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Downer EDI Limited
(Sydney:DOW)
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Rating:59Neutral
Price Target:
AU$7.00
▲(4.17% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by improving financial performance (better profitability, moderating leverage, and solid cash generation), but it is held back by weak technical momentum (price below key moving averages with negative MACD) and only mixed valuation support (mid-level P/E with a solid dividend yield).
Positive Factors
Profitability Recovery
The return to positive earnings and higher operating margins indicates improved execution and cost control. If sustained, this recovery can strengthen internal funding capacity and improve resilience across Downer’s contracted infrastructure and services operations.
Negative Factors
Persistent Revenue Decline
Multi-year revenue contraction signals weaker volume, project activity or contract conversion and limits operating leverage. Without renewed top-line growth, Downer may have less ability to absorb fixed costs and sustain its profitability recovery over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability Recovery
The return to positive earnings and higher operating margins indicates improved execution and cost control. If sustained, this recovery can strengthen internal funding capacity and improve resilience across Downer’s contracted infrastructure and services operations.
Read all positive factors
Downer EDI Limited (DOW) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$4.42B
Dividend Yield3.96%
Average Volume (3M)1.75M
Price to Earnings (P/E)20.4
Beta (1Y)0.93
Revenue Growth-7.37%
EPS Growth59.81%
CountryAU
Employees22,800
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.33
Shares Outstanding659,010,700
10 Day Avg. Volume1,174,070
30 Day Avg. Volume1,745,792
Financial Highlights & Ratios
PEG Ratio0.38
Price to Book (P/B)2.73
Price to Sales (P/S)0.55
P/FCF Ratio13.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$7.93Price Target Upside17.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.48
Revenue Forecast (FY)AU$10.33B
Downer EDI Limited Business Overview & Revenue Model
Company Description
Downer EDI Limited, an Australian-headquartered firm established in 1989, delivers comprehensive facilities management solutions across Australia, New Zealand, and global markets. The company's Transport division specializes in road infrastructure...
How the Company Makes Money
Downer makes money primarily by delivering contracted services and projects for government and private-sector clients, earning revenue under a mix of project-based and recurring service/maintenance arrangements.
Key revenue streams include:
1) Pr...
Downer EDI Limited Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
67
Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.70B | 10.48B | 10.97B | 11.64B | 10.95B |
| Gross Profit | 1.34B | 9.04B | 1.28B | 1.28B | 1.21B |
| EBITDA | 680.80M | 616.00M | 512.70M | 60.70M | 645.80M |
| Net Income | 216.50M | 136.70M | 69.10M | -385.70M | 151.60M |
Balance Sheet | |||||
| Total Assets | 6.69B | 6.48B | 7.06B | 7.48B | 7.64B |
| Cash, Cash Equivalents and Short-Term Investments | 766.40M | 839.70M | 856.70M | 889.10M | 738.50M |
| Total Debt | 1.38B | 1.54B | 1.81B | 2.13B | 1.91B |
| Total Liabilities | 4.55B | 4.24B | 4.80B | 5.19B | 4.83B |
| Stockholders Equity | 1.96B | 2.06B | 2.08B | 2.29B | 2.81B |
Cash Flow | |||||
| Free Cash Flow | 384.50M | 439.60M | 397.80M | 55.20M | 215.60M |
| Operating Cash Flow | 503.30M | 562.50M | 544.10M | 318.20M | 495.40M |
| Investing Cash Flow | -75.70M | -29.10M | -29.30M | -86.70M | 38.40M |
| Financing Cash Flow | -479.90M | -536.50M | -566.60M | -80.70M | -600.20M |
Downer EDI Limited Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$2.86B | 22.71 | 22.77% | 2.98% | 29.43% | 50.05% | |
70 Outperform | AU$2.42B | 33.28 | 13.26% | 1.73% | 26.61% | 44.44% | |
67 Neutral | AU$3.57B | 22.97 | 23.03% | 3.20% | 31.39% | 451.49% | |
66 Neutral | AU$1.77B | 32.81 | 27.29% | 0.61% | 70.52% | 35.44% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | AU$4.42B | 20.42 | 11.01% | 3.39% | -7.37% | 59.81% | |
54 Neutral | AU$2.09B | 26.48 | 8.79% | 1.31% | 34.24% | 1.87% |
* Industrials Sector Average
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Downer EDI Limited
6.71
-0.29
-4.13%
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Downer EDI Limited Corporate Events
Downer secures $900m in Australasian water and energy contracts
Aug 17, 2026
Downer EDI Limited has secured more than $900 million in contract renewals and extensions in its Energy Utilities division across Australia and New Zealand, underscoring sustained demand from utility asset owners for its specialist capabilities. ...
Downer EDI reports lapse of 70,873 performance rights
Jul 9, 2026
Downer EDI Limited has reported the lapse of 70,873 performance rights identified under the ASX code DOWAC, following the failure or impossibility of satisfying the associated conditions by 1 July 2026. The cessation of these conditional rights sl...
Downer EDI cancels shares under on‑market buy‑back
Jun 30, 2026
Downer EDI Limited, listed on the ASX under the ticker DOW, operates in the industrial and services sector, providing engineering, construction, and asset management services across infrastructure and related markets. The company’s ordinary ...
Downer EDI Reports Ongoing Progress in On‑Market Share Buy-Back
Jun 25, 2026
Downer EDI Limited has issued an updated notice confirming daily progress of its on‑market share buy-back program in its DOW ordinary fully paid securities. The company reported that a total of 12,516,846 shares had been repurchased before t...
Downer EDI Continues On-Market Share Buy-Back Program
Jun 23, 2026
Downer EDI Limited has continued its on-market share buy-back program, confirming that its ordinary fully paid shares under the ASX code DOW remain the subject of ongoing repurchases. The company is using this mechanism as part of its broader capi...
Downer EDI Reports Daily Progress on Ongoing On‑Market Share Buy‑Back
Jun 22, 2026
Downer EDI Limited has updated the market on progress under its on‑market share buy‑back program for its ordinary fully paid shares. The company reported that, as of the previous day, it had repurchased 12,438,888 shares in total since...
Downer EDI Cancels Over 530,000 Shares in On-Market Buy-Back
Jun 18, 2026
Downer EDI Limited has cancelled 531,551 fully paid ordinary shares as part of an on-market buy-back completed on 29 May 2026. The reduction in issued capital, disclosed via an Appendix 3H filing, marginally enhances remaining shareholders’ ...
Downer EDI Reports Continued Progress in On-Market Share Buy-Back
Jun 18, 2026
Downer EDI Limited has issued an updated notification to the ASX confirming ongoing activity under its on-market share buy-back program for its ordinary fully paid shares. The latest daily disclosure reports that, as of the previous day, the compa...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
Jun 9, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily report, dated 10 June 2026, records that a total of 12,223,533 shares ha...
Downer EDI Reports Daily Progress on On-Market Share Buy-Back
Jun 8, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back of ordinary fully paid shares under its previously announced program. The filing confirms the company has repurchased a cumulative 12...
Downer EDI Updates Market on Ongoing Daily Share Buy-Back
Jun 4, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The filing confirms that the company continues to execute daily buy-backs as part of a ca...
Downer wins $310m Transurban Sydney road maintenance contracts
Jun 4, 2026
Downer EDI Limited has secured contracts of up to nine years, worth about $310 million, to provide road maintenance and 24/7 incident response services on Transurban’s northern Sydney toll road assets, including NorthConnex, the M2 Motorway ...
Downer EDI Provides Daily Update on Ongoing Share Buy-Back
Jun 1, 2026
Downer EDI Limited has provided an updated notification to the ASX on its ongoing on-market share buy-back program for its ordinary fully paid shares. The company reported that, as at the latest update dated 2 June 2026, it had repurchased a total...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 31, 2026
Downer EDI Limited has provided an updated daily notification on its ongoing on-market share buy-back program for its ordinary fully paid shares listed under the code DOW. The latest filing notes that a total of 11,907,337 shares had been repurcha...
Downer EDI Cancels Nearly 2 Million Shares in On-Market Buy-Back
May 28, 2026
Downer EDI Limited has cancelled 1,968,411 ordinary fully paid shares as part of an on-market buy-back completed on May 4, 2026. The reduction in issued capital is expected to marginally enhance earnings per share and reflects ongoing capital mana...
Downer EDI Continues Daily On‑Market Share Buy‑Back
May 28, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest filing reports that, as of 29 May 2026, the company had repurchased a total of...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 27, 2026
Downer EDI Limited has provided an updated notification to the Australian Securities Exchange confirming the ongoing execution of its on-market share buy-back program for ordinary fully paid shares under the code DOW. The update, dated 28 May 2026...
Downer EDI Issues New Tranche of Unquoted Performance Rights
May 26, 2026
Downer EDI Limited has notified the market of the issue of 114,599 unquoted performance rights under its employee incentive scheme, effective 17 April 2026. The rights, which will not be quoted on the ASX, form part of the company’s broader ...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 25, 2026
Downer EDI Limited has provided an updated notification to the market regarding its ongoing on-market share buy-back program for its ordinary fully paid shares. The latest daily update, dated 26 May 2026, confirms that a total of 11,578,595 securi...
Downer EDI Updates Market on Ongoing On‑Market Share Buy‑Back
May 24, 2026
Downer EDI Limited has provided an update on its on-market share buy-back, confirming that it is repurchasing its ordinary fully paid shares under an existing program first notified in August 2025. The company reported that a total of 11,482,563 s...
Downer EDI Continues On‑Market Share Buy‑Back With Daily Update
May 22, 2026
Downer EDI Limited has provided an update on its on‑market share buy‑back, confirming that it repurchased 167,787 ordinary fully paid shares on the previous trading day. This lifts the total number of shares bought back under the curre...
Downer EDI Updates Market on Progress of On-Market Share Buy-Back
May 21, 2026
Downer EDI Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for its ordinary fully paid shares under code DOW. The latest daily disclosure shows that, as of the previous day, the compan...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.