Q4 2026 Boom Logistics Ltd Earnings Call

August 19, 2026

Operator: 2, 1.

Speaker #3: 2.

Speaker #4: Morning, everyone, and thank you for joining us. For those less familiar with Boom, we're Australia's only ASX-listed crane and lifting company, operating nationally across 17 locations.

Les Fernandez: Morning, everyone, and thank you for joining us. Those less familiar with Boom, we are Australia's only ASX-listed crane and lifting company, operating nationally across 17 locations. Cranes and lifting remain at our core. We are increasingly more than a crane business, combining our fleet with engineering, workforce solutions, and technology to meet the broader needs of our customers. FY26 was a strong year for the business, particularly across earnings, margin, cash generation, and how we are managing shareholder capital. Let me get straight into the results. Delighted to present the FY26 result. There are a few numbers I would particularly call out. Revenue increased 2.4% to AUD 271 million. Underlying EBITDA increased to AUD 53.3 million, and underlying NPAT increased 37.6% to AUD 12.8 million. Underlying EPS increased 48.2% to AUD 0.329, and free cash flow increased 83% to AUD 18.3 million. Importantly, margins improved.

Lester Fernandez: Morning, everyone, and thank you for joining us. Those less familiar with Boom, we are Australia's only ASX-listed crane and lifting company, operating nationally across 17 locations. Cranes and lifting remain at our core. We are increasingly more than a crane business, combining our fleet with engineering, workforce solutions, and technology to meet the broader needs of our customers. FY26 was a strong year for the business, particularly across earnings, margin, cash generation, and how we are managing shareholder capital. Let me get straight into the results. Delighted to present the FY26 result. There are a few numbers I would particularly call out. Revenue increased 2.4% to AUD 271 million. Underlying EBITDA increased to AUD 53.3 million, and underlying NPAT increased 37.6% to AUD 12.8 million. Underlying EPS increased 48.2% to AUD 0.329, and free cash flow increased 83% to AUD 18.3 million. Importantly, margins improved.

Speaker #4: Cranes and lifting remain at our core. We're increasingly more than a crane business, combining our fleet with engineering, workforce solutions, and technology to meet the broader needs of our customers.

Speaker #4: FY26 was a strong year for the business, particularly across earnings, margin, cash generation, and how we're managing shareholder capital. Let me get straight into the results.

Speaker #4: Delighted to present the FY26 result. There are a few numbers I'd particularly call out. Revenue increased 2.4% to $271 million. Underlying EBITDA increased to $53.3 million, and underlying NPAT increased 37.6% to $12.8 million.

Speaker #4: Underlying EPS increased 48.2% to $32.9 million, and free cash flow increased 83% to $18.3 million. Importantly, margins improved, and we're generating better earnings and stronger cash from the business while also strengthening the balance sheet.

Les Fernandez: We are generating better earnings and stronger cash from the business while also strengthening the balance sheet. We are very pleased with that result, and it reflects the improvement we are seeing in the underlying business and how we are managing shareholder capital. The next slide puts that FY26 result into a longer-term perspective. Stepping back from the FY26 result, the three-year progression is equally important. Revenue has grown from AUD 260 million to AUD 271 million. EBITDA has increased from AUD 46 million to AUD 52 million, and EPS has more than doubled from AUD 0.16 to AUD 0.329, with the on-market buyback also contributing to the FY26 EPS result. The important point is the relationship between those numbers. We are growing the revenue base while seeing stronger growth in the earnings and returns coming from the business.

Lester Fernandez: We are generating better earnings and stronger cash from the business while also strengthening the balance sheet. We are very pleased with that result, and it reflects the improvement we are seeing in the underlying business and how we are managing shareholder capital. The next slide puts that FY26 result into a longer-term perspective. Stepping back from the FY26 result, the three-year progression is equally important. Revenue has grown from AUD 260 to 271 million. EBITDA has increased from AUD 46 to 52 million, and EPS has more than doubled from AUD 0.16 to 0.329, with the on-market buyback also contributing to the FY26 EPS result. The important point is the relationship between those numbers. We are growing the revenue base while seeing stronger growth in the earnings and returns coming from the business.

Speaker #4: We're very pleased with that result, and it reflects the improvement we're seeing in the underlying business and how we're managing shareholder capital. The next slide puts that FY26 result into a longer-term perspective.

Speaker #4: Stepping back from the FY26 result, the three-year progression is equally important. Revenue has grown from $260 million to $271 million. EBITDA has increased from $46 million to $52 million, and EPS has more than doubled from $16 to $32.9, with the on-market buyback also contributing to the FY26 EPS result.

Speaker #4: The important point is the relationship between those numbers. We're growing the revenue base while seeing stronger growth in the earnings and returns coming from the business.

Speaker #4: This is being supported by better utilization, improved margins, the quality of the work we're taking on, and how we're allocating capital. Now, look at the three-year progression.

Les Fernandez: Being supported by better utilization, improved margins, the quality of the work we are taking on, and how we are allocating capital. When I look at the three-year progression, I see a business producing more from its revenue base and generating better outcomes for our shareholders. That is the direction we are focused on continuing. On to the next slide, the portfolio has also evolved over the year. Resources remain at our core and represented 55% of FY26 revenue, supported increasingly by long-term operational and maintenance work. Infrastructure has grown to 20% of revenue, with transmissions becoming an increasingly important part of our infrastructure business. Renewables, we have deliberately moved to a more selective model, primarily focused on crane and lifting scopes where the commercial terms, risks, and returns are right for Boom. Industrials also remain an area where we see opportunities to build longer-term customer relationships.

Lester Fernandez: Being supported by better utilization, improved margins, the quality of the work we are taking on, and how we are allocating capital. When I look at the three-year progression, I see a business producing more from its revenue base and generating better outcomes for our shareholders. That is the direction we are focused on continuing. On to the next slide, the portfolio has also evolved over the year. Resources remain at our core and represented 55% of FY26 revenue, supported increasingly by long-term operational and maintenance work. Infrastructure has grown to 20% of revenue, with transmissions becoming an increasingly important part of our infrastructure business. Renewables, we have deliberately moved to a more selective model, primarily focused on crane and lifting scopes where the commercial terms, risks, and returns are right for Boom. Industrials also remain an area where we see opportunities to build longer-term customer relationships.

Speaker #4: I see a business producing more from its revenue base and generating better outcomes for our shareholders. That's the direction we're focused on continuing. On to the next slide, the portfolio has also evolved over the year.

Speaker #4: Resources remain at our core and represented 55% of FY26 revenue, supported increasingly by long-term operational and maintenance work. The structure segment has grown to 20% of revenue, with transmissions becoming an increasingly important part of our infrastructure business.

Speaker #4: Renewables: we've deliberately moved to a more selective model, primarily focused on crane and lifting scopes, where the commercial terms, risk, and returns are right for Boom.

Speaker #4: Industrials also remain an area where we see opportunities to build longer-term customer relationships. The change in mix reflects deliberate choices about the work we want to do and the returns we expect from it.

Les Fernandez: Change in mix reflects the deliberate choices about the work we want to do and the returns we expect from it. I will now hand over to Pieter to take you through the financials.

Lester Fernandez: Change in mix reflects the deliberate choices about the work we want to do and the returns we expect from it. I will now hand over to Pieter to take you through the financials.

Speaker #4: I'll now hand over to Peter to take you through the financials.

Speaker #5: Thanks, Lester, and good day to all of you on the call. You heard the key highlights and the broader story of the year, so let me get straight into these financial results.

Pieter Le Roux: Thanks, Les, and good day to all of you on the call. You have heard the key highlights and the broader story of the year, so let me get straight into these financial results. Our revenue up 2% to AUD 271 million. EBITDA increased 4% to AUD 51.8 million, and EBIT increased 11% to AUD 18.6 million. The statutory NPAT comparison needs some context. FY25 included the recognition of a AUD 14 million deferred tax asset, which materially increased statutory NPAT in that year. Also in 2026, we separately identified AUD 2.3 million as costs associated with the Clarke Creek incident, a net AUD 800,000 recoupment relating to the misuse of company funds, and a AUD 300,000 loss on asset sales. Therefore, on an underlying basis, NPAT increased 38% to AUD 12.8 million and underlying EPS increased to AUD 0.329 compared with AUD 0.222 in the previous period.

Speaker #5: Our revenue was up 2% to $271 million, EBITDA increased 4% to $51.8 million, and EBIT increased 11% to $18.6 million. The statutory NPAT comparison needs some context.

Speaker #5: FY25 included the recognition of a $14 million referred deferred tax asset, which materially increased statutory NPAT in that year. Also, in 2026, we separately identified $2.3 million of costs associated with the Clark Creek incident, a net $800,000 recruitment relating to the misuse of company funds, and a $300,000 loss on asset sales.

Speaker #5: Therefore, on an underlying basis, NPAT increased 38% to $12.8 million, and underlying EPS increased to 32.9 cents, compared with 22.2 cents in the previous period. The improvement reflects stronger margins, utilization, and cost discipline across the business.

Pieter Le Roux: The improvement reflects stronger margins, utilization, and cost discipline across the business. Turning now to the cash flow on slide 8, please. Strong operating cash flow and improved cash conversion increased our capital management flexibility to invest in the fleet, manage the balance sheet, and deliver shareholder returns. A strong opportunity pipeline and diversified revenue base provide a foundation for organic growth. Improvement in earnings translated into materially stronger cash generation during FY26. Net operating cash flow increased 42% to AUD 52.8 million, and free cash flow increased 83% to AUD 18.3 million. Stronger cash generation gives us greater flexibility in how we allocate capital across the business, maintaining and investing in the fleet, managing debt, and returning capital to shareholders. During FY26, we purchased AUD 7 million of shares through the on-market buyback, and an unframed dividend of AUD 0.02 per share, totaling approximately AUD 800,000 was paid during FY26.

Speaker #5: Turning now to the cash flow on slide 8, please. Strong operating cash flow and improved cash conversion increased our capital management flexibility to invest in the fleet.

Speaker #5: We managed the balance sheet and delivered shareholder returns. A strong opportunity pipeline and diversified revenue base provide a foundation for organic growth. The improvement in earnings translated into materially stronger cash generation during FY26.

Speaker #5: Net operating cash flow increased 42% to $52.8 million, and free cash flow increased 83% to $18.3 million. Stronger cash generation gives us greater flexibility in how we allocate capital across the business.

Speaker #5: Maintaining and investing in the fleet, managing debt, and returning capital to shareholders. During FY26, we purchased $7 million of shares through the on-market buyback and an unfranked dividend of $0.02 per share, totaling approximately $800,000, which was paid during FY26.

Pieter Le Roux: During FY26, we purchased AUD 7 million of shares through the on-market buyback, and an unframed dividend of AUD 0.02 per share, totaling approximately AUD 800,000 was paid during FY26.

Speaker #5: Furthermore, a $2.25 unfranked dividend has been declared, which will be paid in September. This represents an uplift in the dividend paid compared to the previous year.

Pieter Le Roux: Furthermore, a 2.25 unframed dividend has been declared, which will be paid in September, representing an uplift in the dividend paid compared to the previous year. We continue to target returning 40% to 60% of prior year's NPAT to shareholders through dividends and/or on-market buybacks while retaining flexibility to invest where appropriate returns are available. Turning now to our debt and funding position on slide 9. Our balance sheet also strengthened during FY2026. Cash increased to AUD 24.7 million, while the debt reduced from AUD 93 million down to AUD 85 million. This figure was AUD 77 million of undrawn facility capacity and remained compliant with all financial covenants. Net giving was approximately 40% within our target range of 35% to 45%. The combination of a stronger cash generation, available funding capacity, and our existing facilities gives Boom flexibility to fund the business while maintaining a disciplined approach to capital allocation.

Speaker #5: We continue to target returning 40% to 60% of the prior year's NPAT to shareholders through dividends and/or on-market buybacks, while retaining flexibility to invest where appropriate returns are available.

Speaker #5: Turning now to our debt and funding position on slide 9. Our balance sheet also strengthened during FY26. Cash increased to $24.7 million, while debt reduced from $93 million down to $85 million.

Speaker #5: Since the year end, there was $77 million of undrawn facility capacity, and we remained compliant with all financial covenants. Net gearing was approximately 40%, within our target range of 35% to 45%.

Pieter Le Roux: The combination of a stronger cash generation, available funding capacity, and our existing facilities gives Boom flexibility to fund the business while maintaining a disciplined approach to capital allocation.

Speaker #5: The combination of stronger cash generation, available funding capacity, and our existing facilities gives Boom flexibility to fund the business while maintaining a disciplined approach to capital allocation.

Speaker #5: Flexibility is important as we balance the ongoing requirements of the fleet with selective growth investment where returns meet our hurdle rates. Turning now to slide 16, I'll take you through the fleet and asset position before moving to our return on net assets.

Pieter Le Roux: Flexibility is important as we balance the ongoing requirements of the fleet with selective growth investment where returns meet our hurdle rates. Turning now to slide 16, I will take you through the fleet and asset position before moving to our return on net assets. Boom finished FY2026 with a fleet of approximately 295 lifting and ancillary assets and a value-weighted average fleet age of 5.9 years. This is within our target range of five to seven years. Therefore, we now have a fit-for-purpose portfolio where we are well below the midpoint of our fleet lifespan of 15 years, and hence do not have to make investment decisions under pressure. FY2026 net CapEx was AUD 16.7 million, comprising AUD 21 million of gross CapEx, less AUD 4.6 million of asset disposals. Labor efficiency and asset utilization both remained around 86%.

Speaker #5: Boom finished FY26 with a fleet of approximately 295 lifting and ancillary assets, and a value-weighted average fleet age of 5.9 years. This is within our target range of 5 to 7 years.

Speaker #5: Therefore, we now have a fit-for-purpose portfolio where we are well below the midpoint of our fleet lifespan of 15 years, and hence do not have to make investment decisions under pressure.

Speaker #5: FY26 net capex was $16.7 million, comprising $21 million of gross capex, less $4.6 million of asset disposals. Labor efficiency and asset utilization both remained around 86%.

Speaker #5: Our sustaining investment will continue to focus on safety, productivity, technology, and customer requirements, with growth capital deployed selectively where returns meet our investment hurdles.

Pieter Le Roux: Our sustaining investment will continue to focus on safety, productivity, technology, and customer requirements with growth capital deployed selectively where returns meet our investment hurdles. Slide 11 shows that operating and capital discipline translate into our focus on improving returns. Return on net assets is a key measure on how we effectively using the capital investment in the business. RONA improved from 6% in 2024 to 8% in 2025 and now is at 9%, reflecting the progress we have made through improved utilization, stronger margins, and disciplined capital management. Our aspiration is to deliver sustainable double-digit returns over the medium term. We see a number of levers to get there: improving our asset utilization, strengthening our margin discipline, redeploying assets to higher return markets, rationalizing underperforming assets, and also improving working capital efficiency. Importantly, growth investment will remain disciplined.

Speaker #5: Slide 11 shows that operating and capital discipline translate into our focus on improving returns. Return on net assets is a key measure of how we effectively use the capital invested in the business.

Speaker #5: Verona improved from 6% in ’24 to 8% in ’25, and now is at 9%, reflecting the progress we have made through improved utilization, longer margins, and disciplined capital management.

Speaker #5: Our aspiration is to deliver sustainable double-digit returns over the medium term. We see a number of levers to get there: improving our asset utilization, strengthening our margin discipline, redeploying assets to higher-return markets, rationalizing underperforming assets, and also improving working capital efficiency.

Speaker #5: Importantly, growth investment will remain disciplined. We will deploy capital where customer demand is clear, and where the expected returns meet our investment hurdles. Ultimately, Verona brings together margin, utilization, and capital discipline.

Pieter Le Roux: We will deploy capital where customer demand is clear and where the expected returns meet our investment hurdle. Ultimately, RONA brings together margin, utilization, and capital discipline. I will now hand back to Les who should take you through the broader strategy behind these disciplines.

Speaker #5: I'll now hand back to Lester to take you through the broader strategy behind these disciplines.

Speaker #1: Thank you, Peter. Let me now take you through how we're positioning the business going forward. Long-term contracted work anchors this business, giving us greater earnings visibility and supporting utilization of our fleet and people.

Les Fernandez: Thank you, Pieter. Let me now take you through how we are positioning the business going forward. Long-term contracted work anchors this business, giving us greater earnings visibility and supporting utilization of our fleet and people. Around that base, we are selective about the growth opportunities we pursue, looking at the commercial terms, risk, and expected returns. Volume is central to how we are thinking about growth. We want profitable growth supported by strong utilization and disciplined capital allocation. Underpinning it all are our people and safety. How we grow the business matters just as much as where we grow it. These are some good examples of the strategy in action across resources, infrastructure, renewables, and industrials. I also call out the technology behind the capability. We are continuing to invest in modern equipment and technology that improves safety, productivity, and the solutions we provide our customers.

Lester Fernandez: Thank you, Pieter. Let me now take you through how we are positioning the business going forward. Long-term contracted work anchors this business, giving us greater earnings visibility and supporting utilization of our fleet and people. Around that base, we are selective about the growth opportunities we pursue, looking at the commercial terms, risk, and expected returns. Volume is central to how we are thinking about growth. We want profitable growth supported by strong utilization and disciplined capital allocation. Underpinning it all are our people and safety. How we grow the business matters just as much as where we grow it. These are some good examples of the strategy in action across resources, infrastructure, renewables, and industrials. I also call out the technology behind the capability. We are continuing to invest in modern equipment and technology that improves safety, productivity, and the solutions we provide our customers.

Speaker #1: Around that base, we're selective about the growth opportunities we pursue, looking at the commercial terms, risk, and expected returns. Returns over volume are central to how we're thinking about growth.

Speaker #1: We want profitable growth, supported by strong utilization and disciplined capital allocation. Underpinning it all are our people and safety. How we grow the business matters just as much as where we grow.

Speaker #1: These are some good examples of the strategy in action across resources, infrastructure, renewables, and industrials. But I'd also call out the technology behind the capability.

Speaker #1: We're continuing to invest in modern equipment and technology that improves safety, productivity, and the solutions we provide our customers. That's increasingly important as our customers' requirements evolve, and it's another way we're extending our capability beyond providing cranes.

Les Fernandez: That is increasingly important as our customer requirements evolve and is another way we are extending our capability beyond providing cranes. Let me now turn to FY27. Safety is at the heart of how we operate at Boom. We never lose sight of the fact that behind every job are our people, their families, and the communities we work in. That brings a responsibility we take very seriously. We are always learning and looking at how we can improve, and we continue to invest in our safety systems and the way we plan and execute work. This improved to 2.0 per million hours worked. That is encouraging, but we are very conscious that safety cannot be defined by a single measure. Our focus is on preventing serious harm and making sure our people go home safely. Strategy is only as good as our ability to execute it, and it starts with our people.

Lester Fernandez: That is increasingly important as our customer requirements evolve and is another way we are extending our capability beyond providing cranes. Let me now turn to FY27. Safety is at the heart of how we operate at Boom. We never lose sight of the fact that behind every job are our people, their families, and the communities we work in. That brings a responsibility we take very seriously. We are always learning and looking at how we can improve, and we continue to invest in our safety systems and the way we plan and execute work. This improved to 2.0 per million hours worked. That is encouraging, but we are very conscious that safety cannot be defined by a single measure.

Speaker #1: Let me now turn to FY27. Safety is at the heart of how we operate at Boom. We never lose sight of the fact that behind every job are our people, their families, and the communities we work in.

Speaker #1: That brings a responsibility we take very seriously. We're always learning and looking at how we can improve, and we continue to invest in our safety systems and the way we plan and execute work.

Speaker #1: Looking for improvement to 2.0 per million hours worked. That's encouraging, but we're very conscious that safety can't be defined by a single measure. Our focus is on preventing serious harm and making sure our people go home safely.

Lester Fernandez: Our focus is on preventing serious harm and making sure our people go home safely. Strategy is only as good as our ability to execute it, and it starts with our people.

Speaker #1: Strategy is only as good as our ability to execute it, and it starts with our people. We have some of the best people in our industry, and we're continuing to invest in their development and leadership capability to make sure that we have the skills and capacity to support our customers as this business grows.

Les Fernandez: We have some of the best people in our industry, and we are continuing to invest in their development and leadership capability to make sure that we have the skills and capacity to support our customers as this business grows. Our social license to operate is equally important, particularly given the regions and communities in which our work takes place. Our Reflect RAP was endorsed during the year. The focus is now turning that commitment into meaningful Indigenous engagement, employment, and participation opportunities. We are also preparing for our FY27 sustainability reporting requirements. For us, these are not separate ESG initiatives. They are part of how we look after our people, build stronger relationships with our customers and communities, and maintain our license to operate over the longer term. Looking ahead to FY27, we enter the year with a solid foundation.

Lester Fernandez: We have some of the best people in our industry, and we are continuing to invest in their development and leadership capability to make sure that we have the skills and capacity to support our customers as this business grows. Our social license to operate is equally important, particularly given the regions and communities in which our work takes place. Our Reflect RAP was endorsed during the year. The focus is now turning that commitment into meaningful Indigenous engagement, employment, and participation opportunities. We are also preparing for our FY27 sustainability reporting requirements. For us, these are not separate ESG initiatives. They are part of how we look after our people, build stronger relationships with our customers and communities, and maintain our license to operate over the longer term. Looking ahead to FY27, we enter the year with a solid foundation.

Speaker #1: Our social license to operate is equally important, particularly given the regions and communities in which our works take place. We reflect RAP was introduced during the year, and the focus is now turning that commitment into meaningful Indigenous engagement, employment, and participation opportunities.

Speaker #1: We're also preparing for our FY27 sustainability reporting requirements. For us, these aren't separate ESG initiatives. They're part of how we look after our people, build stronger relationships with our customers and communities, and maintain our license to operate over the longer term.

Speaker #1: Looking ahead to FY27, we enter the year with a solid foundation. Our focus is on continuing to improve earnings, quality growth in our base of long-term contracted work, protecting margins, and maintaining strong asset and labor utilization.

Les Fernandez: Our focus is on continuing to improve earnings quality, growing our base of long-term contracted work, protecting margins, and maintaining strong asset and labor utilization. Resources remain the anchor, and we continue to see good opportunities across infrastructure, alongside selective participation in renewables and in industrials. We expect to invest more in our fleet in FY27, supporting customer demand and growth opportunities where the returns make sense. We are also budgeting for continued EPS growth. Alongside that, we are targeting up to AUD 7 million through the share buyback subject to board approval. We have the balance sheet and the cash generation to invest in the business while continuing to focus on the returns to shareholders. We are well-positioned entering FY27 and focused on continuing on the progress that we have made so far. To bring it all together, I believe there is a very good story here for our shareholders.

Lester Fernandez: Our focus is on continuing to improve earnings quality, growing our base of long-term contracted work, protecting margins, and maintaining strong asset and labor utilization. Resources remain the anchor, and we continue to see good opportunities across infrastructure, alongside selective participation in renewables and in industrials. We expect to invest more in our fleet in FY27, supporting customer demand and growth opportunities where the returns make sense. We are also budgeting for continued EPS growth. Alongside that, we are targeting up to AUD 7 million through the share buyback subject to board approval. We have the balance sheet and the cash generation to invest in the business while continuing to focus on the returns to shareholders.

Speaker #1: Resources remain the anchor, and we continue to see good opportunities across infrastructure, alongside selective participation in renewables and in industrials. We expect to invest more in our fleet in FY27, supporting customer demand and growth opportunities where the returns make sense.

Speaker #1: We're also budgeting for continued EPS growth. Alongside that, we're targeting up to $7 million through the share buyback, subject to board approval. We have the balance sheet and the cash generation to invest in the business, while continuing to focus on returns to shareholders.

Speaker #1: We're well positioned entering FY27 and focused on continuing the progress that we've made so far. We'll bring it all together and believe there's a very good story here for our shareholders.

Lester Fernandez: We are well-positioned entering FY27 and focused on continuing on the progress that we have made so far. To bring it all together, I believe there is a very good story here for our shareholders.

Speaker #1: We're improving earnings, quality, and cash generation while managing shareholder capital more effectively. We have national scale, a modern, specialized fleet, strong customer relationships, and broader capability across engineering, workforce solutions, and technology.

Les Fernandez: Improving earnings quality and cash generation while maintaining shareholder capital, while managing shareholder capital more effectively. At national scale, modern specialized fleet, strong customer relationships, and broader capability across engineering workforce solutions and technology. We are positioned across markets where we continue to see long-term demand and opportunities for profitable growth. Ultimately, our focus is on translating that into continued EPS growth, sustainable returns on the capital we deploy, and long-term value for our shareholders. That brings me to the end. Thank you for your time. Pieter and I are now happy to take any questions.

Lester Fernandez: Improving earnings quality and cash generation while maintaining shareholder capital, while managing shareholder capital more effectively. At national scale, modern specialized fleet, strong customer relationships, and broader capability across engineering workforce solutions and technology. We are positioned across markets where we continue to see long-term demand and opportunities for profitable growth. Ultimately, our focus is on translating that into continued EPS growth, sustainable returns on the capital we deploy, and long-term value for our shareholders. That brings me to the end. Thank you for your time. Pieter and I are now happy to take any questions.

Speaker #1: We're positioned across markets where we continue to see long-term demand and opportunities for profitable growth. Ultimately, our focus is on translating that into continued EPS growth, sustainable returns on the capital we deploy, and long-term value for our shareholders.

Speaker #1: That brings me to the end, so thank you for your time. I'll keep an eye out and am happy to take any questions.

Speaker #2: Thank you. If you would like to ask a question via the phone, you'll need to press the star key, followed by the number 1 on your telephone keypad.

Operator: Thank you. If you would like to ask a question by the phone, you will need to press the star key followed by the number 1 on your telephone keypad. If you would like to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. If you would like to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. Your first question today from the phone comes from James Tracey from Blue Ocean Equities. Please go ahead.

Speaker #2: If you would like to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question.

Speaker #2: If you would like to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. Your first question today from the phone comes from James Tracy from Blue Ocean Equities.

Speaker #2: Please go ahead.

Speaker #1: Hello still, hi Peter. Thanks for taking my call. My question is about the outlook for FY27. I think the notable thing for the FY26 year was the very high growth in profit relative to sales.

James Tracey: Hello, Scott. Hi, Pieter. Thanks for taking my call. The question from me is about the outlook for FY27. I think the notable thing for the FY26 year was the very high growth in profit relative to sales. You have 2% revenue growth, NPAT 38%, and then you have EPS, which is 50% with the buybacks. Could you just give a bit more. You have been doing a lot of work beneath the surface around margins utilization, cost discipline, capital allocation, this whole concept of profitable utilization as opposed to just having the assets being used but not making a profit on them. Could you just give a bit more color on that and how much scope there is to go to continue doing that work in 2027 and maybe some of the things that give you confidence in your outlook for continued EPS growth into 2027?

Speaker #1: You've got 2% revenue growth, and perhaps 38%, and then you've got EPS, which is 50% with the buybacks. Could you just give a bit more—you've been doing a lot of work beneath the surface around margins, utilization, cost discipline, capital allocation, and this whole concept of profitable utilization, as opposed to just having the assets being used but not making a profit on them?

Speaker #1: Could you just give a bit more color on that and how much scope there is to continue doing that work in ’27, and maybe some of the things that give you confidence in your outlook for continued EPS growth into ’27?

Speaker #3: I'll start before handing over to Peter. James, thank you for your question, by the way. Look, the first point I want to make is that we've got a really solid foundation, and as we spoke earlier, and as I addressed earlier, we're budgeting for continued EPS growth.

Les Fernandez: I will start before handing over to Pieter. James, thank you for your question, by the way. Look, the first point I want to make is we have got a really solid foundation, and as we spoke earlier and as I addressed earlier, we are budgeting for continued EPS growth. I am confident in the direction that the business is going, and obviously, we are not putting a specific forecast around that today. We also just announced a few weeks back that, sorry, at the back end of June, that we have got a significant contract with BHP Olympic Dam, and it is future-facing and it is copper. On that note, I will stop and say solid foundation. There are opportunities that are coming. They have to meet the hurdle rates, but I am pretty confident that we are going to be in a decent position going forward.

Lester Fernandez: I will start before handing over to Pieter. James, thank you for your question, by the way. Look, the first point I want to make is we have got a really solid foundation, and as we spoke earlier and as I addressed earlier, we are budgeting for continued EPS growth. I am confident in the direction that the business is going, and obviously, we are not putting a specific forecast around that today. We also just announced a few weeks back that, sorry, at the back end of June, that we have got a significant contract with BHP Olympic Dam, and it is future-facing and it is copper. On that note, I will stop and say solid foundation. There are opportunities that are coming. They have to meet the hurdle rates, but I am pretty confident that we are going to be in a decent position going forward.

Speaker #3: I'm confident in the direction that the business is going. And obviously, we're not putting a specific forecast around that today. We also just announced a few weeks back—sorry, at the back end of June—that we've got a significant contract with Olympic Dam, and it's future-facing and it's copper.

Speaker #3: So, on that note, I'll stop and say: solid foundation, there are opportunities that are coming. I mean, they have to meet the hurdle rates, but I'm pretty confident that we're going to be in a decent position going forward.

Speaker #1: Yeah, and James, I'll just add to that — as you called out, there's really no single driver, but that double-digit ARONA that we want to get to is really going to be looking, again, at utilization and what we can improve.

Pieter Le Roux: Yeah. James, I will just add to that, as you have called out, there is really no single driver, but that double-digit RONA that we want to get to is really going to be looking again at utilization, what we can improve. I think in a previous conversation with you guys, we have talked about what a small percentage increase in utilization makes to the underlying performance of the business. So we will continue to work on utilization. We have had a long discussion yesterday on the board around our metrics around that, our definitions around that, and what we want to do in the year coming to get some more focus on that.

Speaker #1: And I think in a previous conversation with you guys, we talked about what a small percentage increase in utilization makes to the underlying performance of the business.

Speaker #1: So, we'll continue to work on utilization. We had a long discussion yesterday at the board around our metrics on that, our definitions around that, and what we want to do in the year coming to sort of get some more focus on that.

Speaker #1: But I think the important part, again, is the free cash flow that came in, despite the revenue uplift being only 2%. Despite that, the underlying EBIT has just continuously benefited us and our shareholders. I hate using the phrase 'chasing revenue,' but we're definitely not doing that anymore.

Pieter Le Roux: But I think the important part, again, the free cash flow that came in despite the revenue uplift only 2%, but despite that, the underlying EBIT has just continuously benefited us and our shareholders because we I hate using the word chasing revenue, but we are definitely not doing that anymore. We are looking at profitable business, and therefore, sometimes we are selective of the work that we take. But we are taking work that we know we can make money and we can do the work safely. So asset deployment, underperforming assets, yeah, we have done a lot of that. You saw we had some losses on the sale of assets this year, and where we have had profits on the sale last year. But it is to that point where we actually get rid of the stuff that is not bringing the levels of all the hurdle rates that we have set ourselves.

Speaker #1: We are looking at profitable business, and therefore sometimes we are selective with the work that we take. But we're taking work that we know we can make money on, and we can do the work safely.

Speaker #1: So, asset deployment, underperforming assets—yeah, we've done a lot of that. You saw we had some losses on the sale of assets this year.

Speaker #1: And where we've had profits on the sale last year, but it's to that point where we actually get rid of the stuff that's not bringing the levels of all the hurdle rates that we've set ourselves.

Pieter Le Roux: But it is to that point where we actually get rid of the stuff that is not bringing the levels of all the hurdle rates that we have set ourselves.

Speaker #3: You can take some comfort, James, in that the assets will go where the margins are the best, has wheels and will travel.

Les Fernandez: You can take some comfort, James, in that the assets will go where the margins are the best, as wheels and will travel.

Lester Fernandez: You can take some comfort, James, in that the assets will go where the margins are the best, as wheels and will travel.

Speaker #1: And just a quick follow-up on that point. When I visited you up in Brisbane, there was a whole lot of equipment that was going out to do work on electrical transmission lines.

James Tracey: Just a quick follow-up on that point. When I visited you up in Brisbane, there was a whole lot of equipment that was going out to do work on electrical transmission lines. I also noticed that, I guess, transmission is a more prominent part of your presentation this year versus in the past. Could you perhaps talk to maybe that segment of the market and then the pipeline you have got and maybe any work that is going on generally in the sector that what is your advantage in being able to address some of that demand?

Speaker #1: And I also noticed that, I guess, transmission is a more prominent part of your presentation this year versus in the past. Could you perhaps talk to that segment of the market and then the pipeline you've got, and maybe any work that's going on generally in the sector? What's your advantage in being able to address some of that demand?

Speaker #3: No, you're not asking me to give away all my trade secrets there, James. But no, you're right. Transmission.

Les Fernandez: Glad you're not asking me to give away all my trade secrets there, James. But no, you're right. Transmission-

Lester Fernandez: Glad you're not asking me to give away all my trade secrets there, James. But no, you're right. Transmission-

James Tracey: Only the ones that you can.

Speaker #1: Only the ones that you can.

Speaker #3: Yeah, look, it is. It's an increasingly important part of our business, and I've sort of moved it into that infrastructure space, not really worried about how the energy gets generated.

Les Fernandez: Yeah. Look, it is. It's an increasingly important part of our business, and I've sort of moved it into that infrastructure space. We're not really worried about how the energy gets generated. So really, transmission line is infrastructure. The country has to get rewired, and we have competitive advantage in that space, primarily because we've assembled, or sorry, erected a multitude of 1,500, 1,600 towers already. And we're seeing that our relationships with our clients, it's spanning across both sides of the divide. So to that end, and to answer your question, it was a pet project of Pieter when he came on board to make sure that those assets went out. I'm glad to report that he's been successful in that endeavor, and he sent them out. So yeah. Well, it's certainly an area of growth for us, James.

Lester Fernandez: Yeah. Look, it is. It's an increasingly important part of our business, and I've sort of moved it into that infrastructure space. We're not really worried about how the energy gets generated. So really, transmission line is infrastructure. The country has to get rewired, and we have competitive advantage in that space, primarily because we've assembled, or sorry, erected a multitude of 1,500, 1,600 towers already. And we're seeing that our relationships with our clients, it's spanning across both sides of the divide. So to that end, and to answer your question, it was a pet project of Pieter when he came on board to make sure that those assets went out. I'm glad to report that he's been successful in that endeavor, and he sent them out. So yeah. Well, it's certainly an area of growth for us, James.

Speaker #3: So really, transmission line is infrastructure. The country has to get rewired, and we have a competitive advantage in that space, primarily because we've assembled or sort of erected a multitude—1,500 to 1,600 towers already.

Speaker #3: And we're seeing that our relationships with our clients, it's spanning across both sides of the divide. So to that end, and to answer your question, it was a pet project of Peter when he came on board to make sure that those assets went out.

Speaker #3: I'm glad to report that he's been successful in that endeavor, and he sent them out. So, yeah, it's certainly an area of growth for us, James.

Speaker #1: Thank you, Lester. Thank you, Peter.

James Tracey: Thank you, Lester. Thank you, Pieter.

Speaker #3: Thank you, James.

Les Fernandez: Thank you, James.

Lester Fernandez: Thank you, James.

Speaker #2: Thank you once again. If you’d like to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further phone questions at this time. I will now hand over for questions from the webcast to be addressed.

Speaker #2: There are no further phone questions at this time. I'll now hand over for questions from the webcast to be addressed.

Speaker #4: Well, thanks, Darcy. So Lester and Peter, I have a number of questions, following similar kinds of themes to the ones you've just been addressing. But let me just work through each of these in turn.

[Company Representative] (Automic Group): Thanks, Darcy. Lester and Pieter, a number of questions following similar kind of themes to the ones you have just been addressing. Let me just work through each of these in turn. There is a number of them. First one, what does the pipeline and opportunities for material contracts look like, and how should we think about revenue growth after significant EPS growth from the focus on returns?

[Unknown Speaker]: Thanks, Darcy. Lester and Pieter, a number of questions following similar kind of themes to the ones you have just been addressing. Let me just work through each of these in turn. There is a number of them. First one, what does the pipeline and opportunities for material contracts look like, and how should we think about revenue growth after significant EPS growth from the focus on returns?

Speaker #4: There are a number of them. First one: what does the pipeline and opportunities for material contracts look like? And how should we think about revenue growth after significant EPS growth from the returns from the focus on returns?

Speaker #3: Edwin, thank you for that question. Look, there will always be movement and contracts, but what we have in front of us is a good opportunity set.

Les Fernandez: Adrian, thank you for that question. There will always be movement in contracts, but what we have got in front of us is a good opportunity set. We recently announced BHP Olympic Dam and our extension there with a seven-year contract. It is less about a large headline number, but making sure that the opportunities that are in front of us, we convert them, and those that we convert are profitable and meet our return requirements. Again, I am confident and quite positive going into this new year.

Lester Fernandez: Adrian, thank you for that question. There will always be movement in contracts, but what we have got in front of us is a good opportunity set. We recently announced BHP Olympic Dam and our extension there with a seven-year contract. It is less about a large headline number, but making sure that the opportunities that are in front of us, we convert them, and those that we convert are profitable and meet our return requirements. Again, I am confident and quite positive going into this new year.

Speaker #3: I think recently announced BHP, Olympic Dam, and our extension there, with a seven-year contract. It's less about a large headline number, but making sure that the opportunities that are in front of us—we convert them—and those that we convert are profitable and meet our return requirements.

Speaker #3: But again, I'm confident and quite positive going into this new year.

Speaker #1: And I think I'll just add to that to sort of say that not every contract that we sign meets the disclosure requirements. So, a lot of our smaller contracts, and the ones that we make, are not publicly disclosed.

Pieter Le Roux: I think I'll just add to that to say that not every contract that we sign meets the disclosure requirements. A lot of our smaller contracts and the wins that we make is not publicly disclosed. We're confident with the pipeline.

Speaker #1: We're confident with the pipeline.

Speaker #3: Thanks, Peter.

Les Fernandez: Thanks, Pieter.

Lester Fernandez: Thanks, Pieter.

Speaker #4: Okay, thanks, James. The next one—and you spoke a little bit about this earlier, but just a slightly different nuance here—so, what is NPAT and CAPEX guidance for FY27, noting that you have previously provided qualitative guidance?

[Company Representative] (Automic Group): Okay. Thanks, James. The next one, and you spoke a little bit about this earlier, but just slightly different nuance here. What is NPAT and CapEx guidance for FY27, noting that you have previously provided qualitative guidance?

[Unknown Speaker]: Okay. Thanks, James. The next one, and you spoke a little bit about this earlier, but just slightly different nuance here. What is NPAT and CapEx guidance for FY27, noting that you have previously provided qualitative guidance?

Speaker #3: Look, I'll start by saying we're in a good position, and we don't have to make lead decisions under pressure. Peter touched on that earlier.

Les Fernandez: I'll start by saying we're in a good position and we don't have to make fleet decisions under pressure. Pieter touched on that earlier. We can invest where customer demand and returns justify it. It's a 15-year life cycle, our value-weighted average age is 5.9. Again, it's one of those things. The metrics are good. The CapEx, we spent around AUD 17 million last year. Pick a number between 15 and 19, put it into the model, and that should potentially work, Adrian.

Lester Fernandez: I'll start by saying we're in a good position and we don't have to make fleet decisions under pressure. Pieter touched on that earlier. We can invest where customer demand and returns justify it. It's a 15-year life cycle, our value-weighted average age is 5.9. Again, it's one of those things. The metrics are good. The CapEx, we spent around AUD 17 million last year. Pick a number between 15 and 19, put it into the model, and that should potentially work, Adrian.

Speaker #3: We can invest where customer demand and returns justify it. That's a 15-year life cycle. Our value-weighted average age is 5.9. Again, it's one of those things.

Speaker #3: The metrics are good. For CAPEX, we spent around $17 million last year. Pick a number between $15 million and $19 million, put it into the model, and that should potentially work, Edwin.

Speaker #4: Well, thanks, Lester. Next question: How would the $200 million of secured contract work for FY27 compare to FY26 at the same time last year?

[Company Representative] (Automic Group): Thanks, Lester. Next question. How would the AUD 200 million of secured contract work for FY27 compare to FY26 at the same time last year?

[Unknown Speaker]: Thanks, Lester. Next question. How would the AUD 200 million of secured contract work for FY27 compare to FY26 at the same time last year?

Les Fernandez: Interesting question. Look, the most significant one was the one we announced on the back end of June. Again, I am more interested in the fact that we are pivoting to longer term maintenance work, and that is reoccurring revenue. That is good. We are chasing opportunities, the growth opportunities that are profitable, that we layer it on top of that. The macroeconomics are changing, but one of the good things is the fact that as a business, within the resources space, we are diversified. We have got exposure to coal, we have got exposure to gold, we have got exposure to iron ore, and we have got exposure to copper. So that gives me comfort, and that is not to mention infrastructure, industrials, and renewables. So across the board, I am pretty sure we are doing better, but the pipeline is looking good.

Lester Fernandez: Interesting question. Look, the most significant one was the one we announced on the back end of June. Again, I am more interested in the fact that we are pivoting to longer term maintenance work, and that is reoccurring revenue. That is good. We are chasing opportunities, the growth opportunities that are profitable, that we layer it on top of that. The macroeconomics are changing, but one of the good things is the fact that as a business, within the resources space, we are diversified. We have got exposure to coal, we have got exposure to gold, we have got exposure to iron ore, and we have got exposure to copper. So that gives me comfort, and that is not to mention infrastructure, industrials, and renewables. So across the board, I am pretty sure we are doing better, but the pipeline is looking good.

Speaker #3: Interesting question. Look, the more significant one was the one we announced at the back end of June. Again, I'm more interested in the fact that now we're pivoting to longer-term maintenance work, and that's recurring revenue.

Speaker #3: That's good. We're chasing opportunities that the growth opportunities that are profitable that we layered on top of that. The macroeconomics are changing, but one of the good things is the fact that we are as a business, we've got within the resources space, we're diversified.

Speaker #3: We've got exposure to coal, we've got exposure to gold, we've got exposure to iron, and we've got exposure to copper. So that gives me comfort—and that's not to mention infrastructure, industrials, and renewables.

Speaker #3: So, across the board, I think I'm pretty sure we're doing better, and the pipeline is looking good.

Speaker #4: Well, thanks, Lester. Next one—this refers to the slide we have in the pack with respect to return on net assets. So, referring to that slide, what approximate timeframe do you anticipate to reach the aspirational RONA target of 15%?

[Company Representative] (Automic Group): Thanks, Lester. Next one, and this refers to the slide we have in the pack with respect to return on net assets. So referring to that slide, what approximate timeframe do you anticipate to reach the aspiration RONA target of 15%?

[Unknown Speaker]: Thanks, Lester. Next one, and this refers to the slide we have in the pack with respect to return on net assets. So referring to that slide, what approximate timeframe do you anticipate to reach the aspiration RONA target of 15%?

Speaker #3: Repeat the question. Look, the 15% is an aspirational target. As you can see, the journey over the three years has been a marginal improvement. So if you just want to go on that trajectory, it would definitely not be in the near term, but more in the sort of medium term.

Les Fernandez: Peter, question.

Lester Fernandez: Peter, question.

Pieter Le Roux: Look, the 15% is an aspirational target. As you can see, the journey over the three years has been marginal improvements. If you just want to go on that trajectory, it would definitely not be in the near term, but more in the medium term that we were trying to get there. I will only keep my job as long as we get to that 15% fairly quickly. Again, like I have said, at the double digit RONA in this space, it will be capital intensive, is aspirational, and I will stop at that.

Speaker #3: That we were trying to get there. But I'll only keep my job as long as we get to that 15% fairly quickly. But again, like I said, a double-digit RONA in this space, where we are capital intensive, is aspirational.

Speaker #3: And I'll stop at that. I'll just say there's no single lever; it's really about getting more from the assets that we currently have and being careful where we put our next dollar.

[Company Representative] (Automic Group): Thanks, Pieter.

[Unknown Speaker]: Thanks, Pieter.

Les Fernandez: I will just say, there is no single lever. It is really about getting more from the assets that we currently have and being careful where we put our next dollar.

Lester Fernandez: I will just say, there is no single lever. It is really about getting more from the assets that we currently have and being careful where we put our next dollar.

Speaker #4: Gotcha. Thanks very much, Lester. And thank you, Peter. I hope you do keep your job. So, just the next question: Is the improvement in free cash flow sustainable?

[Company Representative] (Automic Group): Okay. Thanks very much, Les. Thank you, Pieter. I hope you do keep your job. Just the next question. Is the improvement in free cash flow sustainable?

[Unknown Speaker]: Okay. Thanks very much, Les. Thank you, Pieter. I hope you do keep your job. Just the next question. Is the improvement in free cash flow sustainable?

Speaker #3: Yes, and I think I'll preface that with the fact that the quality of the revenue that we're chasing, and the deliberate decisions that we are making with regards to where we contract, how we do it, and how we pick the next piece of work.

Pieter Le Roux: Yes. I think I will preface this on the fact that the quality of the revenue that we are chasing and the deliberate decisions that we are making with regards to where do we contract, how do we do it, and how do we pick the next piece of work. I think I can say that we are very optimistic, and if we look at our outlook and what we say we are going to do, I think it is something to expect that our free cash flow generation will continue to grow. Again, this is our results presentation. The outlook update will probably come in the next couple of months, but positive.

Speaker #3: So, yeah, I think I can say that we are very optimistic, and if we look at our outlook and what we say we're going to do, I think it's reasonable to expect that our free cash flow generation will continue to grow.

Speaker #3: Again, this is our results presentation. The outlook update will probably come in the next couple of months, but yeah, positive.

Speaker #2: Can we go with 'quietly confident'? That sounds better. Quietly confident, Edwin.

Les Fernandez: Can we go with quietly confident? That sounds better.

Lester Fernandez: Can we go with quietly confident? That sounds better.

Pieter Le Roux: Quietly confident.

Les Fernandez: Quietly confident, Adrian.

Lester Fernandez: Quietly confident, Adrian.

[Company Representative] (Automic Group): Thank you, Lester. This next one's on capital management. Either of you would take this. What is the company's order of priorities for capital management and allocation?

[Unknown Speaker]: Thank you, Lester. This next one's on capital management. Either of you would take this. What is the company's order of priorities for capital management and allocation?

Speaker #4: Thank you, Lester. So this one—next one's on capital management. So, either of you could take this. What is the company's order of priorities for capital management and allocation?

Speaker #3: Look, it’s a bucket, right? Because we have to manage the people that trust us with their money. And therefore, we have a program, and the shareholder buyback has been a favorite mechanism as we’ve generated some more cash to sort of return money to the market.

Pieter Le Roux: It's a bucket, right? Because we have to manage the people that trust us with their money. Therefore, we have a program, and the shareholder buyback has been a favorite mechanism as we generated some more cash to return money to the market. The dividends, as you can see, we've announced a small uplift on the dividends as well. That said, it's always a discussion with regards to different investors, and when we go on the roadshow with you, we'll definitely hear again from you specifically with regards to your preference. Because a lot of people are happy with unfranked dividends, but most of the investors traditionally have preferred to get a franked dividend.

Speaker #3: But then, as you can see, we've announced a small uplift on the dividends as well. But that said, it's always a discussion with regards to different investors and when we go on the roadshow with you, we'll definitely hear again from you specifically with regards to your preference.

Speaker #3: Because a lot of people are happy with unfranked dividends, but most investors traditionally have preferred to get a franked dividend. So, it's a balance.

Pieter Le Roux: It's a balance, and as Lester was talking, if we want to really pivot and play in very different market segments or get into the wind space, that's really capital intensive, and we will make those investment decisions around how do we manage the capital with regards to the contracts that we'll be signing in the future.

Speaker #3: And as Lester was talking, if we want to really pivot and play in very different market segments or get into the wind space, that's really, really capital intensive, and we will make those investment decisions around how we manage the capital with regards to the contracts that we'll be signing in the future.

Speaker #2: I'll just close on that by saying that the key is that every additional dollar we deploy needs to have a clear purpose and an appropriate return.

Les Fernandez: I'll just close on that by saying the key is that every additional AUD we deploy needs to have a clear purpose and an appropriate return. That's generally how we both think about capital deployment.

Lester Fernandez: I'll just close on that by saying the key is that every additional AUD we deploy needs to have a clear purpose and an appropriate return. That's generally how we both think about capital deployment.

Speaker #2: That's generally how we both think about capital deployment.

Speaker #3: Yeah. And I'm also saying that we're tightly controlled and squeezed by very active board members in the space with regards to capital deployment.

Pieter Le Roux: Yeah, I will also say that we are tightly controlled and squeezed by very active board members in this space with regards to capital deployment.

Speaker #4: Thanks, Peter. Next one—just going back to our margins. So, in the second half of the last financial year, is underlying EBITDA margin the base for FY27?

[Company Representative] (Automic Group): Thanks, Pieter. Next one, just going back to EBITDA margins. In the H2 of the last financial year, underlying the EBITDA margin, is that the base for FY27?

[Unknown Speaker]: Thanks, Pieter. Next one, just going back to EBITDA margins. In the H2 of the last financial year, underlying the EBITDA margin, is that the base for FY27?

Speaker #3: Yeah, we should really, aspirationally, say that is the base. I mean, yeah, again, it's going to EBITDA after the investment decisions that we're going to make will clearly impact that.

Pieter Le Roux: Yeah, we should really aspirationally say that is the base. Again, EBITDA, the investment decisions that we are going to make will clearly impact that. But yeah, I think it is right to say it is the base.

Speaker #3: But yeah, I think it's right to sort of say it's the base.

Speaker #4: Thanks, Peter. Turning to wind farms—according to this investor, there's a lot of talk in the media about wind farms no longer stacking up financially.

[Company Representative] (Automic Group): Thanks, Pieter. Turning to wind farms. According to this investor, there is a lot of talk in the media about wind farms no longer stacking up financially. How are you seeing the outlook for this sector?

[Unknown Speaker]: Thanks, Pieter. Turning to wind farms. According to this investor, there is a lot of talk in the media about wind farms no longer stacking up financially. How are you seeing the outlook for this sector?

Speaker #4: How are you seeing the outlook for this sector?

Les Fernandez: I'll start by saying what we said at the half-year presentation, where it was the lag that we've seen in wind farms was due to the approvals process. There still appears to be a long pipeline, and we think that's going to come off towards the back end of this year, early next year. I'll also address what we've done in the wind space. Again, our capability remains, our participation model has changed. We're just being more selective in how we pursue renewable wind farm work. But the scopes we take on, and we want to make sure that the risks are managed and the returns are appropriate for Boom.

Lester Fernandez: I'll start by saying what we said at the half-year presentation, where it was the lag that we've seen in wind farms was due to the approvals process. There still appears to be a long pipeline, and we think that's going to come off towards the back end of this year, early next year. I'll also address what we've done in the wind space. Again, our capability remains, our participation model has changed. We're just being more selective in how we pursue renewable wind farm work. But the scopes we take on, and we want to make sure that the risks are managed and the returns are appropriate for Boom.

Speaker #3: I'll start by reiterating what we said at the half-year presentation, where we noted that the lag we've seen in wind farms was due to the approvals process.

Speaker #3: There still appears to be a long pipeline, and we think that's going to come off towards the back end of this year, or early next year.

Speaker #3: I've also addressed what we've done in the wind space. Our capability remains, while our participation model has changed. We've just been more selective in how we pursue renewable wind farm work.

Speaker #3: But the scopes we take on, we want to make sure that the risks are managed and the returns are appropriate for Boom.

Speaker #4: Yeah. Thank you, Lester. Next question, a very specific question here about your plans for extending the fleet. Any plans to buy larger cranes than the 800 tons?

[Company Representative] (Automic Group): Thank you, Lester. Next question, a very specific question here about your plans for extending the fleet. Any plans to buy larger cranes than the 800 tons?

[Unknown Speaker]: Thank you, Lester. Next question, a very specific question here about your plans for extending the fleet. Any plans to buy larger cranes than the 800 tons?

Les Fernandez: That's a very specific question. In line with the answer I gave just before this, the key is to make sure every additional AUD has a clear purpose and a return. Now, if we've got forward visibility, if we've got utilization commitments, and it meets our hurdle rates, nothing's off the table.

Lester Fernandez: That's a very specific question. In line with the answer I gave just before this, the key is to make sure every additional AUD has a clear purpose and a return. Now, if we've got forward visibility, if we've got utilization commitments, and it meets our hurdle rates, nothing's off the table.

Speaker #3: That's a very specific question. In line with the answer I gave just before this, the key is to make sure every additional dollar has a clear purpose and a return.

Speaker #3: Now, if we've got forward visibility, if we've got utilization commitments, and it meets our hurdle rates, nothing is off the table.

Speaker #4: Yeah, that's very consistent, Lester. Thank you. There are just a couple more questions to go. So, when do you expect to be in a tax-paying position?

[Company Representative] (Automic Group): No, that's very consistent, Lester. Thank you. Just there's a couple more questions to go. When do you expect to be in a tax-paying position?

[Unknown Speaker]: No, that's very consistent, Lester. Thank you. Just there's a couple more questions to go. When do you expect to be in a tax-paying position?

Pieter Le Roux: Look, if you look on the trajectory, people would be thinking that we would soon be out. I really think that we expect our tax position to evolve as losses are utilized. But we are not giving a precise cash tax date, so to speak, because it depends on the future taxable income and also legislation with regards to utilization of those tax losses. I would say medium term is where I will stop.

Speaker #3: Look, yeah, I mean, if you look at the trajectory, people would be thinking that we'd soon be out. I really think that we expect to be in a tax position—our tax position will evolve as losses are utilized.

Speaker #3: But we aren't giving a precise cash tax date, so to speak, because it depends on the future taxable income and also legislation with regards to utilization of those tax losses.

Speaker #3: But I would say medium term is where I'll stop.

Speaker #4: Yeah, thank you, Peter. Perhaps a question for you—it kind of extends from the capital management discussion a bit earlier. You don't mention M&A as part of the strategy.

[Company Representative] (Automic Group): Thank you, Pieter. Perhaps a question for you. It kind of extends to capital management's discussion a bit earlier. You do not mention M&A as part of the strategy. Is this part of your plans going forward?

[Unknown Speaker]: Thank you, Pieter. Perhaps a question for you. It kind of extends to capital management's discussion a bit earlier. You do not mention M&A as part of the strategy. Is this part of your plans going forward?

Speaker #4: Is this part of your plans going forward?

Les Fernandez: Adrian, organic growth is our current priority. We have got plenty to do here, right? The pipeline, there is lots to do. If something inorganic comes up, it has to compete like everything else does. If the returns make sense and will be passed up to the board and meets the hurdle rates, it has to be assessed on its own merits. But as a rule of thumb, we do not generally comment on M&A, Adrian. I will stop there.

Lester Fernandez: Adrian, organic growth is our current priority. We have got plenty to do here, right? The pipeline, there is lots to do. If something inorganic comes up, it has to compete like everything else does. If the returns make sense and will be passed up to the board and meets the hurdle rates, it has to be assessed on its own merits. But as a rule of thumb, we do not generally comment on M&A, Adrian. I will stop there.

Speaker #3: Edwin, organic growth is our current priority. We've got plenty to do here, right? The pipeline—there's lots to do. Now, if something inorganic comes up, it has to compete like everything else does.

Speaker #3: The returns make sense, and then we pass it up to the board and it meets the hurdle rates. It has to be assessed on its own merits.

Speaker #3: But as a rule of thumb, we don't generally comment on M&A, Edwin, so I'll stop there.

Speaker #4: No, that's fine. And look, this final question, which once again would probably be a question best handled by the board, but let me just share it with you anyway.

[Company Representative] (Automic Group): No, that is fine. Look, this final question, which once again, would probably be a question best handled by the board, but let me just share it with you anyway. Somebody making an interesting observation. Clearly, you are trading very cheaply at a 20% plus free cash flow yield. Thank you for that observation. If the market continues not to value Boom properly, would you begin to engaging in a strategic review sale process?

[Unknown Speaker]: No, that is fine. Look, this final question, which once again, would probably be a question best handled by the board, but let me just share it with you anyway. Somebody making an interesting observation. Clearly, you are trading very cheaply at a 20% plus free cash flow yield. Thank you for that observation. If the market continues not to value Boom properly, would you begin to engaging in a strategic review sale process?

Speaker #4: So somebody making an interesting observation. Clearly, you're trading very cheaply at a 20% plus free cash flow yield. Thank you for that observation. If the market continues not to value Boom properly, would you begin to engage in a strategic review or sale process?

Les Fernandez: Right, that is a question for the board.

Lester Fernandez: Right, that is a question for the board.

Speaker #3: You're right, there is a question for the Board.

Speaker #4: No, no. Thank you, Lester. Look, I think we've exhausted the crowd. So, thank you very much. And let me just pass back to you, Lester, for any final closing remarks.

[Company Representative] (Automic Group): No, thank you, Lester. Look, I think we have exhausted the crowd. So thank you very much. Let me just pass back to you, Lester, for any final closing remarks.

[Unknown Speaker]: No, thank you, Lester. Look, I think we have exhausted the crowd. So thank you very much. Let me just pass back to you, Lester, for any final closing remarks.

Speaker #3: Thank you, Edwin. Thank you all for listening in, and thank you for the questions. Hopefully, we'll see you on the roadshow in a couple of weeks.

Les Fernandez: Thank you, Adrian. Thank you for all listening in, and thank you for the questions. Hopefully, we will see you on the roadshow in a couple of weeks.

Lester Fernandez: Thank you, Adrian. Thank you for all listening in, and thank you for the questions. Hopefully, we will see you on the roadshow in a couple of weeks.

Speaker #2: Yeah, no, thank you very much. And thank you, really, for the questions too, and making those calculations on the back of the results just freshly released.

Pieter Le Roux: Yeah. No, thank you very much. Thank you really for the questions, too, and making those calculations on the back of the results just freshly released. So it is good to see that there is interest. Yes, we look forward to-

Speaker #2: So, it's good to see that there's interest, and yes, we look forward to it.

Les Fernandez: Seeing you on the roadshow.

Lester Fernandez: Seeing you on the roadshow.

Speaker #3: See you on the roadshow.

Pieter Le Roux: Yeah, seeing you at the roadshow and a good year ahead. Thank you.

Les Fernandez: Thank you.

Lester Fernandez: Thank you.

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Q4 2026 Boom Logistics Ltd Earnings Call

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