Ventia Services Group (ASX:VNT) used its full-year FY2025 results presentation to highlight profit growth, record contract wins and improved safety metrics, while also disclosing that CEO Dean Banks plans to return to the UK in the fourth quarter of the calendar year.
Chairman David Moffatt said the board’s succession planning is “well underway,” adding that Banks has the board’s support to continue leading the business through most of the financial year. Moffatt credited Banks with strengthening the company “operationally, strategically, and culturally,” and said Ventia has been positioned as a trusted long-term partner for customers.
Safety update includes improved injury rate and a fatal incident
However, Banks said the company was “deeply saddened” to report the death of employee Jack McGrath in a fatal incident at Port Kembla in November. Banks said Ventia is committed to learning from the tragedy and strengthening safety practices across work sites, emphasizing that “safety is our license to operate.”
FY2025 financial highlights: revenue, margin and cash conversion gains
Banks said the reported figures discussed in the presentation exclude a one-off positive gain from the novation of the Toowoomba Second Range Crossing contract, which is included in statutory financials. On that underlying basis, Ventia reported:
- Revenue of AUD 6.1 billion
- EBITDA up 6.6% to AUD 532 million, with EBITDA margin rising to 8.7%
- NPAT up 13% to AUD 258 million, which Banks said was above upgraded guidance
- Cash conversion of 93.6%, up 2.2 percentage points and marking a fifth consecutive year of improvement
CFO Mark Fleming added that since 2021, revenue has risen 35%, EBITDA has grown 40%, and NPATA has increased 75%, while earnings per share has climbed 98% over the same period. Fleming said Ventia’s EPS grew 17.9% year over year, noting the increase outpaced profit growth due to the on-market buyback program reducing shares on issue.
Fleming also outlined below-the-line movements, including a 4.6% decline in depreciation (down AUD 4.9 million) and a 37% decrease in amortization (down AUD 12.4 million) as acquired customer contracts became fully amortized during the year.
Record work winning lifts work in hand to AUD 22.1 billion
Management emphasized contract momentum as a key theme of the year. Banks said work in hand increased 14.4% to a record AUD 22.1 billion. Ventia secured AUD 8.2 billion of new work and renewals across 10 material contract awards, including three contracts each valued above AUD 1 billion. Banks said these wins extended average contract tenure from 5.7 years to 6.4 years and meant Ventia entered FY2026 with more than 85% of revenue secured.
Banks also highlighted cross-sell progress, with cross-sell revenue rising 25% year over year to AUD 145 million.
Among major awards discussed:
- Two NBN contract awards (field module and Fibre to the Node) with a combined value of AUD 3.2 billion over the term
- A significant Telstra contract award, which management said supported Ventia’s position in telco services amid supplier rationalization
- Defence Base Services Transformation Program packages valued at AUD 2.7 billion over six years, with mobilization completed February 1
- An initial seven-year Defence clothing services agreement valued at AUD 935 million, with a broader expanded clothing scope commencing in May 2026
On Defence clothing, Banks said Ventia will become the sole provider from design through to disposal for Army, Navy, and Air Force personnel, following a collaborative bid process aimed at transforming the existing clothing system.
Segment performance and capital allocation: dividends, buybacks, CapEx and M&A
Fleming detailed performance by sector. Defence and Social Infrastructure revenue fell 7% to AUD 2.4 billion due to lower Defence Base Services project work and exited or revised scope on some lower margin contracts. Despite that, sector EBITDA rose 13.3% to AUD 205 million, which Fleming attributed to a shift toward higher margin work and cost management.
Infrastructure Services revenue increased 8.4% and EBITDA rose 17% to AUD 129 million, driven by the full-year benefit of contracts commencing in FY2024, including Western Power and Southeast Queensland Water. Fleming said he expects the mix shift to higher margin end markets to continue in 2026.
Telecommunications posted revenue growth of 6.1% and EBITDA growth of 4.3%, which Fleming said reflected an “excellent second half” supported by the mobilization of the five-year Telstra contract in January and AUD 3.4 billion of new work secured in FY2025, including an NBN field module contract worth AUD 2.1 billion and AUD 1.1 billion in NBN copper-to-fibre upgrades.
In Transport, revenue rose 1.8% and EBITDA increased 6.5% despite the Toowoomba contract novation, while margin improved 0.4% on mix and cost actions. Fleming pointed to significant longer-dated work in hand including Western Harbour Tunnel, North East Link, and Torrens to Darlington, with commencements in 2028, 2029, and 2031, respectively.
On shareholder returns, Fleming said the total FY2025 dividend increased 16.4% to AUD 0.2325 per share. The company announced a final dividend of AUD 0.1254 per share, up 18%, payable April 9, representing a 75% payout of NPATA within its 60%–80% policy range. He said the dividend is 90% franked and Ventia expects to maintain that level until reaching 100% “in the next few years.”
Ventia also completed nearly AUD 138 million of its on-market buyback at an average price of AUD 4.72 per share, and announced an additional AUD 100 million extension, bringing the total buyback program to AUD 250 million across 2025 and 2026. Fleming said net debt to EBITDA rose to 1.3x due to the buyback, remaining within the company’s 1–2x target band, and he expects leverage to move toward the middle of that range as the next tranche is executed. He also reported cash on hand of AUD 236 million and total liquidity of AUD 636 million, with S&P and Moody’s ratings unchanged.
Capital expenditure rose to AUD 109 million, or 1.8% of revenue, driven by investment in rigs and wells and digital capabilities. Fleming said Ventia’s SAP upgrade to S/4HANA is on track for completion by end-2026, and he expects CapEx to temporarily rise to around 2.5% of revenue in 2026 before normalizing back to 1%–2%.
On acquisitions, Fleming said Ventia remains focused on organic growth, with bolt-on M&A as an “add-on.” He noted the acquisition of PowerNet, which expands high-voltage electricity infrastructure capability, is performing well and fully integrated.
FY2026 guidance and Q&A themes: Defence softness, telco ramp, and AUKUS positioning
For FY2026, Banks guided to NPATA growth of 7%–10%, with performance weighted to a stronger second half, consistent with 2025. He said Ventia expects resilient cash conversion and further margin improvement, alongside a dividend payout targeted at 75% of NPA and the additional AUD 100 million buyback increment.
In Q&A, management said Defence and Social Infrastructure could see further Defence Base Services revenue reduction in 2026, particularly in the first half, reflecting territory changes, with Defence clothing expected to come online later. On telecommunications, Banks said 2026 should benefit from a full-year contribution from recently mobilized Telstra and NBN contracts, suggesting the second-half run rate is a useful indicator, subject to volumes.
Asked about Infrastructure Services margin improvement, Banks said the company prioritizes “quality of revenue,” noting a transition away from more competitive resources-related work toward energy and water markets with better commercial terms and growth potential. On capital works exposure tied to AUKUS, Banks reiterated Ventia’s preference for services and risk-managed delivery, saying the company sees itself primarily as an operations and maintenance provider in Western Australia rather than taking on higher-risk construction.
About Ventia Services Group (ASX:VNT)
Vontier Corporation engages in the research and development, manufacture, sale, and distribution of technical equipment, components, software, and services for manufacturing, repairing, and servicing in the mobility infrastructure industry worldwide. The company offers a range of solutions, including environmental sensors, fueling equipment, field payment hardware, point-of sale, workflow and monitoring software, vehicle tracking and fleet management, software solutions for traffic light control, and vehicle mechanics’, and technicians’ equipment.
