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Perenti Global
(Sydney:PRN)
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Rating:75Outperform
Price Target:
AU$2.50
▲(19.62% Upside)
Action:Reiterated
Date:02/23/26
The score is driven primarily by strong financial performance (profitability and cash flow strength with moderate leverage) and a positive earnings call featuring upgraded free cash flow guidance and improved balance sheet metrics. These are tempered by only mixed technical signals (negative MACD and trading slightly below the 50DMA) and a mid-range valuation (P/E ~21 with a moderate ~2.6% yield).
Positive Factors
High gross margin & improving net margin
Perenti's very high gross margin and improving net margin reflect durable contract pricing power and effective cost control across its services. Strong unit economics reduce sensitivity to volume swings, support reinvestment and dividends, and underpin sustainable operating leverage if execution and fleet efficiency persist.
Negative Factors
Second-half weighted earnings and cash flow
Concentrating most earnings and cash generation in H2 concentrates execution and timing risk: missed mobilisations, delayed receipts, or project setbacks in the back half can materially undermine full‑year targets. This seasonal profile reduces near‑term predictability and raises operational execution demands.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margin & improving net margin
Perenti's very high gross margin and improving net margin reflect durable contract pricing power and effective cost control across its services. Strong unit economics reduce sensitivity to volume swings, support reinvestment and dividends, and underpin sustainable operating leverage if execution and fleet efficiency persist.
Read all positive factors
Perenti Global (PRN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$1.95B
Dividend Yield3.47%
Average Volume (3M)3.12M
Price to Earnings (P/E)16.1
Beta (1Y)1.36
Revenue Growth1.39%
EPS Growth40.82%
CountryAU
Employees10,290
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.13
Shares Outstanding934,800,350
10 Day Avg. Volume3,128,554
30 Day Avg. Volume3,119,379
Financial Highlights & Ratios
PEG Ratio0.69
Price to Book (P/B)0.83
Price to Sales (P/S)0.43
P/FCF Ratio7.57
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.79Price Target Upside33.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.21
Revenue Forecast (FY)AU$3.62B
Perenti Global Business Overview & Revenue Model
Company Description
Perenti Limited operates as a mining services company worldwide. The company operates through Contract Mining, Drilling Services, and Mining and Technology Services segments. It offers underground and surface contract mining, exploration drilling,...
How the Company Makes Money
Perenti primarily makes money by contracting with mine owners to deliver mining and drilling services under agreed commercial terms, earning revenue for providing people, equipment, and operational execution over the life of a project. Key revenue...
Perenti Global Earnings Call Summary
Earnings Call Date:Feb 22, 2026
(Q2-2026)
| Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive operational and financial update: record first-half EBITA, double-digit underlying profit and EPS growth, stronger balance sheet metrics (lower leverage, reduced interest costs, improved liquidity) and a sizeable secured pipeline and North American momentum. The company acknowledged transitional and timing-related challenges (conclusion of a large Botswana contract, temporary margin impacts from mobilizations, below-expectation parts sales, FX loss and H1 cash timing volatility) and noted currency headwinds that temper the upside of revenue/EBITA guidance. On balance, the positive improvements in profitability, cash generation guidance upgrade, capital structure strengthening and clear pipeline opportunities outweigh the manageable short-term and transitional weaknesses.Positive Updates
Record First Half EBITA
EBITA reached a new first-half record of $160 million, up 3% year-on-year, with EBITA margin improving to 9.3% from 9.0%, driven by portfolio mix improvements and the conclusion of underperforming contracts.
Negative Updates
Slightly Lower EBITDA and Transitional Impacts
EBITDA was slightly lower compared with the prior corresponding period due to the completion of the large Botswana underground project (circa $120 million in prior-period revenue), creating a transitional mix effect that weighted earnings and cash flow to the second half.
Read all updates
Q2-2026 Updates
Positive
Negative
Record First Half EBITA
EBITA reached a new first-half record of $160 million, up 3% year-on-year, with EBITA margin improving to 9.3% from 9.0%, driven by portfolio mix improvements and the conclusion of underperforming contracts.
Read all positive updates
Company Guidance
Guidance summary: Perenti has revised FY'26 guidance with free cash flow upgraded to greater than $170m and capital expenditure guidance reduced to $325m, noting earnings and cashflow will be second‑half weighted; H1 revenue was $1.73bn, H1 EBITA a record $160m (9.3% margin), underlying NPATA $92m (up ~12%, 5.3% margin) and underlying EPS $0.098 (up 12%), normalized H1 free cash flow $33.1m (cash conversion 77% in H1, targeting >95% for the full year), H1 operating cash flow before interest & tax $193m, H1 depreciation $157m (~9% of revenue), H1 capex $170.7m, H1 drilling revenue $422m (up 9% YoY), interest expense $28m (down 20% YoY), net leverage 0.6x (from 0.9x), cash $275m and liquidity $818m (including $543m undrawn), secured work in hand $5.8bn and pipeline $18.6bn, with expected H2 EBITA bridge of $10–15m from contract mining and $5–10m from drilling services.Perenti Global Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.49B | 3.49B | 3.34B | 2.88B | 2.44B | 2.09B |
| Gross Profit | 623.20M | 2.46B | 596.31M | 504.44M | 385.99M | 322.07M |
| EBITDA | 656.62M | 667.68M | 625.33M | 545.18M | 405.80M | 276.79M |
| Net Income | 122.68M | 120.61M | 95.48M | 95.74M | 40.66M | -55.14M |
Balance Sheet | ||||||
| Total Assets | 3.16B | 3.33B | 3.36B | 2.87B | 2.84B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 275.15M | 481.32M | 459.14M | 307.36M | 348.52M | 264.74M |
| Total Debt | 660.48M | 786.04M | 928.60M | 806.36M | 901.86M | 768.00M |
| Total Liabilities | 1.25B | 1.46B | 1.57B | 1.44B | 1.51B | 1.27B |
| Stockholders Equity | 1.86B | 1.83B | 1.76B | 1.41B | 1.31B | 1.29B |
Cash Flow | ||||||
| Free Cash Flow | 180.31M | 199.65M | 152.64M | 24.20M | -126.64M | 9.50M |
| Operating Cash Flow | 490.82M | 510.10M | 487.79M | 398.12M | 341.30M | 288.12M |
| Investing Cash Flow | -209.26M | -223.92M | -382.73M | -275.29M | -311.83M | -202.02M |
| Financing Cash Flow | -266.12M | -271.41M | 52.85M | -173.13M | 48.82M | -138.37M |
Perenti Global Technical Analysis
Negative
2.09
Price Trends
2.17
Negative
2.09
Positive
2.41
Negative
Market Momentum
-0.02
Positive
42.86
Neutral
23.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:PRN, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.23, below the 50-day MA of 2.17, and below the 200-day MA of 2.41, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.86 is Neutral, neither overbought nor oversold. The STOCH value of 23.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:PRN.
Perenti Global Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | AU$1.81B | 20.95 | 13.05% | 2.24% | 13.92% | 95.48% | |
75 Outperform | AU$1.95B | 16.13 | 6.65% | 2.46% | 1.39% | 40.82% | |
67 Neutral | AU$1.80B | 20.04 | 11.52% | ― | 48.61% | ― | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | AU$113.66M | 12.59 | 13.72% | ― | -6.93% | 96.28% |
* Basic Materials Sector Average
AU:PRN
Perenti Global
2.14
0.43
24.93%
AU:MAH
Macmahon Holdings Limited
0.96
0.68
244.09%
AU:DVP
Develop Global Limited
5.66
1.12
24.67%
AU:MSV
Mitchell Services Limited
0.53
0.25
89.53%
Perenti Global Corporate Events
Perenti Provides Daily Update on Ongoing On-Market Share Buy-Back
Jun 30, 2026
Perenti Limited, listed on the ASX under the ticker PRN, is actively managing its capital structure through on-market transactions in its ordinary fully paid shares. The company’s disclosures indicate a focus on maintaining transparency arou...
Perenti Cancels Shares Under On‑Market Buy‑Back
Jun 30, 2026
Perenti Limited has notified the cessation of 348,548 ordinary fully paid shares on the ASX, following their cancellation under an on‑market share buy‑back completed on June 30, 2026. The reduction in issued capital marginally increase...
Perenti cancels over 1 million shares in on‑market buy‑back
Jun 29, 2026
Perenti Limited has cancelled 1,049,276 ordinary fully paid shares as part of an on‑market buy‑back, according to a new Appendix 3H notification lodged with the ASX. The reduction in issued capital reflects the company’s ongoing ...
Perenti Advances On-Market Buy-Back with Continued Daily Share Repurchases
Jun 26, 2026
Perenti Limited has continued its on-market share buy-back program, reporting that a total of 4,905,945 ordinary fully paid shares had been repurchased prior to the latest trading day. The company disclosed that it bought back a further 86,680 sha...
Perenti advances on‑market share buy‑back with continued daily purchases
Jun 25, 2026
Perenti Limited has updated the market on progress under its on‑market share buy‑back program, reporting that it has repurchased a total of 4,731,380 ordinary fully paid shares prior to the latest trading day. The company disclosed tha...
Perenti Updates Market on Progress of On‑Market Share Buy‑Back
Jun 24, 2026
Perenti Limited has disclosed an update to its ongoing on-market share buy-back program covering its ordinary fully paid shares listed on the ASX under code PRN. The latest notification reports that a total of 4,557,397 shares had been repurchased...
Perenti Director Vanessa Torres Increases Shareholding
Jun 24, 2026
Perenti Limited has disclosed a change in the shareholding of director Vanessa Torres, who increased her direct holding in the company. Torres purchased 100,000 ordinary fully paid shares on market for approximately $231,778, raising her total hol...
Perenti Updates Market on Progress of On-Market Share Buy-Back
Jun 23, 2026
Perenti Limited has disclosed an updated notification for its ongoing on-market share buy-back, covering ordinary fully paid shares under the ASX code PRN. The update forms part of a daily reporting process tied to a buy-back program initially not...
Perenti appoints Vanessa Torres to board with 50,000-share holding
May 29, 2026
Perenti Limited has announced the appointment of Vanessa Torres as a director effective 29 May 2026, marking a change in the composition of its board. Alongside her appointment, Torres holds a personal interest of 50,000 ordinary shares in Perenti...
Perenti Discloses Final Director Interest Notice as Mark Norwell Leaves Board
May 29, 2026
Perenti Limited has announced that Mark Alexander John Norwell has ceased to be a director of the company as of 29 May 2026, in a regulatory filing to the ASX. The final director’s interest notice records that Norwell holds no Perenti securi...
Perenti Corrects Technical Error in Ongoing On-Market Share Buy-Back Disclosure
May 13, 2026
Perenti Limited has issued an updated notice to the ASX regarding its on-market share buy-back program for its ordinary fully paid shares. The update clarifies that a daily buy-back notification intended for 6 May 2026 was not lodged on time due t...
Perenti’s Barminco wins A$850m Bellevue underground mining contract
May 12, 2026
Bellevue Gold has awarded Barminco, a Perenti Group company, a four-year underground mining contract at the Bellevue Gold Mine in Western Australia, valued at about A$850 million and commencing on 1 August 2026, with an option for a 12‑month...
Perenti Updates Market on Ongoing On‑Market Share Buy‑Back
May 5, 2026
Perenti Limited has disclosed an update to its on‑market share buy‑back, confirming that a total of 3,827,588 ordinary fully paid shares had been repurchased prior to the latest reporting date. The company reported that a further 105,8...
Perenti Discloses Zero Initial Shareholding for New Director Vincent Nicoletti
May 5, 2026
Perenti Limited has notified the ASX of the initial director’s interest position for newly appointed director Vincent Nicoletti, in line with its disclosure obligations. The filing confirms that Nicoletti currently holds no relevant interest...
Perenti Discloses Final Director Interest Details for Timothy Longstaff
May 5, 2026
Perenti Limited has disclosed that non-executive director Timothy Longstaff will cease to be a director effective 30 April 2026, in line with its obligations under ASX listing rules. The filing shows Longstaff holds no Perenti securities directly,...
Perenti Cancels Over 2.1 Million Shares in On-Market Buy-Back
May 4, 2026
Perenti Limited has notified the ASX of a reduction in its issued capital, following the cessation and cancellation of 2,129,231 ordinary fully paid shares. The move was executed via an on-market buy-back completed on 4 May 2026, reflecting active...
Perenti Updates Daily On-Market Share Buy-Back Activity
May 3, 2026
Perenti Limited has reported an update to its on-market share buy-back program for its ordinary fully paid shares listed on the ASX under the code PRN. The company disclosed that, as of the latest notification, a total of 3,615,791 shares had been...
Perenti Updates Market on Progress of On-Market Share Buy-Back
Apr 30, 2026
Perenti Limited has issued an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that it had repurchased a cumulative total of 3,508,121 shares prior to t...
Perenti strengthens board with appointment of Vincent Nicoletti as independent director
Apr 29, 2026
Perenti has appointed experienced finance and strategy executive Vincent Nicoletti as an independent non-executive director, effective 1 May 2026, adding substantial capital management, risk and performance expertise to its board. His background a...
Perenti Posts Daily Update on Ongoing On-Market Share Buy-Back
Apr 29, 2026
Perenti Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that it repurchased 105,275 shares on the previous trading day, bringing the t...
Perenti Updates Market on Progress of Ongoing Share Buy-Back
Apr 28, 2026
Perenti Limited has provided an update on its on-market share buy-back program for its ordinary fully paid shares traded under ASX code PRN. The company disclosed that, as of 28 April 2026, it had repurchased a cumulative total of 3,297,561 shares...
Perenti Director Diane Smith-Gander Increases Shareholding via On-Market Purchase
Apr 24, 2026
Perenti Limited has disclosed a change in the shareholding of non-executive director Diane Smith-Gander, who increased her direct interest in the company through an on-market purchase. The transaction underscores ongoing board-level alignment with...
Perenti Updates Market on Progress of On-Market Share Buy-Back
Apr 24, 2026
Perenti Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. As of 24 April 2026, the company reported that a total of 3,089,874 shares had been repurcha...
Perenti Updates Market on Progress of On‑Market Share Buy-Back
Apr 23, 2026
Perenti Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back for its ordinary fully paid shares under code PRN. The latest daily report shows that a total of 2,886,434 shares had been repurchased before t...
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.