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Revenue: AUD6.1 billion. EBITDA: AUD532 million, a 6.6% increase. EBITDA Margin: 8.7%. NPATA Growth: 13% to AUD258 million. Cash Conversion: 93.6%, up 2.2 percentage points. Work in Hand: AUD22.1 billion, up 14.4%. New Work and Renewals Secured: AUD8.2 billion. Dividend Declared: AUD0.2325 per share, a 47.6% increase over three years. Earnings Per Share Growth: 16.8% CAGR over three years. Net Debt to EBITDA: 1.3 times. CapEx: AUD109 million, 1.8% of revenue. Final Dividend: AUD0.1254 per share, up 18%. Total Liquidity: AUD636 million.

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Release Date: February 19, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Ventia Services Group Ltd (ASX:VNT) reported a 15% improvement in Total Recordable Injury Frequency Rate, reflecting a 35% reduction over five years, showcasing a commitment to safety. The company achieved a record high work in hand of AUD22.1 billion, up 14.4%, providing confidence in future growth ambitions. Ventia secured AUD8.2 billion in new work and renewals, entering 2026 with over 85% of revenue secured and an average contract tenure of 6.4 years. The company declared a total dividend of AUD0.2325 per share, a 47.6% increase over three years, highlighting strong returns to shareholders. Ventia's EBITDA margin increased to 8.7%, reflecting a strategic focus on quality of revenue and operational performance improvements.

Negative Points

A Ventia employee was involved in a fatal incident, highlighting ongoing challenges in ensuring workplace safety. Defence and social infrastructure revenue declined by 7% due to lower defence-based services project work and revised scope on some contracts. The company anticipates further reduction in defence-based services revenue in 2026, impacting overall revenue growth. Ventia's net debt to EBITDA increased to 1.3 times due to the buyback, indicating higher leverage within the target range. The company expects CapEx to temporarily increase to approximately 2.5% of revenue in 2026 due to the SAP system upgrade, impacting short-term cash flow.

Q & A Highlights

Q: Can you provide insights into the defence and social infrastructure segment's performance and expectations for 2026? A: Dean Banks, CEO, explained that the defence and social infrastructure segment experienced some softness in 2025, partly due to budgetary constraints and contract changes. While there were successful contract awards, there will likely be a reduction in defence-based services revenue in 2026, particularly in the first half. However, growth in other segments, such as telecommunications and infrastructure services, is expected to offset this reduction.

Story Continues

Q: How is the ramp-up of the new Telstra and NBN contracts progressing, and what should we expect for 2026? A: Dean Banks noted that the Telstra and NBN contracts were successfully mobilized in 2025, and the company expects to see full-year benefits in 2026. The second half of 2025 provides a good indicator of the expected performance in 2026, with the company maintaining its position and gaining market share in the telecommunications sector.

Q: Why did Ventia choose to extend the buyback program to AUD250 million, and why not higher? A: Mark Fleming, CFO, explained that the buyback is part of the company's capital allocation framework, which considers maintaining financial strength and flexibility within a net debt to EBITDA range of 1 to 2 times. The buyback is also managed to avoid impacting the share price and to retain capacity for growth investments. The company will reassess the buyback program in August.

Q: What factors contributed to the margin improvement in the infrastructure services (IS) segment? A: Dean Banks highlighted that the focus on quality of revenue and being selective in opportunities contributed to margin improvement. The company transitioned from lower-margin resources components to higher-margin energy and water sectors, where there is better commercial potential. This strategic shift is yielding positive results, with further growth expected.

Q: What is Ventia's approach to potential acquisitions, and is there any change in strategy? A: Mark Fleming stated that the focus remains on organic growth, with acquisitions being complementary to the company's strategy. Ventia has completed four small bolt-on acquisitions that support its core business. The company continues to prioritize organic growth while considering acquisitions that add capabilities, geographies, or customer relationships.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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