Update shared on 16 Nov 2025
Fair value Increased 1.11%Analysts have raised their price target for Downer EDI from $7.28 to $7.36. This change is based on updated expectations in fair value and discount rate, while forecasts for revenue growth and profit margin remain stable.
What's in the News
- Secured a major new contract with the Australian Department of Defence valued at approximately $3.05 billion for base and estate services. This contract will commence in February 2026 and may run for up to 10 years (Key Developments).
- Awarded a 10-year contract by Urban Utilities to deliver water and wastewater infrastructure in South East Queensland, starting in September 2025 (Key Developments).
- Declared a fully franked final ordinary dividend of AUD 0.141 for the six months ended June 30, 2025, payable on October 2, 2025 (Key Developments).
- Announced a share repurchase program to buy back up to 33,578,684 shares, representing 5% of its outstanding shares, with the program expiring on June 30, 2026 (Key Developments).
- Held an Analyst/Investor Day to update the market on company developments (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from A$7.28 to A$7.36.
- Discount Rate increased modestly from 6.98% to 7.06%.
- Revenue Growth forecast remains essentially unchanged at 3.20%.
- Net Profit Margin expectation is stable at approximately 3.18%.
- Future P/E ratio has increased marginally from 16.36x to 16.58x.
Disclaimer
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