Perenti (ASX: $PRN) HY24 Results Overview

Perenti Limited (ASX: $PRN) has reported record results for the first half of the financial year 2024 (HY24). The company achieved a revenue of $1.6 billion, marking a 13% increase from the previous corresponding period, driven by the value accretive DDH1 acquisition and strong operational performance across all divisions. EBITDA also saw a significant 11% increase to $312 million, in line with the revenue growth. The company's leverage stood at 0.9x, aligning with expectations and related to the timing of capital expenditures. Perenti has reaffirmed its revenue and earnings guidance for FY24, with reduced net capital expenditure and leverage forecasts. Additionally, the company is targeting to deliver free cash flow of more than $100 million for FY24, reflecting a strong forecast for the second half of the year and a 90% cash conversion rate.

Executive Commentary on Performance and Outlook

The company's performance in HY24 has been exceptional, with the successful integration of DDH1 contributing to the positive financial outcomes. We are pleased to see the strong operational performance across our divisions, which has bolstered our revenue and earnings. The provision for Savannah had a partial impact on our underlying operational performance, but we remain optimistic about the outlook for the remainder of FY24. With a focus on safe and respectful workplaces, sustainability priorities, and ongoing delivery of our 2025 strategic objectives, we are committed to maintaining our track record of delivery and creating enduring value for our stakeholders.

Summary of HY24 Results and Outlook

Perenti's HY24 results reflect a period of significant growth and achievement, driven by the successful DDH1 acquisition and robust operational performance. The company's reaffirmed revenue and earnings guidance for FY24, along with the target of delivering free cash flow of over $100 million, demonstrate a positive outlook for the remainder of the financial year. With a strong focus on safety, sustainability, and value accretive strategic objectives, Perenti aims to optimize overheads, extract synergies from DDH1, and progress with Zone 5 contractual rate negotiations. The company's track record of delivery and commitment to its 2025 targets position it well for continued success and value creation for its investors, clients, and communities.