OPERATIONAL SERVICESSanctions Clear

Downer Group

downergroup.comUpdated Mar 18, 2026Quality: 100/100

Strategic Intent

Downer Group is a leading provider of integrated urban services in Australia and New Zealand, specializing in the design, construction, and maintenance of transport, utilities, and facilities management infrastructure.

Key Market Signals

2026-03: Cancellation of 1.36 million ordinary shares as part of the $260 million capital management program.
2026-03: Continued execution of daily on-market share buy-back transactions.
2026-02: Commencement of the $3.05 billion Australian Department of Defence Property and Asset Services (PAS) contract.
2026-02: Reporting of 29.8% statutory NPAT growth and 4.6% EBITA margin in H1 FY26 results.
2026-02: Appointment of industry veteran Doug Moss to lead the Transport & Infrastructure division.

Financial Health

Reported statutory NPAT of $98.0 million for H1 FY26 (ended 31 December 2025), a 29.8% increase over the prior corresponding period (source: https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=DOW&timeframe=D&period=W)
Underlying EBITA increased 11.2% to $227.1 million in H1 FY26, with EBITA margin expanding to 4.6% (source: https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=DOW&timeframe=D&period=W)
Net debt to EBITDA improved to 0.8x as of 31 December 2025, supported by $68.7 million in proceeds from the divestment of Keolis Downer (source: https://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=DOW&timeframe=D&period=W)

Impact & Compliance

Social ImpactModern Slavery Statement (2025)Sector Risk: highScope 3: NONETHIRD_PARTY_ASSURED

Legal & Risks

Downer is currently defending a civil cartel proceeding filed by the ACCC regarding historical Defence maintenance contracts and an ongoing shareholder class action related to 2022/23 earnings guidance and accounting irregularities.

Forensic Audit — 8 findings

Ongoing shareholder class action alleges misleading conduct and continuous disclosure breaches related to overstated ear...
ACCC has commenced civil proceedings against subsidiary Spotless for alleged historical anti-competitive conduct related...
A history of industrial disputes, including recent actions in late 2025 and proposed workforce reductions in 2024, indic...

+ 5 more findings

Classifications

OPERATIONAL SERVICES (90%)PLANT & INFRASTRUCTURE (80%)

Proprietary Analysis

Proprietary Analysis — available with full access

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