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Perenti Global
(Sydney:PRN)
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Rating:67Neutral
Price Target:
AU$2.50
▲(5.04% Upside)
Action:Downgraded
Date:08/25/26
The score is driven primarily by improving fundamentals and a strong, positive earnings-call outlook (guidance supported by large work-in-hand, pipeline, and deleveraging), complemented by constructive technical momentum. These positives are tempered by relatively high valuation (P/E ~26.5) and mixed recent financial quality signals, particularly volatile free cash flow and some 2026 revenue/earnings softening.
Positive Factors
Large contracted backlog and tender pipeline
The substantial contracted backlog provides revenue visibility, while the large tender pipeline supports future growth. Rising copper opportunities and exposure to Australia and North America may improve portfolio quality and extend demand across multiple commodities.
Negative Factors
Weakening revenue and net income momentum
Recent top-line and earnings contraction reduces visibility despite management’s positive outlook. Project completions and portfolio changes can leave revenue vulnerable to timing gaps, while lower earnings may limit the pace of deleveraging and shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Large contracted backlog and tender pipeline
The substantial contracted backlog provides revenue visibility, while the large tender pipeline supports future growth. Rising copper opportunities and exposure to Australia and North America may improve portfolio quality and extend demand across multiple commodities.
Read all positive factors
Perenti Global (PRN) vs. iShares MSCI Australia ETF (EWA)
Market Cap
AU$2.20B
Dividend Yield3.19%
Average Volume (3M)3.12M
Price to Earnings (P/E)26.1
Beta (1Y)1.40
Revenue Growth-4.34%
EPS Growth-31.42%
CountryAU
Employees10,000
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.09
Shares Outstanding934,800,350
10 Day Avg. Volume3,128,554
30 Day Avg. Volume3,119,379
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)1.19
Price to Sales (P/S)0.63
P/FCF Ratio22.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
AU$2.82Price Target Upside18.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.21
Revenue Forecast (FY)AU$3.52B
Perenti Global Business Overview & Revenue Model
Company Description
Perenti Limited operates as a mining services company worldwide. The company operates through Contract Mining, Drilling Services, and Mining and Technology Services segments. It offers underground and surface contract mining, exploration drilling,...
How the Company Makes Money
Perenti makes money primarily by contracting with mine owners (resource companies) to deliver defined scopes of work over agreed terms, earning revenue as it performs mining and mining-support services. Its key revenue streams are (1) underground ...
Perenti Global Earnings Call Summary
Earnings Call Date:Aug 23, 2026
(Q4-2026)
| Next Earnings Date:Feb 23, 2027
Earnings Call Sentiment Positive
The call emphasized multiple financial and operational strengths: record adjusted EBIT(A), improved margins, strong free cash flow and an exceptionally strong balance sheet with reduced leverage and high liquidity. Operational momentum was highlighted across Contract Mining and Drilling Services, supported by sizable work-in-hand ($6.2B) and a $20B pipeline, plus material contract wins (Bellevue, Fourmile). Key challenges include flat reported revenue, notable non-cash impairments and one-off statutory adjustments (including a $64.4M revaluation loss on BTP), timing risk around asset-sale proceeds, and some near-term margin headwinds in drilling and from portfolio transition. Overall, the positive earnings quality, cash generation and balance sheet strength materially outweigh the lowlights tied largely to accounting adjustments and timing risks.Positive Updates
Record EBIT(A) and Improved Margin
Record EBIT(A) of $340 million, up 2% year-on-year, with EBIT(A) margin increasing to 9.8% on broadly flat revenue (~$3.46 billion).
Negative Updates
Flat Revenue
Revenue was broadly flat year-on-year at $3.46 billion despite portfolio shifts, with the completion of large projects (e.g., Botswana underground) reducing top-line growth in FY '26.
Read all updates
Q4-2026 Updates
Positive
Negative
Record EBIT(A) and Improved Margin
Record EBIT(A) of $340 million, up 2% year-on-year, with EBIT(A) margin increasing to 9.8% on broadly flat revenue (~$3.46 billion).
Read all positive updates
Company Guidance
Perenti guided FY‑27 revenue of $3.45–3.65 billion and EBIT(A) of $335–355 million, with net capital expenditure of ~$370 million (including Bellevue and Fourmile), and reiterated that earnings will remain second‑half weighted; the guidance reflects the announced BTP divestment and portfolio actions expected to recycle ~$140–155 million (BTP $100m, Iduapriem $30–40m, idle AMS fleet $10–15m) — ~ $150m in total — to fund higher‑return opportunities. Work in hand is $6.2 billion with a $20 billion tender pipeline (Australia $8.6bn, North America $6.4bn), the copper pipeline has nearly doubled to $6.6bn (from $3.5bn), drilling utilization is expected to rise from ~70% in FY‑26 to the mid‑70s in FY‑27, idoba product costs are guided to be < $5m, CRI amortization ~ $15m and the effective tax rate is expected to increase to ~34%. Management also reconfirmed long‑term targets of 5–10% revenue growth, EPS growth above revenue growth, ROE >10%, free cash flow >5% of revenue, and a dividend policy of 30–40% of underlying NPAT(A).Perenti Global Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.34B | 3.49B | 3.34B | 2.88B | 2.44B |
| Gross Profit | 664.41M | 2.46B | 596.31M | 504.44M | 385.99M |
| EBITDA | 615.40M | 667.68M | 625.33M | 545.18M | 405.80M |
| Net Income | 83.12M | 120.61M | 95.48M | 95.74M | 40.66M |
Balance Sheet | |||||
| Total Assets | 3.22B | 3.33B | 3.36B | 2.87B | 2.84B |
| Cash, Cash Equivalents and Short-Term Investments | 322.52M | 481.32M | 459.14M | 307.36M | 348.52M |
| Total Debt | 571.31M | 786.04M | 928.60M | 806.36M | 901.86M |
| Total Liabilities | 1.39B | 1.46B | 1.57B | 1.44B | 1.51B |
| Stockholders Equity | 1.77B | 1.83B | 1.76B | 1.41B | 1.31B |
Cash Flow | |||||
| Free Cash Flow | 95.27M | 199.65M | 152.64M | 24.20M | -126.64M |
| Operating Cash Flow | 444.00M | 510.10M | 487.79M | 398.12M | 341.30M |
| Investing Cash Flow | -310.14M | -223.92M | -382.73M | -275.29M | -311.83M |
| Financing Cash Flow | -288.39M | -271.41M | 52.85M | -173.13M | 48.82M |
Perenti Global Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | AU$108.35M | 7.11 | 13.72% | ― | 5.48% | 2772.00% | |
70 Outperform | AU$2.18B | 21.14 | 13.86% | 1.92% | 7.90% | 35.92% | |
67 Neutral | AU$2.20B | 26.07 | 4.58% | 3.34% | -4.34% | -31.42% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | AU$1.79B | 20.62 | 11.52% | ― | 48.61% | ― |
* Basic Materials Sector Average
AU:PRN
Perenti Global
2.30
0.04
1.59%
AU:MAH
Macmahon Holdings Limited
1.00
0.59
144.50%
AU:DVP
Develop Global Limited
5.66
1.88
49.74%
AU:MSV
Mitchell Services Limited
0.51
0.26
102.00%
Perenti Global Corporate Events
Perenti Details Early Progress of On-Market Share Buy-Back
Aug 25, 2026
Perenti Limited has provided an updated notification to the ASX regarding its ongoing on-market share buy-back program for ordinary fully paid shares. The update, dated 25 August 2026, confirms that 167,465 shares were repurchased on the previous ...
Perenti outlines FY26 results and clarifies basis of financial disclosures
Aug 23, 2026
Perenti Limited has released a FY26 results presentation summarising its operations and financial performance for investors, while emphasising that the document is informational only and not an offer of securities. The company highlights the use o...
Perenti Files Updated Corporate Governance Statement with ASX
Aug 23, 2026
Perenti Limited has lodged its corporate governance statement and accompanying Appendix 4G with the ASX for the year ended 30 June 2026, confirming compliance with the ASX Corporate Governance Council’s key principles. The statement, current...
Perenti Declares Interim Dividend for June 2026 Half-Year
Aug 23, 2026
Perenti Limited has declared an interim dividend of AUD 0.045 per ordinary fully paid share for the six-month period ended 30 June 2026. The ASX-listed mining services group continues its practice of returning capital to shareholders, reinforcing ...
Perenti’s Statutory Profit Slumps on Discontinued Operations as Core Earnings and Dividend Edge Higher
Aug 23, 2026
Perenti has reported largely flat revenue from continuing activities for the year to 30 June 2026, with a slight 0.4% decline to A$3.34 billion and a marked deterioration in statutory profitability driven by discontinued operations. Profit from co...
Perenti Announces On‑Market Share Buy‑Back of Ordinary Shares
Aug 23, 2026
Perenti Limited has notified the market of a new on‑market share buy‑back, targeting its ordinary fully paid shares trading under the ASX code PRN. The program reflects capital management initiatives that can signal confidence in the c...
Perenti to Unveil FY26 Results in Investor Teleconference on 24 August
Aug 18, 2026
Perenti Limited has scheduled the release of its financial results for the year ended 30 June 2026 for Monday, 24 August 2026. The ASX-listed mining services group will accompany the announcement with a teleconference and question-and-answer sessi...
Perenti Sets October 2026 AGM Date and Director Nomination Deadline
Aug 17, 2026
Perenti Limited has scheduled its next Annual General Meeting for 16 October 2026, in line with ASX Listing Rule 3.13.1, with a key agenda item being the re-election of directors. The company has set 26 August 2026 as the deadline for director nom...
Perenti trims potential equity overhang as 1.76m conditional rights lapse
Jul 24, 2026
Perenti Limited has notified the market that 1,764,508 conditional rights to securities, designated as PRNAC, have lapsed after the conditions attached to those rights were not satisfied by 20 July 2026. The cessation of these rights slightly redu...
Perenti Provides Daily Update on Ongoing On-Market Share Buy-Back
Jun 30, 2026
Perenti Limited, listed on the ASX under the ticker PRN, is actively managing its capital structure through on-market transactions in its ordinary fully paid shares. The company’s disclosures indicate a focus on maintaining transparency arou...
Perenti Cancels Shares Under On‑Market Buy‑Back
Jun 30, 2026
Perenti Limited has notified the cessation of 348,548 ordinary fully paid shares on the ASX, following their cancellation under an on‑market share buy‑back completed on June 30, 2026. The reduction in issued capital marginally increase...
Perenti cancels over 1 million shares in on‑market buy‑back
Jun 29, 2026
Perenti Limited has cancelled 1,049,276 ordinary fully paid shares as part of an on‑market buy‑back, according to a new Appendix 3H notification lodged with the ASX. The reduction in issued capital reflects the company’s ongoing ...
Perenti Advances On-Market Buy-Back with Continued Daily Share Repurchases
Jun 26, 2026
Perenti Limited has continued its on-market share buy-back program, reporting that a total of 4,905,945 ordinary fully paid shares had been repurchased prior to the latest trading day. The company disclosed that it bought back a further 86,680 sha...
Perenti advances on‑market share buy‑back with continued daily purchases
Jun 25, 2026
Perenti Limited has updated the market on progress under its on‑market share buy‑back program, reporting that it has repurchased a total of 4,731,380 ordinary fully paid shares prior to the latest trading day. The company disclosed tha...
Perenti Updates Market on Progress of On‑Market Share Buy‑Back
Jun 24, 2026
Perenti Limited has disclosed an update to its ongoing on-market share buy-back program covering its ordinary fully paid shares listed on the ASX under code PRN. The latest notification reports that a total of 4,557,397 shares had been repurchased...
Perenti Director Vanessa Torres Increases Shareholding
Jun 24, 2026
Perenti Limited has disclosed a change in the shareholding of director Vanessa Torres, who increased her direct holding in the company. Torres purchased 100,000 ordinary fully paid shares on market for approximately $231,778, raising her total hol...
Perenti Updates Market on Progress of On-Market Share Buy-Back
Jun 23, 2026
Perenti Limited has disclosed an updated notification for its ongoing on-market share buy-back, covering ordinary fully paid shares under the ASX code PRN. The update forms part of a daily reporting process tied to a buy-back program initially not...
Perenti appoints Vanessa Torres to board with 50,000-share holding
May 29, 2026
Perenti Limited has announced the appointment of Vanessa Torres as a director effective 29 May 2026, marking a change in the composition of its board. Alongside her appointment, Torres holds a personal interest of 50,000 ordinary shares in Perenti...
Perenti Discloses Final Director Interest Notice as Mark Norwell Leaves Board
May 29, 2026
Perenti Limited has announced that Mark Alexander John Norwell has ceased to be a director of the company as of 29 May 2026, in a regulatory filing to the ASX. The final director’s interest notice records that Norwell holds no Perenti securi...
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.