderate, suggesting room for improvement in asset management.

Cash Flow

While operating cash flow has been positive, the free cash flow growth rate has been volatile, with a significant decline of nearly 60% in the latest year. The operating cash flow to net income ratio is relatively low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains strong, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	479.02M	479.02M	424.06M	551.36M	651.67M	392.39M
Gross Profit	166.03M	254.86M	232.54M	52.61M	65.77M	40.42M
EBITDA	56.35M	55.44M	50.02M	46.20M	55.93M	34.09M
Net Income	34.21M	34.21M	31.18M	27.49M	34.72M	23.24M
Balance Sheet
Total Assets	192.51M	192.51M	226.75M	193.96M	235.44M	160.29M
Cash, Cash Equivalents and Short-Term Investments	70.96M	70.96M	74.65M	86.02M	101.99M	68.97M
Total Debt	9.18M	9.18M	9.15M	7.23M	4.26M	8.26M
Total Liabilities	123.66M	123.66M	160.43M	134.23M	173.28M	108.65M
Stockholders Equity	68.85M	68.85M	66.33M	59.73M	62.16M	51.64M
Cash Flow
Free Cash Flow	34.49M	35.84M	24.97M	9.86M	65.81M	47.51M
Operating Cash Flow	36.86M	38.21M	29.79M	13.27M	69.42M	49.19M
Investing Cash Flow	-3.02M	-3.02M	-8.27M	4.25M	-3.99M	-1.47M
Financing Cash Flow	-37.34M	-38.69M	-33.51M	-32.94M	-33.13M	-16.35M

GR Engineering Services Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.12
• 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:GNG, the sentiment is Positive. The current price of 4.12 is below the 20-day moving average (MA) of 4.14, above the 50-day MA of 3.94, and above the 200-day MA of 3.43, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 22.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:GNG.

GR Engineering Services Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SXE	76 Outperform	€625.04M	19.60	16.18%	3.13%	45.23%	43.94%
LYL	75 Outperform	AU$523.92M	12.50	29.67%	2.62%	-3.08%	-16.35%
GNP	73 Outperform	AU$1.26B	35.16	25.18%	0.55%	36.30%	82.20%
CVL	72 Outperform	AU$698.19M	16.37	8.35%	4.29%	-21.57%	-34.09%
GNG	71 Outperform	AU$661.08M	19.21	50.61%	5.34%	12.96%	8.19%
DUR	63 Neutral	AU$520.86M	22.20	34.21%	2.31%	3.10%	5.08%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

GR Engineering Services Ltd Corporate Events

GR Engineering Services Ltd Reports Strong FY25 Results and Project Success

GR Engineering Services Ltd reported a significant increase in revenue and EBITDA for FY25, driven by the successful delivery of multiple projects and ongoing major project engagements. The company enhanced its revenue visibility through contract extensions and continued to provide digital solutions to key clients, strengthening its market position and operational impact.

GR Engineering Services Ltd Announces Cessation of Performance Rights

GR Engineering Services Ltd announced the cessation of 125,000 performance rights due to unmet conditions, effective November 17, 2025. This development may impact the company’s capital structure and reflects the challenges in meeting performance conditions, potentially affecting stakeholder perceptions.

GR Engineering Services Ltd Issues New Performance Rights

GR Engineering Services Ltd announced the issuance of 296,500 performance rights under an employee incentive scheme, which are not intended to be quoted on the ASX. This move reflects the company’s ongoing efforts to incentivize its workforce and align employee interests with corporate goals, potentially impacting its operational efficiency and stakeholder engagement positively.

Director’s Shareholding Change at GR Engineering Services

GR Engineering Services Limited has announced a change in the interest of one of its directors, Mr. Giuseppe Totaro. Mr. Totaro has disposed of 3,000,000 ordinary shares, reducing his holding from 8,000,000 to 5,000,000 shares. This transaction was conducted as an on-market trade, valued at $12,300,000. The change in shareholding could have implications for the company’s governance and may affect stakeholder perceptions.

GR Engineering Boosts Employee Incentives with Share Issuance

GR Engineering Services Ltd has issued 595,000 fully paid ordinary shares to its employees as part of the vesting and exercise of Performance Rights under its 2022 Equity Incentive Plan. This move, which was executed without disclosure to investors under the Corporations Act, reflects the company’s commitment to employee incentives and may enhance employee retention and motivation, potentially impacting its operational efficiency and market competitiveness.

GR Engineering Services Ltd Issues New Securities Under Employee Incentive Scheme

GR Engineering Services Ltd announced the issuance of 595,000 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX). This move is part of an employee incentive scheme and reflects the company’s efforts to align employee interests with corporate performance, potentially impacting stakeholder engagement and company operations positively.

GR Engineering Services Ltd Releases 2025 Corporate Governance Statement

GR Engineering Services Ltd has released its corporate governance statement for the financial year ending June 30, 2025, which has been approved by the board as of August 25, 2025. The statement outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, detailing its compliance with governance practices and any deviations along with reasons and alternative practices adopted. This release is significant as it demonstrates the company’s commitment to transparency and accountability, potentially impacting stakeholder confidence and reinforcing its industry positioning.

GR Engineering Services Ltd Announces 2025 AGM and Key Resolutions

GR Engineering Services Ltd has announced its Annual General Meeting scheduled for November 21, 2025, where shareholders will review the company’s financial statements and vote on key resolutions. These include the adoption of the remuneration report, re-election of directors Phillip Lockyer and Peter Hood AO, and approval of the 2025 Equity Incentive Plan. The outcomes of these resolutions could impact the company’s governance and strategic direction, influencing its market positioning and stakeholder relationships.

GR Engineering Announces Details for 2025 Annual General Meeting

GR Engineering Services Limited announced the details of its upcoming Annual General Meeting, scheduled for November 21, 2025, in Western Australia. The company will not send hard copies of the meeting notice unless requested, encouraging shareholders to access documents online. This move aligns with modern communication practices and reflects the company’s commitment to sustainability and efficiency. Shareholders are advised to lodge proxies by November 19, 2025, and update their details for future electronic communications.

GR Engineering Services Ltd Releases 2025 Annual Report

GR Engineering Services Ltd has released its 2025 annual report, detailing its financial performance and corporate governance activities. The report outlines key financial metrics, including profit and loss, cash flows, and changes in equity, as well as the company’s plans for dividend payments and its upcoming annual general meeting.

GR Engineering Services Issues New Performance Rights

GR Engineering Services Ltd announced the issuance of 109,500 performance rights as part of an employee incentive scheme. This move is likely aimed at enhancing employee engagement and aligning their interests with company performance, potentially impacting the company’s operational efficiency and stakeholder value.

GR Engineering Services Updates Dividend Reinvestment Plan Price

GR Engineering Services Ltd announced an update regarding its dividend distribution, specifically the Dividend Reinvestment Plan (DRP) price. This announcement, dated September 18, 2025, updates a previous notification from August 25, 2025, and pertains to the dividend distribution for the six-month period ending June 30, 2025. The update is significant for stakeholders as it provides clarity on the DRP price, which can influence investor decisions and reflect the company’s financial health and strategic direction.

GR Engineering Services Schedules AGM for Director Elections

GR Engineering Services Ltd has announced that its Annual General Meeting will take place on November 21, 2025, where the election of Directors will be a key agenda item. This meeting is significant for stakeholders as it will shape the company’s leadership and potentially influence its strategic direction.