Perenti's FY24 free cash flow exceeds expectations

Perenti Limited (ASX: $PRN) has announced that its preliminary unaudited results indicate the free cash flow for FY24 is expected to be approximately AUD$180 million, significantly surpassing the Company's guidance of more than $100 million. The final number is subject to completion of the full year audit.

Executive commentary on FY24 free cash flow

Mark Norwell, Managing Director & Chief Executive Officer of Perenti, expressed, 'This result is further evidence that our business can return meaningful value to our shareholders. In recent years we have built a global business of scale with a proud history of underground expertise, surface mining, production and exploration drilling, and supporting mining services that distinguishes us in our peer group. Our global leading underground and drilling businesses will become increasingly critical to deliver the minerals required to transition to an electrified economy. This has positioned us to deliver additional upside as demand increases for drilling services and continues for underground mining capability. We look forward to continuing to deliver for our clients, our shareholders, and our valuable staff in the years to come.' Peter Bryant, Chief Financial Officer of Perenti, added, 'I am proud to see the investment and effort of Perenti during the past years delivering another year of strong free cash flow. The seeds of this success were sown back in 2018 with the merger of the Barminco and Ausdrill businesses, and further enhanced through the successful acquisition of DDH1. Since the inception of Perenti, the goal has always been to build a business capable of both sustainable growth and strong free cash flow, which we have delivered, and will continue to deliver, with an ongoing focus on returns to shareholders.'

Summary of Perenti's FY24 free cash flow announcement

Perenti Limited (ASX: $PRN) has reported a significant improvement in free cash flow generation for FY24, with preliminary unaudited results indicating a figure of approximately AUD$180 million, well above the Company's guidance of more than $100 million. The increase in free cash flow can be attributed to above forecast debtor collection and a reduction in capital expenditure. The Company expects to deliver continued strong free cash flow in FY25 and has affirmed its Revenue, EBIT(A) and Leverage guidance provided earlier. The Managing Director & Chief Executive Officer, Mark Norwell, highlighted the global business's capability to return meaningful value to shareholders and its positioning to capitalize on the increasing demand for drilling services and underground mining capability. The Chief Financial Officer, Peter Bryant, emphasized the company's sustained focus on sustainable growth and strong free cash flow, underpinned by past strategic mergers and acquisitions. Perenti will release the final audited cash flows and FY25 guidance in late August.