Half Year 2026 Ventia Services Group Ltd Earnings Call

August 24, 2026

Speaker #2: Thank you, Rocco. Good morning, and welcome to Ventia's half-year results presentation. I'm Dean Banks, proud and privileged to be the Group's CEO, and I'm joined today by our CFO, Mark Fleming.

Dean Banks: Thank you, Rocco. Good morning and welcome to Ventia's H1 results presentation. I am Dean Banks, proud and privileged to be the Group CEO at Ventia. I am joined today by our CFO, Mark Fleming. Thank you for joining us as we reflect on our H1 2026 performance. After our presentation, Mark Fleming and I will be pleased to take your questions. Before we begin, I would like to respectfully acknowledge the traditional custodians of the land from where we are broadcasting today, the Cammeraygal people of the Eora Nation. We would like to acknowledge their ancient and ongoing connection to lands, waters, and communities, and pay respect to elders, past and present. We also recognize and celebrate the heritage and culture of New Zealand, where our teams engage with local iwi and communities across the country. I would like to start, as always, with safety, which is our license to operate.

Dean Banks: Thank you, Rocco. Good morning and welcome to Ventia's half year results presentation. I am Dean Banks, proud and privileged to be the Group CEO at Ventia. I am joined today by our CFO, Mark Fleming. Thank you for joining us as we reflect on our half year 2026 performance. After our presentation, Mark Fleming and I will be pleased to take your questions. Before we begin, I would like to respectfully acknowledge the traditional custodians of the land from where we are broadcasting today, the Cammeraigal people of the Eora Nation. We would like to acknowledge their ancient and ongoing connection to lands, waters, and communities, and pay respect to elders, past and present. We also recognize and celebrate the heritage and culture of New Zealand, where our teams engage with local iwi and communities across the country. I would like to start, as always, with safety, which is our license to operate.

Speaker #2: Thank you for joining us as we reflect on our half-year 2026 performance. After our presentation, Mark Fleming and I will be pleased to take your questions.

Speaker #2: Before we begin, I'd like to respectfully acknowledge the traditional custodians of the land from where we are broadcasting today: the Camaragal people of the Eora Nation.

Speaker #2: I'd like to acknowledge their ancient and ongoing connection to lands, waters, and communities, and pay respect to elders past and present. We also recognize and celebrate the heritage and culture of New Zealand, where our teams engage with the local iwi and communities across the country.

Speaker #2: I'd like to start, as always, with safety, which is our licence to operate. We continue to strive to strengthen our safety process and critical risk protocols, making every reasonable endeavour to ensure our workforce go home safely.

Dean Banks: We continue to strive to strengthen our safety processes and critical risk protocols, making every reasonable endeavor to ensure our workforce go home safely. Since listing, we have delivered material improvement across our core safety indicators. Our total recordable injury frequency rate improved by 17%, serious injury frequency rate improved by 38%, and the associated serious claims rate has improved by 48%. These outcomes reflect strong leadership focus and continued investment in leadership and frontline training over the past five years. This slide illustrates the strong performance Ventia has delivered since H1 2022. Business momentum has been largely translated into progressive financial outcomes. We have delivered on expectations, delivering a 50% growth in NPAT, an improvement of 1.3% in our EBITDA margin, whilst continuing to convert profit into cash, with average cash conversion above 90%.

Dean Banks: We continue to strive to strengthen our safety processes and critical risk protocols, making every reasonable endeavor to ensure our workforce go home safely. Since listing, we have delivered material improvement across our core safety indicators. Our total recordable injury frequency rate improved by 17%, serious injury frequency rate improved by 38%, and the associated serious claims rate has improved by 48%. These outcomes reflect strong leadership focus and continued investment in leadership and frontline training over the past five years. This slide illustrates the strong performance Ventia has delivered since half year 2022. Business momentum has been largely translated into progressive financial outcomes. We have delivered on expectations, delivering a 50% growth in NPAT, an improvement of 1.3% in our EBITDA margin, whilst continuing to convert profit into cash, with average cash conversion above 90%.

Speaker #2: Since listening, we have delivered material improvement across our core safety indicators. Our total recordable injury frequency rate improved by 17%, serious injury frequency rate improved by 38%, and the associated serious claims rate has improved by 48%.

Speaker #2: These outcomes reflect strong leadership focus and continued investment in leadership and frontline training over the past five years. This slide illustrates the strong performance Ventia has delivered since half year 2022.

Speaker #2: Business momentum has been largely translated into progressive financial outcomes. We've delivered on expectations, delivering 50% growth in Empire A and an improvement of 1.3% in our EBITDA margin.

Speaker #2: Whilst continuing to convert profit into cash, with average cash conversion above 90%. From a customer perspective, we've maintained an average renewal rate of 92%, demonstrating the importance of our long-term relationships.

Dean Banks: From a customer perspective, we have maintained an average renewal rate of 92%, demonstrating the importance of our long-term relationships. Over the same period, work in hand has increased by 22%. In terms of shareholders, earnings per share have increased by 76%, and we have provided total shareholder returns of 350% over the five-year period since listing. I will now take you through the headline financial outcomes for the half year. Mark will provide further detail around our financial performance shortly. The figures I reference today are underlying and exclude the one-off positive gain in 2025 from the Toowoomba novation. Group revenue declined by 4.7% to AUD 2.9 billion as a consequence of the reduction in Defence revenue. Outside of Defence and Social Infrastructure, our other three sectors all delivered year-on-year revenue growth. During the half, the Defence Base Services contract and the Defence Clothing Services contract were successfully mobilized.

Speaker #2: Over the same period, our working headcount has increased by 22%. In terms of shareholders, earnings per share have increased by 76%, and we've provided total shareholder returns of 350% over the five-year period since listing.

Speaker #2: I will now take you through the headline financial outcomes for the half-year. Mark will provide further detail around our financial performance shortly. The figures I reference today are underlying and exclude the one-off positive gain in 2025 from the Toowoomba novation.

Speaker #2: Group revenue declined by 4.7% to $2.9 billion as a consequence of the reduction in defence revenue. Outside of defence and social infrastructure, our other three sectors all delivered year-on-year revenue growth.

Speaker #2: During the half, the Defence Base Services contract and the Defence Clothing Services contract were successfully mobilised. Together, these contracts represent $3.6 billion of work and provide a strong platform for future revenue.

Dean Banks: Together, these contracts represent AUD 3.6 billion of work and provide a strong platform for future revenue. The business responded proactively to this anticipated Defence Base Services contract reset through disciplined cost management and operational efficiency initiatives, resulting in improvement across all other key financial metrics. EBITDA increased 8.2% to AUD 273 million, and EBITDA margin expanded by 1.1 percentage points to 9.4%, another record high. This margin performance reflects the deliberate shift towards higher value end markets, robust commercial risk and governance, and continued operational improvement across the portfolio. NPAT increased 7.4% to AUD 128 million, and cash conversion improved to 93.8%, demonstrating the quality of earnings and the strength of our cash management process. This performance is further supported by work in hand increasing to AUD 21.1 billion, which underpins confidence in our future outlook. 2025 was an exceptional year for work winning, with four contracts awarded at or above AUD 1 billion.

Speaker #2: The business responded proactively to this anticipated defence-based contract reset through disciplined cost management and operational efficiency initiatives, resulting in improvement across all other key financial metrics.

Speaker #2: EBITDA increased 8.2% to $273 million, and EBITDA margin expanded by 1.1 percentage points to 9.4%, another record high. This margin performance reflects the deliberate shift towards higher value in markets, robust commercial risk and governance, and continued operational improvement across the portfolio.

Speaker #2: Empire A increased 7.4% to $128 million, and cash conversion improved to 93.8%, demonstrating the quality of earnings and the strength of our cash management process.

Speaker #2: This performance is further supported by work-in-hand increasing to $21.1 billion, which underpins confidence in our future outlook. 2025 was an exceptional year for work winning.

Dean Banks: This performance is further supported by work in hand increasing to AUD 21.1 billion, which underpins confidence in our future outlook. 2025 was an exceptional year for work winning, with four contracts awarded at or above AUD 1 billion.

Speaker #2: With four contracts awarded at or above $1 billion, against that very strong comparator, half-year 2026 has delivered another robust period of work winning.

Dean Banks: Against that very strong comparator, H1 2026 has delivered another robust period of work winning, with seven material contracts awarded across the half, compared to a historic average of four per half. These awards have helped increase our average contract tenure to 6.2 years, bringing further stability to our business and reflect our exceptional 98% customer renewal rate across the period. In defense and social infrastructure, we secured a five-year extension at the Australian Marine Complex common user facility in Western Australia. We also secured a one-year extension on our defense maintenance contract, with options to extend for a further four years. These important extensions further cement our role as a long-term partner to defense and put us in a good position to support their growth plans. In infrastructure services, we secured a nine-year renewal with Yarra Valley Water in Victoria.

Speaker #2: With seven material contracts awarded across the half, compared to a historic average of four per half, these awards have helped increase our average contract tenure to 6.2 years. This brings further stability to our business and reflects our exceptional 98% customer renewal rate across the period.

Speaker #2: In Defence and Social Infrastructure, we secured a five-year extension at the Australian Marine Complex, Common User Facility in Western Australia. We also secured a one-year extension on our Defence maintenance contract, with options to extend for a further four years.

Speaker #2: These important extensions further cement our role as a long-term partner to Defence and put us in a good position to support their growth plans.

Speaker #2: In Infrastructure Services, we secured a nine-year renewal with Yarra Valley Water in Victoria. We also signed a new panel agreement with Powerlink Queensland, with an estimated value of $150 million.

Dean Banks: We also signed a new panel agreement with Powerlink Queensland with an estimated value of AUD 150 million, and a two-year extension with Transpower in New Zealand, further demonstrating our extensive capabilities in the energy sector. In telecommunications, we were awarded two contracts with Optus with a combined value of AUD 110 million. These agreements span integrated programs across the Optus fixed and wireless networks. In transport, we secured new road maintenance contracts with VicRoads in the Grampians and Eastern Metropolitan regions, worth a combined value of AUD 340 million. In August, we were also awarded two intelligent transport systems maintenance contracts valued at AUD 160 million over five years, which further expands our presence across the Victoria transport network. Taken together, these awards demonstrate the resilience of our diversified portfolio across sectors and geographies. Our strategy has aligned Ventia over the past five years by giving our people a clear framework.

Speaker #2: And a two-year extension with Transpire in New Zealand, further demonstrating our extensive capabilities in the energy sector. In telecommunications, we were awarded two contracts with Optus, with a combined value of $110 million.

Speaker #2: These agreements span integrated programmes across the Optus fixed and wireless networks. In transport, we secured new road maintenance contracts with VicRoads in the Grampians and Eastern Metropolitan regions, worth a combined value of $340 million.

Speaker #2: And in August, we were also awarded two intelligent transport systems maintenance contracts valued at $160 million over five years, which further expands our presence across the Victoria transport network.

Dean Banks: In August, we were also awarded two intelligent transport systems maintenance contracts valued at AUD 160 million over five years, which further expands our presence across the Victoria transport network. Taken together, these awards demonstrate the resilience of our diversified portfolio across sectors and geographies. Our strategy has aligned Ventia over the past five years by giving our people a clear framework.

Speaker #2: Taken together, these awards demonstrate the resilience of our diversified portfolio across sectors and geographies. Our strategy has aligned Ventia over the past five years by giving our people a clear framework.

Speaker #2: At its core, our aspiration to redefine service excellence is about focusing on building deeper customer relationships and embracing innovation, while creating sustainable outcomes that help differentiate Ventia.

Dean Banks: At its core, our aspiration to redefine service excellence is about focusing on building deeper customer relationships and embracing innovation whilst creating sustainable outcomes that help differentiate Ventia. In our latest customer Have Your Say survey, 89% of customers said Ventia enables them to achieve their goals, and our net promoter score increased 140%, reflecting stronger customer advocacy. Innovation is the second pillar and a key driver of operational performance. It helps us become a better informed and engaged organization that introduces solutions to enhance stakeholder experience. VenSpark, our AI idea management platform, helps to bring ideas together from across our organization. Since its launch last year, more than 550 ideas have been submitted. One such example is VenLens, which uses AI to analyze field images to review work orders, increase compliance reporting, and maintain better records of asset condition.

Speaker #2: In our latest customer Have Your Say survey, 89% of customers said Ventia enables them to achieve their goals, and our net promoter score increased by 140%.

Speaker #2: Reflecting stronger customer advocacy, innovation is the second pillar and a key driver of operational performance. It helps us become a better-informed and engaged organisation that introduces solutions to enhance stakeholder experience.

Speaker #2: Ventspark, our AI idea management platform, helps to bring ideas together from across our organisation. Since its launch last year, more than 550 ideas have been submitted.

Dean Banks: Since its launch last year, more than 550 ideas have been submitted. One such example is VenLens, which uses AI to analyze field images to review work orders, increase compliance reporting, and maintain better records of asset condition.

Speaker #2: One such example is Venlens, which uses AI to analyse field images to review work orders, increase compliance reporting, and maintain better records of asset condition.

Speaker #2: It is a great illustration of how we are using AI to unlock efficiencies across our operations. Sustainability is the third pillar of our strategy and is embedded in how we create long-term value.

Dean Banks: It is a great illustration of how we are using AI to unlock efficiencies across our operations. Sustainability is the third pillar of our strategy and is embedded in how we create long-term value, from our climate transition ambitions through to how we measure social impact. Our fleet electrification program is nearing completion, with 97% of passenger vehicles now electric or hybrid, and full transition is expected by the end of this calendar year. We now operate 606 electric or hybrid vehicles across our fleet, contributing to the 27.2% reduction in Scope 1 and 2 emissions from our 2021 baseline. Overall, our group strategy strengthens our competitive advantage and supports long-term value creation for customers, communities, and shareholders. Before I hand over to Mark, I would like to leave you with a few observations on what the H1 2026 result demonstrates about the strength and momentum of the business.

Speaker #2: From our climate transition ambitions through to how we measure social impact, our fleet electrification program is nearing completion, with 97% of passenger vehicles now electric or hybrid, and full transition is expected by the end of this calendar year.

Speaker #2: We now operate 606 electric or hybrid vehicles across our fleet, contributing to the 27.2% reduction in Scope 1 and 2 emissions from our 2021 baseline.

Speaker #2: Overall, our group strategy strengthens our competitive advantage and supports long-term value creation for customers, communities, and shareholders. Before I hand over to Mark, I'd like to leave you with a few observations on what the half-year 2026 result demonstrates about the strength and momentum of the business.

Speaker #2: We have again delivered on expectations, with a record EBITDA margin of 9.4%, reflecting our continued shift towards higher value work and pursuit of continuous improvement.

Dean Banks: We have again delivered on expectations with a record EBITDA margin of 9.4%, reflecting our continued shift towards higher value work and pursuit of continuous improvement. Cash conversion remains strong, driven by disciplined and transparent capital management. We achieved a 98% customer renewal rate and increased work in hand to AUD 21.1 billion, reinforcing the resilience of our contracted revenue base. Our performance also enabled us to increase returns to shareholders with a 9.8% uplift in the interim dividend and a 14.4% year-on-year growth in earnings per share. Ventia is well positioned for the future with strong momentum and a clear pathway to create value for our shareholders. We remain on track to deliver full year 2026 guidance. I will now hand over to Mark to provide additional financial detail.

Speaker #2: Cash conversion remains strong, driven by disciplined and transparent capital management. We achieved a 98% customer renewal rate and increased working hand to $21.1 billion.

Speaker #2: Reinforcing the resilience of our contracted revenue base. Our performance also enabled us to increase returns to shareholders, with a 9.8% uplift in the interim dividend and a 14.4% year-on-year growth in earnings per share.

Speaker #2: Ventia is well positioned for the future, with strong momentum and a clear pathway to create value for our shareholders. We remain on track to deliver full-year '26 guidance.

Speaker #2: I will now hand over to Mark to provide additional financial detail.

Speaker #1: Thanks, Dean, and welcome everyone to our half-year results. This slide highlights our performance across five consecutive half-year periods since listing at the end of 2021.

Mark Fleming: Thanks, Dean, and welcome everyone to our half year results. This slide highlights our performance across five consecutive half-year periods since listing at the end of 2021, with all key metrics showing strong improvement over that time. Revenue is 15% higher than HY22, reflecting robust work winning and enduring customer relationships. The decline year on year was driven by the transition to the new Defence Base Services contract. With that contract now mobilized, we expect a return to revenue growth from the second half of FY2026. EBITDA increased by 34%, reflecting strong business performance and operational discipline. Margin expanded significantly in HY26 to a record high of 9.4%. NPATA has increased by an impressive 50% as a result of sustained business performance, strong cash conversion, and our capital light business model. While earnings per share has grown by 76%, underpinned by disciplined capital management.

Speaker #1: With all key metrics showing strong improvement over that time. Revenue is 15% higher than HY22, reflecting robust work winning and enduring customer relationships. The decline year-on-year was driven by the transition to the new defence-based services contract.

Speaker #1: With that contract now mobilised, we expect a return to revenue growth from the second half of FY26. EBITDA increased by 34%, reflecting strong business performance and operational discipline.

Speaker #1: Margin expanded significantly in HY26 to a record high of 9.4%. MPATA has increased by an impressive 50% as a result of sustained business performance, strong cash conversion, and our capital-light business model, while earnings per share have grown by 76%, underpinned by disciplined capital management.

Mark Fleming: Margin expanded significantly in HY26 to a record high of 9.4%. NPATA has increased by an impressive 50% as a result of sustained business performance, strong cash conversion, and our capital light business model. While earnings per share has grown by 76%, underpinned by disciplined capital management.

Speaker #1: Overall, Ventia has delivered consistent and reliable growth since listing, demonstrating the resilience of our diversified portfolio, the strength of our customer relationships, and the ongoing demand for our services.

Mark Fleming: Overall, Ventia has delivered consistent and reliable growth since listing, demonstrating the resilience of our diversified portfolio, the strength of our customer relationships, and the ongoing demand for our services. Looking more closely at our financial performance for the year. I will not go over the headline numbers that Dean has already covered, and I will focus on the underlying numbers. Depreciation expense increased by 12.9%, reflecting the increase in investment in plant and equipment, primarily underpinning our rigs and wells business and recently mobilized contracts. Amortization expense decreased as some of our software and acquired intangibles were fully amortized. We expect that amortization will begin to increase from the second half of this financial year following the implementation of our new SAP system.

Speaker #1: Looking more closely at our financial performance for the year, I won't go over the headline numbers that Dean has already covered, and I'll focus on the underlying numbers.

Speaker #1: Depreciation expense increased by 12.9%, reflecting the increase in investment in plant and equipment, primarily underpinning our rigs and wells business, and recently mobilised contracts.

Speaker #1: Amortisation expense decreased, as some of our software and acquired intangibles were fully amortised. We expect that amortisation will begin to increase from the second half of this financial year, following the implementation of our new SAP system.

Speaker #1: Net interest expense increased by $7.6 million, as a result of an increase in the interest component of lease liabilities under AASB 16, and an increase in net debt due to the buyback and capital expenditure.

Mark Fleming: Net interest expense increased by AUD 7.6 million as a result of an increase in the interest component of lease liabilities under AASB 16, and an increase in net debt due to the buyback and capital expenditure. Finally, our earnings per share grew by 14.4% compared to the same period last year, which is higher than NPATA growth due to the reduction in shares on issue as a result of the on-market share buyback program. Ventia's portfolio is diversified across sectors, geographies, and contracts. While revenue declined in DSI, we saw revenue growth in the other three sectors. Likewise, while margin declined in telco, we saw significant margin improvement in the other three sectors. Our Defence and Social Infrastructure revenue declined by 20% to AUD 999 million, predominantly reflecting the transition to the new base services contracts and scope reductions in housing and communities contracts. EBITDA reduced by 10.3%.

Speaker #1: Finally, our earnings per share grew by 14.4% compared to the same period last year, which is higher than NPATA growth due to the reduction in shares on issue as a result of the on-market share buyback programme.

Speaker #1: Ventia's portfolio is diversified across sectors, geographies, and contracts. While revenue declined in DSI, we saw revenue growth in the other three sectors. Likewise, while margin declined in Telco, we saw significant margin improvement in the other three sectors.

Speaker #1: Our Defence and Social Infrastructure revenue declined by 20% to $999 million, predominantly reflecting the transition to the new base services contracts and scope reductions in Housing and Communities contracts.

Mark Fleming: Our Defence and Social Infrastructure revenue declined by 20% to AUD 999 million, predominantly reflecting the transition to the new base services contracts and scope reductions in housing and communities contracts. EBITDA reduced by 10.3%.

Speaker #1: EBITDA reduced by 10.3%; however, EBITDA margin improved by 1 percentage point due to proactive cost management in advance of the expected revenue reduction. As Dean mentioned, we successfully mobilised the new base services contract in February, and the new defence clothing contract in May.

Mark Fleming: However, EBITDA margin improved by one percentage point due to proactive cost management in advance of the expected revenue reduction. As Dean mentioned, we successfully mobilized the new base services contract in February and the new Defence Clothing contract in May. As a result, we expect a higher run rate in Defence for both revenue and EBITDA in the H2. Infrastructure Services saw revenue increase by 6.3% to AUD 733 million, and EBITDA reached AUD 75 million, up by 24.6%, assisted by a 1.5 percentage point increase in sector margin. This was driven by continuing growth in the energy and water segments and the ramp-up of some new contracts in the higher margin rigs and wells business. We expect these positive trends to continue into the H2. Telecommunications revenue increased by 5.9% during the half, albeit lower than the H2 2025.

Speaker #1: As a result, we expect a higher run rate in Defence for both revenue and EBITDA in the second half. Infrastructure Services saw revenue increase by 6.3% to $733 million, and EBITDA reached $75 million, up by 24.6%, assisted by a 1.5 percentage point increase in sector margin.

Speaker #1: This was driven by continuing growth in the energy and water segments, and the ramp-up of some new contracts in the higher-margin Rigs and Wells business.

Speaker #1: We expect these positive trends to continue into the second half. Telecommunications revenue increased by 5.9% during the half, albeit lower than the second half of 2025.

Speaker #1: EBITDA was up slightly to $97.9 million, and EBITDA margin remained within our target range at 12%. This performance reflects the mobilisation of new contracts over the last 12 months.

Mark Fleming: EBITDA was up slightly to AUD 97.9 million, and EBITDA margin remained within our target range at 12%. This performance reflects the mobilization of new contracts over the last 12 months. Our transport business saw revenue increase by 5.3%, and EBITDA increased by 29.3% as a result of additional volumes and operational improvements. Overall, the group delivered a solid H1 performance. The result highlights the benefits of diversification and our continued focus on operational excellence. Now to our capital allocation framework. Cash generation remains strong and our credit profile is robust. Net debt to EBITDA increased closer to the middle of our range at 1.4 times. At the same time, we continue to invest to grow our business. This half year, we saw an increase in our CapEx to AUD 53.6 million, or 1.9% of revenue.

Speaker #1: Our Transport business saw revenue increase by 5.3%, and EBITDA increased by 29.3% as a result of additional volumes and operational improvements. Overall, the group delivered a solid first half performance.

Speaker #1: The result highlights the benefits of diversification and our continued focus on operational excellence. Now, to our capital allocation framework. Cash generation remains strong, and our credit profile is robust.

Speaker #1: Net debt to EBITDA increased, moving closer to the middle of our range at 1.4 times. At the same time, we continue to invest to grow our business.

Speaker #1: This half-year, we saw an increase in our capex to $53.6 million, or 1.9% of revenue. As indicated previously, we expect capex to move towards 2.5% of revenue this year, due to our SAP upgrade.

Mark Fleming: As indicated previously, we expect CapEx to move towards 2.5% of revenue this year due to our SAP upgrade. The upgrade is progressing well, and we expect the final implementation to occur by the end of the H2. From FY27 onward, we expect CapEx to return to a more normalized level of 1% to 2% of revenue. Finally, we've delivered strong returns to our shareholders. We've increased our interim dividend by 9.8%, and we've continued to make steady progress on our share buyback program, having purchased in excess of AUD 185 million since commencement in March 2025. Ventia continues to deploy capital in a disciplined manner, balancing investment in future growth, maintaining a strong balance sheet, and delivering increased returns to shareholders. The next slide illustrates the strength of our balance sheet.

Speaker #1: The upgrade is progressing well, and we expect the final implementation to occur by the end of the second half. From FY27 onward, we expect capex to return to a more normalised level of 1 to 2% of revenue.

Speaker #1: Finally, we've delivered strong returns to our shareholders. We've increased our interim dividend by 9.8%, and we've continued to make steady progress on our share buyback program, having purchased in excess of $185 million since commencement in March 2025.

Speaker #1: Ventia continues to deploy capital in a disciplined manner, balancing investment in future growth, maintaining a strong balance sheet, and delivering increased returns to shareholders.

Speaker #1: The next slide illustrates the strength of our balance sheet. As at 30 June, we had $880 million of liquidity in cash and undrawn facilities.

Mark Fleming: As at 30 June, we had AUD 880 million of liquidity in cash and undrawn facilities, strong credit metrics, and a lengthened and diversified debt profile. During the period, we successfully completed a AUD 300 million Australian medium-term note issuance, diversifying our funding sources, extending our weighted average maturity, and providing additional financial flexibility. This transaction was more than three times oversubscribed, reflecting strong support from debt markets. Our S&P and Moody's ratings remain stable and unchanged, and we are well within our banking covenants. These settings give us the strength and flexibility to grow organically, fund future opportunities, and continue delivering long-term value for shareholders. We recognize the importance of dividends to many of our shareholders, and we remain focused on delivering a reliable and increasing dividend stream. This period, we have moved to 100% ranking from 90%, which we expect to sustain going forward.

Speaker #1: Strong credit metrics, and a lengthened and diversified debt profile. During the period, we successfully completed a $300 million Australian medium term note issuance, diversifying our funding sources, extending our weighted average maturity, and providing additional financial flexibility.

Speaker #1: This transaction was more than three times oversubscribed, reflecting strong support from debt markets. Our S&P and Moody's ratings remain stable and unchanged, and we're well within our banking covenants.

Mark Fleming: Our S&P and Moody's ratings remain stable and unchanged, and we are well within our banking covenants. These settings give us the strength and flexibility to grow organically, fund future opportunities, and continue delivering long-term value for shareholders. We recognize the importance of dividends to many of our shareholders, and we remain focused on delivering a reliable and increasing dividend stream. This period, we have moved to 100% ranking from 90%, which we expect to sustain going forward.

Speaker #1: These settings give us the strength and flexibility to grow organically, fund future opportunities, and continue delivering long-term value for shareholders. We recognise the importance of dividends to many of our shareholders, and we remain focused on delivering a reliable and increasing dividend stream.

Speaker #1: This period, we've moved to 100% ranking from 90%, which we expect to sustain going forward. We announced an interim dividend of 11.76 cents per share, to be paid on the 8th of October.

Mark Fleming: We announced an interim dividend of AUD 0.1176 per share to be paid on 8 October. This dividend represents a 75% payout ratio of NPATAA within our target range of 60% to 80%. I am also pleased to confirm today that we have upsized our buyback by AUD 50 million to a total program size of AUD 300 million. In making this decision, the board and management considered the consistent cash generative nature of our business, the strong balance sheet, and our positive outlook. We will continue to remain focused on increasing our overall returns to shareholders. I will now hand back to Dean.

Speaker #1: This dividend represents a 75% payout ratio of MPAT-A, within our target range of 60% to 80%. I'm also pleased to confirm today that we have upsized our buyback by $50 million, to a total program size of $300 million.

Speaker #1: In making this decision, the Board and management considered the consistent cash-generative nature of our business, the strong balance sheet, and our positive outlook.

Speaker #1: We'll continue to remain focused on increasing our overall returns to shareholders. I'll now hand back to Dean.

Speaker #2: Thank you, Mark. As communicated at our recent Investor Day, Ventia is focused on realising opportunities associated with four strategic growth markets: namely, defence, digital infrastructure, energy, and water, each offering significant structural tailwinds.

Dean Banks: Thank you, Mark. As communicated at our recent Investor Day, Ventia is focused on realizing opportunities associated to four strategic growth markets, namely defense, digital infrastructure, energy, and water. Each offering significant structural tailwinds. Oxford Economics estimates Ventia's defense business will have an addressable market of AUD 16 billion by 2030, driven by meaningful investment into programs like AUKUS, the northern force posture, and ongoing defense estate and remediation work. Ventia is in a good position to expand our current market share of 10% through our current interface in geographies such as Henderson Precinct in WA and defense bases across Australia. Digital infrastructure is forecast to have a AUD 19.8 billion market by 2030, supported by increasing connectivity and AI adoption. The expansion of core networks across fiber, mobile, and fixed line, and the growth in demand for satellites and data centers are all significant market opportunities for Ventia.

Speaker #2: Oxford Economics estimates Ventia's defence business will have an addressable market of $16 billion by 2030, driven by meaningful investment into programs like AUKUS, the Northern Force Posture, and ongoing defence estate and remediation work.

Speaker #2: Ventia is in a good position to expand our current market share of 10% through our current interface in geographies such as the Henderson Precinct in WA and defence bases across Australia.

Speaker #2: Digital infrastructure is forecast to have a $19.8 billion market by 2030, supported by increasing connectivity and AI adoption. The expansion of core networks across fibre, mobile, and fixed line, and the growth in demand for satellites and data centres, are all significant market opportunities for Ventia.

Dean Banks: Digital infrastructure is forecast to have a AUD 19.8 billion market by 2030, supported by increasing connectivity and AI adoption. The expansion of core networks across fiber, mobile, and fixed line, and the growth in demand for satellites and data centers are all significant market opportunities for Ventia.

Speaker #2: For energy and renewables, the 2030 addressable market is estimated to be $21.9 billion, driven by demand for grid decarbonisation, battery storage systems, renewables, and high-voltage substation demand.

Dean Banks: For energy and renewables, the 2030 addressable market is estimated to be AUD 21.9 billion, driven by demand for grid decarbonization, battery storage systems, renewables, and high voltage substation demand. We have a long history in operations and maintenance of transmission and distribution, and more recently, have introduced specialist end-to-end high voltage and substation capabilities, giving us confidence in our ability to grow in this capability. The uptick in the investment cycle for water has commenced, driven by the need to address aging infrastructure, population growth, and climate resilience. Water assets built in the 1960s and 1970s are reaching end of life, driving refreshed master plans with multi-year renewal and modernization programs. Collectively, these markets provide Ventia with an unprecedented and significant growth opportunity. Case studies are the most effective way to showcase the work we are already delivering across each of these strategic growth markets.

Speaker #2: We have a long history in operations and maintenance of transmission and distribution. And more recently, I've introduced specialist end-to-end high-voltage and substation capabilities.

Speaker #2: Given us confidence in our ability to grow in this capability. The uptick in the investment cycle for water has commenced, driven by the need to address aging infrastructure, population growth, and climate resilience.

Speaker #2: Water assets built in the 1960s and '70s are reaching end of life, driving refreshed master plans with multi-year renewal and modernisation programs. Collectively, these markets provide Ventia with an unprecedented and significant growth opportunity.

Dean Banks: Water assets built in the 1960s and 1970s are reaching end of life, driving refreshed master plans with multi-year renewal and modernization programs. Collectively, these markets provide Ventia with an unprecedented and significant growth opportunity. Case studies are the most effective way to showcase the work we are already delivering across each of these strategic growth markets.

Speaker #2: Case studies are the most effective way to showcase the work we are already delivering across each of these strategic growth markets. In Defence, we secured an extension of our defence maintenance contract, taking us through to December 2029, with options to extend for a further four years.

Dean Banks: In Defence, we secured an extension of our Defence maintenance contract, taking us through to December 2029, with options to extend for a further 4 years. Under this contract, we provide maintenance and support for some of Australia's most advanced Defence assets and a 24/7 nationwide recovery service. This extension reflects Defence's confidence in Ventia and builds on a trusted partnership spanning more than 35 years. In the digital infrastructure market, we have successfully delivered 13 edge data centers for Telstra's Aura network program. Traditional network exchanges are being transformed into edge computing sites, and there will be an increasing requirement to build and maintain this new type of infrastructure moving forward. In the energy sector, Ventia is building critical grid connection infrastructure for the Kōwhai Park solar farm in New Zealand, including two high voltage substations and 5.5 kilometers of cabling, supporting renewable energy generation in Christchurch.

Speaker #2: Under this contract, we provide maintenance and support for some of Australia's most advanced defence assets, and a 24/7 nationwide recovery service. This extension reflects Defence's confidence in Ventia and builds on a trusted partnership spanning more than 35 years.

Speaker #2: In the digital infrastructure market, we have successfully delivered 13 edge data centres for Telstra's Aura Network program. Traditional network exchanges are being transformed into edge computing sites, and there will be an increasing requirement to build and maintain this new type of infrastructure moving forward.

Dean Banks: Traditional network exchanges are being transformed into edge computing sites, and there will be an increasing requirement to build and maintain this new type of infrastructure moving forward. In the energy sector, Ventia is building critical grid connection infrastructure for the Kōwhai Park solar farm in New Zealand, including two high voltage substations and 5.5 kilometers of cabling, supporting renewable energy generation in Christchurch.

Speaker #2: In the energy sector, Ventia is building critical grid connection infrastructure for the Kowhai Park Solar Farm in New Zealand, including two high voltage substations and 5.5 kilometres of cabling.

Speaker #2: Supporting renewable energy generation in Christchurch. In respect of water, we recently secured a new nine-year contract with Yarra Valley Water to deliver network and asset maintenance services, extending a trusted partnership we've built over the last decade.

Dean Banks: In respect of water, we recently secured a new 9-year contract with Yarra Valley Water to deliver network and asset maintenance services, extending a trusted partnership we've built over the last decade. To scale our partnership, in 2025 alone, Ventia completed over 10,000 work orders in support of Yarra Valley Water's assets. These examples demonstrate the depth of Ventia's capability and track record of successful delivery in all four of our current growth markets. They also reinforce our confidence in the opportunity to expand our presence and create long-term growth. In closing, Ventia enters the H2 of 2026 with strong momentum, a resilient portfolio, and a clear pathway to continued earnings growth. The business is performing in line with expectations. Our strategic markets continue to provide attractive long-term opportunities, and we remain focused on delivering sustainable value for shareholders.

Speaker #2: To scale our partnership in 2025 alone, Ventia completed over 10,000 work orders in support of Yarra Valley's water assets. These examples demonstrate the depth of Ventia's capability and track record of successful delivery in all four of our current growth markets.

Speaker #2: They also reinforce our confidence in the opportunity to expand our presence and create long-term growth. In closing, Ventia enters the second half of 2026 with strong momentum, a resilient portfolio, and a clear pathway to continued earnings growth.

Speaker #2: The business is performing in line with expectations. Our strategic markets continue to provide attractive, long-term opportunities, and we remain focused on delivering sustainable value for shareholders.

Speaker #2: We remain on track to deliver full-year EMPAA growth of 7% to 10%, supported by strong cash conversion and operating discipline across the business.

Dean Banks: We remain on track to deliver full year NPATAA growth of 7% to 10%, supported by strong cash conversion and operating discipline across the business. Importantly, the continued shift towards higher margin work is expected to support a long-term EBITDA margin above 9%, reinforcing the quality of earnings profile we have been building. Our balance sheet remains strong, giving us flexibility to invest in future growth. We continue to return capital to shareholders via the upsize share buyback. As these are my final results as CEO of Ventia, I would like to briefly reflect on progress since listing. Over the past 5 years, we have strengthened safety, deepened customer relationships, grown work in hand, expanded margins, and delivered strong shareholder returns. We have built a high-quality business with a clear strategy and a solid foundation for continued growth.

Speaker #2: Importantly, the continued shift towards higher-margin work is expected to support a long-term EBITDA margin above 9%, reinforcing the quality of earnings profile we have been building.

Speaker #2: Our balance sheet remains strong, giving us flexibility to invest in future growth. We continue to return capital to shareholders via the upsized share buyback.

Speaker #2: As these are my final results as CEO of Ventia, I would like to briefly reflect on our progress since listing. Over the past five years, we have strengthened safety, deepened customer relationships, grown our workforce, expanded margins, and delivered strong shareholder returns.

Speaker #2: We have built a high-quality business with a clear strategy and a solid foundation for continued growth. That progress reflects the dedication of our people and the trust placed in us by our customers, subcontractors, suppliers, board, and shareholders.

Dean Banks: That progress reflects the dedication of our people and the trust placed in us by our customers, subcontractors, suppliers, Board, and shareholders. I'm incredibly proud of what we've achieved together and grateful for the support I've received during my tenure. As announced in June, Mark Ralston will formally take over as CEO from next week. Mark has been with Ventia for more than 12 years and brings a deep knowledge of our operations, customers, and markets. I'm delighted to see him appointed as my successor and view this internal appointment as a key legacy of my tenure. I'm pleased to be handing over a business with strong momentum, solid fundamentals, and a high-quality pipeline. Ventia is well-positioned for the future, and I leave knowing the company is in capable hands. I'll watch its progress from afar with confidence in the years ahead.

Speaker #2: I'm incredibly proud of what we've achieved together and grateful for the support I've received during my tenure. As announced in June, Mark Ralston will formally take over as CEO from next week.

Speaker #2: Mark has been with Ventia for more than 12 years and brings a deep knowledge of our operations, customers, and markets. I'm delighted to see him appointed as my successor, and I view this internal appointment as a key legacy of my tenure.

Speaker #2: I'm pleased to be handing over a business with strong momentum, solid fundamentals, and a high-quality pipeline. Ventia is well positioned for the future, and I leave knowing the company is in capable hands.

Speaker #2: I'll watch its progress from afar with confidence in the years ahead. Once again, and for one final time, thank you. I will now open the call for questions.

Dean Banks: Once again, and for one final time, thank you. I will now open the call for questions. Over to you, Rocco.

Speaker #2: Over to you, Rocco.

Speaker #3: Thank you. If you wish to ask a question, please press star one (*) on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two (*2).

Operator 2: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Today's first question comes from Nick Deich at RBC. Please go ahead.

Operator: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you are on a speakerphone, please pick up the handset to ask your question. Today's first question comes from Nick Deich at RBC. Please go ahead.

Speaker #3: If you are on speakerphone, please pick up the handset to ask your question. Today's first question comes from Nick Desh at RBC. Please go ahead.

Speaker #1: Oh, thank you very much. And Dan, congrats on your time. We at Ventia. My first question is just around seasonality. I'm just curious about what you would view as being a typical or normal level of seasonality within your business.

Nick Deich: Thank you very much, and Dean, congrats on your time with Ventia. My first question is just around seasonality. I am just curious on what you would view as being a typical or a normal level of seasonality within your business. My sense is that it is likely largely in transport, which is your smallest division. Just curious, I think historically in the last few years, it has been about 42/58, 48/52, sorry. Is that about right moving forward, or what would you view as normal, please?

Nick Daish: Thank you very much, and Dean, congrats on your time with Ventia. My first question is just around seasonality. I am just curious on what you would view as being a typical or a normal level of seasonality within your business. My sense is that it is likely largely in transport, which is your smallest division. Just curious, I think historically in the last few years, it has been about 42/58, 48/52, sorry. Is that about right moving forward, or what would you view as normal, please?

Speaker #1: My sense is that it's likely largely in Transport, which is your smallest division. So just curious, I think historically in the last few years it's been about 42, 50, 48, 52—sorry.

Speaker #1: Is that about right moving forward, or what would you view as normal, please?

Speaker #2: Nick, first of all, thank you for the question. I'll probably open and then hand over to Mark to give a bit more detail. I mean, we've always said seasonality in our business is relatively limited, and that's really driven by the fact that the holiday periods, where we see a bit of a slowing down in revenue, occur in the first half in January and, in the second half, in December.

Dean Banks: Nick, first of all, thank you for the question. I will probably open and then hand to Mark to give a bit more detail. We have always said seasonality in our business is relatively limited, and that is really driven by the fact that the holiday period is where we see a bit of a slowing down in revenue occur in the H1 in January and in the H2 in December. Apart from that, we do see a lot of customers, obviously, with June year-end, and sometimes we can see an uptick therefore in that particular period. You are quite right. Historically, the H1 has been a little bit lower than the H2, but it has been relatively marginal. We probably expected it to be a bit more profound this year, but we are now starting to see that probably it is going to be consistent with previous years.

Speaker #2: Apart from that, we do see a lot of customers, obviously, with a June year-end, and sometimes we can see an uptick there in that particular period.

Speaker #2: But you're quite right. Historically, the first half has been a little bit lower than the second half, but it's been relatively marginal. We probably expected it to be a bit more pronounced this year, but we're now starting to see that it's probably going to be consistent with previous years.

Speaker #2: Mark, do you want to add?

Dean Banks: Mark, do you want to add?

Speaker #4: Yeah, sure. Look, just to build on that, I think last year at the EMPA A-line, the seasonality was 46% and 54%—so, 46% first half, 54% second half.

Mark Fleming: Yeah, sure. Look, just to build on that. I think last year at the NPATA line, the seasonality was 46%/54%, so 46% H1, 54% H2. We are actually anticipating to be quite similar this year, 46/54 or thereabout. Obviously, it can vary one or two percentage points either way, but a similar amount of seasonality as in prior years.

Speaker #4: We're actually anticipating it to be quite similar this year—46-54, or thereabouts. Obviously, it can vary one or two percentage points either way, but a similar amount of seasonality as in prior years.

Speaker #1: Okay, great. Thank you. Very clear. The second one is just around Defense. Obviously, Mobilize—the new contract at the start of this year. I'm just curious on the mobilization and demobilization costs that you've taken above the line during the period, and just trying to get a sense for their quantum, given they will not repeat in FY27, please.

Nick Deich: Okay, great. Thank you. Very clear. Second one is just around Defence, obviously mobilized a new contract at the start of this year. I am just curious on the mobilization and demobilization costs that you have taken above the line during the period and just trying to get a sense for their quantum given they will not repeat in FY27, please.

Nick Daish: Okay, great. Thank you. Very clear. Second one is just around Defence, obviously mobilized a new contract at the start of this year. I am just curious on the mobilization and demobilization costs that you have taken above the line during the period and just trying to get a sense for their quantum given they will not repeat in FY27, please.

Speaker #2: Yeah, look, I mean, again, I'll hand over to Mark and Nick to give a bit more detail, but I think the first thing to say is that we've always operated under the principle that we want the business to be as clean as possible from a financial perspective.

Dean Banks: Yeah, look, again, I will hand over to Mark, Nick, to give a bit more detail. But I think the first thing to say is that we have always operated under the principle that we want the business to be as clean as possible from a financial perspective. So we try to keep everything within normal trading. So we have never put any numbers around that particular category, but clearly there is a cost to that. And there are costs to other things that occur in the period. Like, for instance, in the last six months, although a lot of people are not talking about it now, we had the fuel crisis come through as well. So we try and take them within trading, and there is obviously puts and takes in that that we consider as we go through a period of time. But Mark, do you want to add a bit more detail?

Speaker #2: So, we try to keep everything within normal trading. We’ve never put any numbers around that particular category, but clearly, there’s a cost to that.

Speaker #2: And there are costs to other things that occur in the period. For instance, in the last six months, although a lot of people are not talking about it now, we had the fuel crisis come through as well.

Speaker #2: So we try and take them within trading, and there are obviously puts and takes in that that we consider as we go through a period of time.

Speaker #2: But Mark, do you want to add a bit more detail?

Speaker #4: Yeah, I think that's right. So we don't call out specific numbers, as Dean says. That's the approach that we've taken. There are always one-off costs and one-off benefits, and the other one I'd call out is the SAP upgrade cost this year, but we've included all of those within our result.

Mark Fleming: Yeah, I think that is right. We do not call out specific numbers. As Dean says, that is the approach that we have taken. There are always one-off costs and one-off benefits, and the other one I would call out is the SAP upgrade cost this year. But we have included all of those within our result, and that is the approach we take. Sometimes that is a benefit for us in the half and sometimes it is a negative. But as Dean said, swings and roundabouts.

Speaker #4: And that's the approach we take. Sometimes that is a benefit for us in the half, and sometimes it's a negative—but as Dean said, swings and roundabouts.

Speaker #2: The one thing I'd just probably reiterate, Nick, is that both contracts for Defence that we mobilised in the first half—the team have done so successfully.

Dean Banks: The one thing I should probably reiterate, Nick, is that both contracts for Defence that we mobilized in the H1, the team have done so successfully. So Defence Base Services followed by Defence Clothing in June of this year. And both of those are building momentum, so we expect them to perform better for the organization as we move forward.

Speaker #2: So defense-based services, followed by defense clothing, in June of this year. Both of those are building momentum, so we expect them to perform better for the organization as we move forward.

Speaker #1: Very clear. So both tailwinds into ’27. Thank you very much for taking my questions.

Nick Deich: Very clear. Both tailwinds in 2027. Thank you very much for taking my questions.

Nick Daish: Very clear. Both tailwinds in 2027. Thank you very much for taking my questions.

Speaker #2: Thanks, Nick.

Dean Banks: Thanks, Nick.

Speaker #3: Thank you. And our next question today comes from Cameron Needham at Bank of America. Please go ahead.

Operator 2: Thank you. Our next question today comes from Cameron Needham at Bank of America. Please go ahead.

Operator: Thank you. Our next question today comes from Cameron Needham at Bank of America. Please go ahead.

Speaker #1: Morning all, and thanks for the presentation. First one, just on group EBITDA margins. So, you've gone from 8.3% to 9.4%, despite your revenue coming off by about 5%.

Cameron Needham: Morning, all, and thanks for the presentation. First one, just on group EBITDA margins. You have gone from 8.3% to 9.4%, despite your revenue coming off by about 5%. You have highlighted mix and efficiencies being tailwinds, but just intrigued, I guess, how much of that 1.1% improvement would you describe as structural versus timing and mix benefits? Then I guess, if we just think into the sort of medium term, would you say that sort of 9% plus is now a reasonable through the cycle margin level for the group? Thanks.

Speaker #1: You've highlighted mix and efficiencies being tailwinds, but I'm just intrigued, I guess—how much of that 1.1% improvement would you describe as structural versus timing and mix benefits?

Speaker #1: And then, I guess if we just think into the sort of medium term, would you say that sort of 9% plus is now a reasonable through-the-cycle margin level for the group?

Speaker #1: Thanks.

Speaker #2: Yeah, Cameron, again, thank you for the question. Look, we've been quite bullish about margin in previous periods and felt that it was going up.

Dean Banks: Yeah. Cameron, again, thank you for the question. Look, we have been quite bullish about margin in previous periods and felt that it was going up, largely driven, as you say, by mix with our two highest margin sectors, infrastructure services and telecommunications seeing growth. Which obviously means that every dollar there is accretive versus the group average. That said, back to your point, is this structural? I think there are lots of things that have changed over the last five years that have been trying to drive to this outcome. The first thing is that, five years ago, our distribution curve across projects probably had three or four projects that were outperforming versus the market in terms of margin, and they have largely been corrected by renewals in the market. We had a lot of contracts that were underperforming, largely a consequence of the acquisition of Broadspectrum.

Speaker #2: Largely driven, as you say, by mix with our two highest-margin sectors—infrastructure services and telecommunications—seeing growth, which obviously means that every dollar there is accretive versus the group average.

Speaker #2: That said, back to your point, is this structural? I think there are lots of things that have changed over the last five years that have been trying to drive to this outcome.

Speaker #2: The first thing is that, five years ago, our distribution curve across projects probably had three or four projects that were outperforming versus the market in terms of margin.

Speaker #2: And they've largely been corrected by renewals and the market. We had a lot of contracts that were underperforming, largely as a consequence of the acquisition of Broad Spectrum.

Speaker #2: And we've really addressed those unfavorable and onerous contracts by either improving the performance, or replacing them with contracts that are better in our portfolio.

Dean Banks: We have really addressed those unfavorable and onerous contracts by either improving the performance or replacing them with contracts that are better in our portfolio. I mean, we are at a point now where we have only got one contract left from that legacy that will mean about a AUD 1 million release per annum for the next 15 years, unless, again, we can improve it further. So we have really cleaned up the business from that perspective. But also structurally, we have been trying to drive towards higher margin works. Not just in Defence, digital infrastructure, energy, and water, where clearly as demand comes on, you can get better commercial terms. But if I go back three or four years in telecommunications, the team didn't see the benefit of margins on wireless work that they did on fixed.

Speaker #2: I mean, we're at a point now where we've only got one contract left from that legacy. That will mean about a $1 million release per annum for the next 15 years, unless, again, we can improve it further.

Speaker #2: So, we've really cleaned up the business from that perspective. But also, structurally, we've been trying to drive towards higher-margin works. And not just in defense, digital infrastructure, energy, and water, where clearly, as demand comes on, you can get better commercial terms.

Speaker #2: But if I go back three or four years in telecommunications, the team didn't see the benefit of margins on wireless work that they did on fixed.

Speaker #2: So, we really focused our attention on fixed network work, where we get a better return. I think if you look at Defense and Social Infrastructure, we've really pushed more for hard FM and soft FM, where cleaning and catering attracts a more modest margin.

Dean Banks: We really focused our attention on fixed network work where we get a better return. I think if you look at Defence and social infrastructure, we've really pushed more for hard FM than soft FM, where cleaning and catering attracts a more modest margin. Latterly in resources, we've really been looking at our activity on more labor hire type work for mechanical and electrical fitters. We're moving more into that energy and water space where we can appreciate better margins. I think it is structural. Of course, with that as well, we do look at continuous improvement generally and try and drive efficiencies. I think transport is a great example of that, where there's probably no material change, but actually just better operational control over activities we deliver.

Speaker #2: And latterly, in Resources, we've really been looking at our activity on more labor hire type work for mechanical and electrical fitters. We're moving more into that energy and water space, where we can appreciate better margins.

Speaker #2: So I think it is structural. Of course, with that as well, we do look at continuous improvement generally and try to drive efficiencies. And I think transport is a great example of that, where there's probably no material change, but actually just better operational control over activities we deliver.

Speaker #2: So, all in all, a really good result on margin. I think we're very confident that we've got a sustainable margin moving forward, and we'll continue to strive to improve as we move forward.

Dean Banks: All in all, a really good result on margin. I think we're very confident we've got a sustainable margin moving forward, and we'll continue to strive to improve as we move forward.

Speaker #1: Great, I appreciate the color. And then, a quick second, if I may, just on the battery storage opportunity. We've got, call it, between four and five gigawatts being built out across the NEM over the next 12 months.

Cameron Needham: Great. Appreciate the color. Then a quick second, if I may. Just on the battery storage opportunity. We've got, call it, between 4 and 5 gigawatts being built out across the NEM over the next 12 months. I appreciate you spoke a little bit about this at the Investor Day, but I guess just intrigued, given your existing capabilities, where exactly do you see Ventia participating in that spend? I guess maybe just a little bit of a mark-to-market in terms of what you're discussing with customers and what proportion of the work that you're seeing is recurring services versus some of the shorter duration construction work.

Speaker #1: I appreciate you spoke a little bit about this at the Investor Day, but I guess I'm just intrigued—given your existing capabilities, where exactly do you see Ventia sort of participating in that spend?

Speaker #1: And I guess maybe just a little bit of a mark-to-market in terms of what you're discussing with customers, and what proportion of the work that you're seeing is recurring services versus some of the shorter-duration construction work?

Speaker #2: Yeah, yeah. Look, I mean, first off, at the minute, it's quite minimal. So we've got the capability, we've demonstrated the capability, and we've delivered battery storage.

Dean Banks: Yeah. Look, I mean, for us at the minute, it's quite minimal. We've got the capability, we've demonstrated the capability, and we've delivered battery storage. But the market's still very transactional. People doing one project at a time. Whereas actually where Ventia really comes into its fore is when we see bigger opportunities with more strategic considerations around battery storage across geographies. So, we've got the capability, and we aim to try and work with partners on that. But I don't think in the short term we're going to see considerable margin or revenue drive from that. That said, I think in the future it will come. Of course, one of the points that you raised there was the question about when we start to see maintenance of those assets. I mean, clearly assets have got to be built before we can see revenue stream from them.

Speaker #2: But the market's still very transactional—people doing one project at a time—whereas, actually, where Ventia really comes to the fore is when we see bigger opportunities and more strategic considerations around battery storage across geographies.

Speaker #2: So we've got the capability, and we aim to try and work with partners on that. But I don't think, in the short term, we're going to see considerable margin or revenue drive from that.

Speaker #2: That said, I think in the future it will come. And, of course, one of the points that you raised there was the question about when we start to see maintenance of those assets.

Speaker #2: I mean, clearly assets have got to be built before we can see a revenue stream from them. And often, when they are built, there is a warranty period from the OEM as well.

Dean Banks: When they are built, there is a warranty period from the OEM as well. There is probably a bit of a lag to the opportunity. I think this whole transition around energy, battery storage, AI requirements, data, it is just growing and growing as a phenomenon. There is no doubt that the market opportunity is just going to come. I do not think it is probably short term. I think it is a bit more medium to long-term opportunity.

Speaker #2: So there's probably a bit of a lag to the opportunity, but I think this whole transition around energy, battery storage, AI requirements, and data is just growing and growing as a phenomenon.

Speaker #2: So there's no doubt that the market opportunity is going to come. But I don't think it's likely to be short term. I think it's a bit more of a medium- to long-term opportunity.

Speaker #1: Great, thanks very much for the color. I'll pass it on there. And, Dean, very best of luck for the future. Thanks.

Cameron Needham: Great. Thanks very much for the color. I will pass it on there. Dean, very best of luck for the future. Thanks.

Speaker #2: Thanks, Cameron.

Dean Banks: Thanks, Cameron.

Speaker #3: Thank you. And our next question today comes from Nicholas Ron with Morgan's. Please go ahead.

Operator 2: Thank you. Our next question today comes from Nicholas Roth with Morgans. Please go ahead.

Operator: Thank you. Our next question today comes from Nicholas Roth with Morgans. Please go ahead.

Speaker #4: Hi, Dan and Mark. Thanks for taking my questions, and congrats, Dan, on your time at Ventia. I know there are sort of swings and roundabouts, as Mark mentioned, but would you mind quantifying the gain or loss on the sale of PP&E?

Nicholas Roth: Hi, Dean and Mark. Thanks for taking my questions, and congrats, Dean, on your time at Ventia. I know there's sort of swings and roundabouts, as Mark mentioned, but would you mind quantifying the gain or loss on the sale of PP&E? It was a pretty big line in your cash flow, so kind of just keen to understand if there's any impact on earnings either way, please.

Nicholas Rawlinson: Hi, Dean and Mark. Thanks for taking my questions, and congrats, Dean, on your time at Ventia. I know there's sort of swings and roundabouts, as Mark mentioned, but would you mind quantifying the gain or loss on the sale of PP&E? It was a pretty big line in your cash flow, so kind of just keen to understand if there's any impact on earnings either way, please.

Speaker #4: It was a pretty big line in your cash flow, so I just wanted to understand if there's any impact on earnings either way, please.

Dean Banks: Nick, thank you for your comments. Thank you for your question. Sounds like a really difficult one, so I'm definitely handing this one over to Mark. Mark, over to you.

Speaker #2: Nick, thank you for your comments and for your question. It sounds like a really difficult one, so I'm definitely passing this one over to Mark.

Speaker #2: So Mark, over to you.

Speaker #4: Yeah, I don't think there was anything particularly unusual this period. We did invest in some rig assets, and we retired some older rig assets.

Mark Fleming: Yeah, I don't think there was anything particularly unusual this period. We did invest in some rigs assets, and we retired some older rig assets, so that's probably the biggest driver there. I wouldn't say that's a material item. Again, as you say, it's one of the things that you'll see from time to time as we recycle our capital.

Speaker #4: So that's probably the biggest driver there. But I wouldn't say that's a material item. And again, as you say, it's one of the things that you'll see from time to time as we recycle our capital.

Speaker #3: And look, investment in rigs

Dean Banks: The investment in rigs is good for us because that means growth. We're finding good sensibility about the way we depreciate that asset over a contract life as well. If we can have more investment in that space, I think it's good news for the business.

Speaker #2: is good for us because that means growth. And we're finding good sensibility about the way we depreciate that asset over a contract life as well.

Speaker #2: So, if we can have more investment in that space, I think it's good news for the business.

Speaker #4: Okay, that's helpful. Thank you. And just on the corporate cost scars—like, more than 25% on the PCP—could you just run us through how you managed to bring those costs down so materially, and how should we think about forecasting this line moving forward?

Nicholas Roth: Okay. That's helpful. Thank you. Just on the corporate costs, guys, down more than 25% on the PCP, could you just run us through how you managed to bring those costs down so materially, and how should we think about forecasting this line moving forward?

Nicholas Rawlinson: Okay. That's helpful. Thank you. Just on the corporate costs, guys, down more than 25% on the PCP, could you just run us through how you managed to bring those costs down so materially, and how should we think about forecasting this line moving forward?

Speaker #4: Yeah. Thanks, Nicholas. One of the other things that Dane mentioned was, in terms of one of the drivers, efficiency. And certainly, that has been a focus in the last 12 months.

Mark Fleming: Yeah. Thanks, Nicholas. One of the other things that Dean mentioned was, in terms of one of the drivers, is efficiency. Certainly, that has been a focus in the last 12 months. I mean, we've known that this Defence Base Services contract was going to reduce for some time now, and so we've been preparing in terms of our cost base. That includes both looking at the DSI business, but also looking at our corporate functions. So we've done quite a lot of work in right-sizing our cost base for the reduced revenue, and that's what you're really seeing coming through there. So looking forward, yes, I do think that what you see in the H1 is a reasonable base for going forward.

Speaker #4: I mean, we've known that this defense-based contract was going to reduce for some time now, so we've been preparing in terms of our cost base.

Speaker #4: And that includes both looking at the DSI business, but also looking at our corporate functions. And so we've done quite a lot of work in right-sizing our cost base for the reduced revenue.

Speaker #4: And that's what you're really seeing coming through there. So, looking forward, yes, I do think that what you see in the first half is a reasonable base for going forward.

Speaker #4: Great, that's it from me. Thanks, guys, and congrats again, Dane.

Nicholas Roth: Great. That's it from me. Thanks, guys, and congrats again, Dean.

Nicholas Rawlinson: Great. That's it from me. Thanks, guys, and congrats again, Dean.

Speaker #2: Thanks, Nick.

Dean Banks: Thanks, Nick.

Speaker #3: And our next question today comes from Nathan Riley at UBS. Please go ahead.

Operator 2: Our next question today comes from Nathan Reilly at UBS. Please go ahead.

Operator: Our next question today comes from Nathan Reilly at UBS. Please go ahead.

Speaker #5: Good morning. Thanks for taking my question. And Dean, congrats and all the best. My question actually was going to be for Mark Russell. I don't know if he's around to take questions, but maybe in his absence, maybe one for Mark Fleming.

Nathan Reilly: Good morning. Thanks for taking my question. Dean, congrats and all the best. My question actually was going to be for Mark Ralston. I do not know if he is around to take questions, but maybe in his absence, maybe one for Mark Fleming. I am just curious, a bit of an update in terms of current thinking on capital deployment opportunities, particularly in terms of M&A strategy to support some of your strategic growth initiatives, and just, I guess, capital allocation decisions going forward, obviously noting the upsize to the buyback.

Speaker #5: I'm just curious if there's an update in terms of current thinking on capital deployment opportunities, particularly in terms of M&A strategy to support some of your strategic growth initiatives.

Speaker #5: And just, I guess, capital allocation decisions going forward, obviously noting the upsize to the buyback.

Speaker #2: Yeah, cool. Nathan, great question. And I will say that Mark Ralston is here, and that's part of the transition, but Mark Fleming's probably the most appropriate person to answer the question.

Dean Banks: Yeah, look, Nathan, great question, and I will say that Mark Ralston is here, and that is part of the transition. But Mark Fleming is probably the most appropriate person to answer the question, so I will hand that to him.

Speaker #2: So, I'll hand that to him.

Speaker #4: Yeah, look, I think the best—obviously Mark will have his own views on strategy. I don't expect that it'll be materially different. But the way we think about capital allocation is really around having that balance that's set out on the capital allocation framework slide.

Mark Fleming: Yeah, look, I think the best. Obviously, Mark will have his own views on strategy. I do not expect it will be materially different. But the way we think about capital allocation is really around having that balance that is set out on the capital allocation framework slide. So we want to maintain our financial strength and flexibility while leaving room for investment to grow and also being able to return capital to shareholders. So I do not see it as an either/or decision. It is really about doing all three of those things in the right balance. We do not feel capital constrained. Our net debt to EBITDA is 1.4x, which is still below the middle of our range. If there are good investment opportunities that have really good returns on investment, then we are very happy to pursue those.

Speaker #4: So, we want to maintain our financial strength and flexibility, while leaving room for investment to grow and also being able to return capital to shareholders.

Speaker #4: So I don't see it as an either-or decision. It's really about doing all three of those things in the right balance. We don't feel capital constrained, and that debt to EBITDA is 1.4 times, which is still below the middle of our range.

Speaker #4: And if there are good investment opportunities that have really good returns on investment, then we're very happy to pursue those. That would be the case whether you're talking about a capital expenditure opportunity, like the rigs and wells that we spoke about, or whether you're talking about an M&A opportunity.

Mark Fleming: That would be the case whether you are talking about a CapEx opportunity like the rigs and wells we spoke about, or whether you are talking about an M&A opportunity. In relation to M&A, we have been very disciplined, as you all know, over the last five years, and we have really focused primarily on organic growth. Where we have done acquisitions, it has been in adjacent areas where we are building a capability or a customer relationship or a geography that we do not already have. I suspect that will continue going forward. Having said that, as I said, we do have capacity for growth.

Speaker #4: In relation to M&A, we have been very disciplined, as you all know, over the last five years. And we've really focused primarily on organic growth.

Speaker #4: And where we've done acquisitions, it's been in adjacent areas where we're building a capability, a customer relationship, or a geography that we don't already have.

Speaker #4: And I suspect that will continue going forward. But having said that, as I mentioned, we do have capacity for growth.

Speaker #2: Well, the two things I'd add, Nathan: one is, I think in this period, hopefully it's seen as a positive that we've taken two actions.

Dean Banks: Well, there are two things I would add, Nathan. One is, I think in this period, hopefully it is seen as a positive that we have taken two actions. One is we are now 100% frank in our dividend, which has happened progressively quicker than we anticipated due to tax paid in Australia. Secondly, we have announced a further AUD 50 million of share buyback, which hopefully is positive as well. Just in terms of your question to Mark Ralston, he is certainly not dodging it. He is very happy to talk about his future outlook and his considerations. Maybe we take the opportunity to do that later today in the analyst call. I am sure other people will ask him questions over the roadshow over the coming days.

Speaker #2: One is we're now 100% franked in our dividend, which has happened progressively quicker than we anticipated due to tax paid in Australia. And secondly, we've announced a further $50 million share buyback, which hopefully is positive as well.

Speaker #2: And just in terms of your question to Mark Ralston, he's certainly not dodging it. He's very happy to talk about his future outlook and his considerations.

Speaker #2: And maybe we take the opportunity to do that later today in the analyst call. I'm sure other people will be asking questions over the roadshow in the coming days.

Speaker #5: Not a problem. Thanks very much.

Nathan Reilly: Not a problem. Thanks very much.

Speaker #2: Thanks, Nathan.

Dean Banks: Thanks, Nathan.

Speaker #3: Thank you. And our next question today comes from Amanda Kelly at Barrenjoey Capital Partners. Please go ahead.

Operator 2: Thank you. Our next question today comes from Amanda Kelly at Barrenjoey Capital Partners. Please go ahead.

Operator: Thank you. Our next question today comes from Amanda Kelly at Barrenjoey Capital Partners. Please go ahead.

Amanda Kelly: Hey, team. Morning. I am just wondering if we can talk about how the mobilization is progressing on some of the recent transport wins you have had, like those big maintenance contracts for Grampians and East Metro and stuff, just how you are seeing those performing in the H2.

Speaker #6: Hey, team. Good morning. I'm just wondering if we can talk about how the mobilization is progressing on some of the recent transport wins you've had, like those big maintenance contracts for Grampians and East Metro and stuff.

Speaker #6: Just how you're seeing those performing in the second half.

Speaker #2: Yeah, so look, I mean, first of all, great wins for the business. I mean, really starting to create a mass now in that Victoria region.

Dean Banks: Yeah. So look, I mean, first of all, great wins for the business. I mean, really starting to create a mass now in that Victoria region. So two big wins on the two regions you have talked about. Also in August, we announced the intelligent transport systems. Clearly, on the two for the Eastern Metropolitan and Grampians, we inherited a workforce. We are very pleased with the workforce we have inherited, some really high-quality individuals. The mobilization has gone really well. Clearly, it is going to take time to ramp up. It is still a relatively new contract for Ventia. But the feedback as well from the people we have inherited is they are very happy to be part of the Ventia brand moving forward and enjoying it. So at this point in time, everything going really well.

Speaker #2: So, two big wins on the two regions you've talked about, but also in August, we announced the intelligent transport systems. Clearly, on the two, for the Eastern Metropolitan and Grampians, we inherited a workforce.

Speaker #2: We're very pleased with the workforce we've inherited—some really high-quality individuals. And the mobilization has gone really well. I mean, clearly, it's going to take time to ramp up.

Speaker #2: It's still a relatively new contract for Ventia, but the feedback as well from the people we've inherited is they're very happy to be part of the Ventia brand moving forward and are enjoying it.

Speaker #2: So at this point in time, everything is going really well. Clearly, like any contract that's new, we've got to build the relationships, build the rapport, and the understanding of the network.

Dean Banks: Clearly, like any contract that is new, we have got to build the relationships, build the rapport, and the understanding of the network. But I think we have started really, really well. The transport team, I think in this six months, have had a stellar period. So, I am really pleased with how our transport business, even though it is a niche business, is performing. I will probably take the opportunity, Amanda, as well just to reiterate that the outlook for transport is probably a bit different to some of the others, because we have still got contracts that we have already secured to commence on Western Harbour Tunnel here in Sydney. We have got North East Link in Melbourne, and we have got Torrens to Darlington in South Australia. So from our perspective, the outlook for the transport business looks really good.

Speaker #2: But I think we've started really, really well, and the Transport team, I think, in these six months have had a stellar period. So, really pleased with our Transport business. Even though it's a niche business, it's performing.

Speaker #2: And I'll probably take the opportunity, Amanda, as well, just to reiterate that the outlook for transport is probably a bit different to some of the others.

Speaker #2: Because we've still got contracts that we've already secured to commence on Western Harbor Tunnel here in Sydney, we've got North East Link in Melbourne, and we've got Torrens to Darlington in Western South Australia.

Speaker #2: So, from our perspective, the outlook for the transport business looks really good.

Speaker #6: Great, thank you. I'm also just wondering if you can provide some color on how you're expecting telco volumes in the second half to hold.

Amanda Kelly: Great. Thank you. I am also just wondering if you can provide some color on how you are expecting Telco volumes in the H2 to hold. I think the margin was still pretty solid this half, so would you say that there is upside there if the volumes can move higher?

Speaker #6: I think the margin was still pretty solid this half. So, would you say that there's upside there if the volumes can move higher?

Speaker #2: The simple answer is yes, but it's probably a bit more complicated than that, as ever. In that, in the second half of 2025, we did just over $900 million of revenue.

Dean Banks: The simple answer is yes, but it is probably a bit more complicated than that, as ever. In the H2 of 2025, we did just over AUD 900 million of revenue, and we thought that would probably repeat through both halves of 2026. So we are a little bit down, in H1 versus H2. We are obviously up, year-on-year in comparison. But it has probably been a little bit softer in the H1 than we anticipated. There is no doubt there is a volume of work there, and we have got long tenure contracts, so we are in a good place. I do not think there is anything secret here in nbn have ambition. The difficult to connect and try and get through that work as quickly as possible. We are certainly working with them in a collaborative manner to look at how we can advance those works, which ultimately will drive revenue as well.

Speaker #2: And we thought that would probably repeat through both halves of 2026. So we're a little bit down in H1 versus H2. We're obviously up year-on-year in comparison.

Speaker #2: But it's probably been a little bit softer in the first half than we anticipated. There's no doubt there's a volume of work there, and we've got long-tenure contracts.

Speaker #2: So we're in a good place. I don't think there's anything secret here in MBN to have ambition on. The difficult thing is to connect, to try and get through that work as quickly as possible.

Speaker #2: And we're certainly working with them in a collaborative manner to look at how we can advance those works, which ultimately will drive revenue as well.

Speaker #2: So for all the big operators, we're in a good place. And we also secured some contracts with Optus that give us further outlook in the telecommunication sector going forward.

Dean Banks: For all the big operators, we are in a good place. We also secured some contracts with Optus that give us further outlook in the telecommunications sector going forward. I certainly wouldn't expect it to go down. We feel confident that it will go up. But these volumes are a bit variable. But we are probably a little bit softer in the H1 than we anticipated at the outset of the year.

Speaker #2: So I certainly wouldn't expect it to go down. We feel confident that it'll go up, but these volumes are a bit variable. We're probably a little bit softer in the first half than we anticipated at the outset of the year.

Speaker #6: Thanks, Dane.

Amanda Kelly: Thanks, Dean.

Speaker #2: Yeah.

Speaker #3: Thank you. And our next question today comes from John Purteau at Macquarie. Please go ahead.

Operator 2: Thank you. Our next question today comes from John Purtell at Macquarie. Please go ahead.

Operator: Thank you. Our next question today comes from John Purtell at Macquarie. Please go ahead.

Speaker #5: Good morning, Dane and Mark. And Dane, I'd like to echo the earlier comments—congratulations on what you've achieved at Ventia, and all the best going forward.

John Purtell: Good morning, Dean and Mark. Dean, I would like to echo the earlier comments. Congrats on what you have achieved at Ventia, and all the best going forward. Look, a couple of questions, please. Just in terms of the question on NPAT growth in H2. It looks to be implicit from your guidance and your revenue comments just before, but are you expecting growth to accelerate in H2 as opposed to H1, and what are the key drivers of that? Thank you.

Speaker #5: Look, a couple of questions, please. Just in terms of the question on MPATA growth in the second half, I mean, it looks to be implicit from your guidance and your revenue comments just before.

Speaker #5: But are you expecting growth to accelerate in the second half versus the first? And what are the key drivers of that? Thank you.

Speaker #2: Thank you for your kind words and your question. I'm going to pass it to Mark.

Dean Banks: Thank you for your kind words and your question. I am going to pass you to Mark.

Speaker #5: Sure.

Mark Fleming: Sure. Well, look, we feel good about H2. In H1, we have obviously mobilized the Defence Base Services contract. We have mobilized the Defence Clothing Services contract, and some housing and communities contracts. All of those should see growth into H2. The IS business, we expect to continue to grow. The transport business with those new contract wins that Dean mentioned also looking good for growth. Then, of course, we have got the seven contracts that we have announced we have won in H1. All of that is positive. I think the only swing factor is the telco business. As Dean said, a little bit of softness there in H1, and whether that continues into H2 is probably the question mark.

Speaker #4: Yeah. Look, we feel good about the second half. So, in the first half, we've obviously mobilized the defense-based services contract. We've mobilized the defense clothing contract.

Speaker #4: And some Housing and Communities contracts. And all of those should see growth into the second half. The IS business, we expect to continue to grow.

Speaker #4: The Transport business, with those new contract wins that Dean mentioned, is also looking good for growth. And then, of course, we've got the seven contracts that we've announced we've won in the first half.

Speaker #4: So, all of that is positive. I think the only swing factor is the telco business. As Dean said, there's a little bit of softness there in the first half, and whether that continues into the second half is probably the question mark.

Speaker #4: But apart from that, we feel as though we've got a really solid base to build on for the second half. And as I said in the speech, we think that the first half is the bottom for us in terms of revenue.

Mark Fleming: But apart from that, we feel as though we've got a really solid base to build on for the H2. As I've said in the speech, we think that the H1 is the bottom for us in terms of revenue, and we should see growth from that base going forward.

Speaker #4: And we should see growth from that base going forward.

Speaker #2: And John, I think we said this in previous periods, but we see 2026 as a transition year. With some of the changes to contracts, we probably expected the two halves to be slightly more profound than previous, but it's probably now running more like previous years, which Mark amplified earlier.

Dean Banks: And John, I think we said this in previous periods, but we see 2026 as a transition year, with some of the changes to contracts. We probably expected the two halves to be slightly more profound than previous, but it's probably now running more like previous years, which Mark amplified earlier. The good thing, though, in this business that we always talk about is we've got a really good insight to the revenue secured, and therefore, we've got a good insight to what the H2 is going to bring.

Speaker #2: The good thing, though, in this business that we always talk about is we've got a really good insight into the revenue secured, and therefore, we've got a good insight into what the second half is going to bring.

Speaker #5: Thank you. And just a final question, please. The warranty and contract claims provision was down in the period. What drove that reduction? Thank you.

John Purtell: Thank you. And just a final question, please. The warranty and contract claims provision was down in the period. What drove that reduction? Thank you.

Speaker #4: Yeah. Look, I think it's been a really good half in terms of cleaning up a lot of our legacy commercial claims. One of the ones, for example, that we resolved this half was Gateway.

Mark Fleming: Well, look, I think it's been a really good half in terms of cleaning up a lot of our legacy commercial claims. One of the ones, for example, that we resolved this half was Gateway. And you probably remember, John, back at the IPO, there was a claim in excess of AUD 60 million in relation to Gateway. Well, that's now resolved. And a number of other commercial issues and matters were also resolved during the half. So that's what's really driven that. And if I put that together with last year. So last year, we locked in a lot of our business through long-term contracts that you're well aware of. This half, we've cleaned up most of our commercial claims. So we are well positioned going forward and have really de-risked the business through those things.

Speaker #4: And you probably remember, John, back at the IPO, there was a claim in excess of $60 million in relation to Gateway. That's now resolved.

Speaker #4: And a number of other commercial issues and matters were also resolved during the half. So that's what's really driven that. And if I put that together with last year—so last year we locked in a lot of our business through long-term contracts.

Speaker #4: That you're well aware of. This half, we've cleaned up most of our commercial claims, so we are well positioned going forward and have really de-risked the business through those things.

Speaker #2: And John, I'd probably just clarify one thing. Although there was a claim of $64 million, we never thought it was going to be at that value.

Dean Banks: John, I will probably just clarify one thing, that although there was a claim of AUD 64 million, we never thought it was going to be at that value, and we certainly never released any provisions anywhere near that value. I think it has come out probably as we expected. But these things take time, and as Mark quite rightly articulated, we really de-risked the business over the last 12, 18 months, which means it is really about trading now going forward rather than binary matters from a commercial perspective of that nature.

Speaker #2: And we certainly never released any provisions anywhere near that value. So, I think it's come out probably as we expected. But these things take time.

Speaker #2: And as Mark quite rightly articulated, we really de-risked the business over the last 12–18 months, which means it is really about trading now going forward rather than binary matters from a commercial perspective of that nature.

Speaker #5: Thank you.

Mark Fleming: Thank you.

John Purtell: Thank you.

Speaker #3: Yeah.

Dean Banks: Yeah. Thanks, John.

Speaker #2: Thanks, John.

Operator 2: Thank you. Our next question today comes from Chenny Wang at Morgan Stanley. Please go ahead.

Operator: Thank you. Our next question today comes from Chenny Wang at Morgan Stanley. Please go ahead.

Speaker #3: Thank you. And our next question today comes from Cheney Wong at Morgan Stanley. Please go ahead.

Speaker #5: Hi, guys. Thanks for taking my question. I just had one—just, I guess, regarding your business. I was interested in better understanding if there are any additional major contracts that are ramping down or finishing, let's say, in the second half of '26 and 2027.

Chenny Wang: Hi, guys. Thanks for taking my question. I just had one. Just, I guess, regarding your business. I was interested in just better understanding if there is any additional major contracts that is ramping down or finishing, let us say, in the H2 2026 and 2027. Obviously, you talked to some of the new contract wins and mobilizations and ramp ups. Just interested on the other side as well.

Speaker #5: Obviously, you talked to some of the new contract wins and mobilizations, and ramp-ups, but just interested on the other side as well.

Speaker #2: Yeah. Look, great question. I mean, first of all, I'd say that we've talked about on this call the fact that we've fully de-risked the business.

Dean Banks: Yeah. Look, great question. First of all, I would say that we have talked about on this call the fact that we fully de-risked the business. Our really big material contracts have been renewed over the last sort of 12, 18 months or so. So we have a much longer tenure now in terms of contract term, which has gone up to 6.2 years, which gives us stability. Clearly now, our focus moves to growth. Now we start to grow the top line of the business. It is always a bit difficult of what is in the public domain. The one that is in the public domain is Auckland Council, which is a contract that has already started the procurement cycle. It should be completed in 2026. Invariably, though, these things often take longer, so it may be that it actually gets announced in 2027.

Speaker #2: Our really big material contracts have been removed or renewed over the last twelve to eighteen months or so. So we have a much longer tenure now in terms of contract term, which has gone up to 6.2 years. That gives us stability.

Speaker #2: Clearly, now, our focus moves to growth. And now we start to grow the top line of the business. It's always a bit difficult with what's in the public domain.

Speaker #2: The one that is in the public domain is Auckland Council, which is a contract that's already started the procurement cycle. It should be completed in 2026.

Speaker #2: Invariably, though, these things often take longer, so it may be that it actually gets announced in 2027. Apart from that, what I can probably point you towards is the fact that we've said, over the five years we've been in the market.

Dean Banks: Apart from that, what I can probably point you towards is the fact that we have said over the five years we have been in the market, we have announced about eight contracts per annum. So I think we are going to be around that run rate again in 2027 with contracts that are up for renewal. Albeit, I think the majority of them will be lower value rather than the big billion-dollar contracts. We won a number of billion-dollar contracts last year, and if you look back historically, the last time we won a billion-dollar contract was 2021. So it is not like they come around on regular intervals. It is more in the AUD 100 million you will see renewals in 2027. As they come in the public domain, clearly, we will talk about them more openly.

Speaker #2: We've announced about eight contracts per annum, so I think we're going to be around that run rate again in 2027, with contracts that are up for renewal.

Speaker #2: Albeit, I think the majority of them will be lower value rather than the big billion-dollar contracts. We won a number of billion-dollar contracts last year.

Speaker #2: And if you look back historically, the last time we won a billion-dollar contract was 2021. So it's not like they come around at regular intervals.

Speaker #2: It's more in the $100 million range. You'll see renewals in 2027, and as they come into the public domain, clearly we'll talk about them more openly.

Speaker #5: Perfect. Thank you.

Chenny Wang: Perfect. Thank you.

Speaker #2: Thank you very much.

Dean Banks: Thank you very much.

Speaker #3: Thank you. I don't have any further questions at this time, so I'll now hand back to Mr. Banks for closing remarks.

Operator 2: Thank you. There are no further questions at this time, so I will now hand back to Mr. Banks for closing remarks.

Operator: Thank you. There are no further questions at this time, so I will now hand back to Mr. Banks for closing remarks.

Speaker #2: Rocco, thank you. And thank you to all the analysts for your support. Thank you for taking the time to listen to our update today.

Dean Banks: Rocco, thank you, and thank you to all the analysts for your support. Thank you for affording us time to listen to our update today and your questions. We look forward to continuing to share our story over the coming days. We very much look forward to introducing Mark Ralston to the team, and I am sure he is going to be very successful and help take the business to the next level. From me, thank you and goodbye.

Speaker #2: And your questions—we look forward to continuing to share our story over the coming days. We very much look forward to introducing Mark Ralston to the team. I'm sure he's going to be very successful and help take the business to the next level.

Speaker #2: So, from me, thank you and goodbye.

Operator 2: Thank you, sir. That does conclude our conference.

Operator: Thank you, sir. That does conclude our conference.