Perenti shares experienced a significant drop, plummeting over 20 per cent at the market open following the release of a weaker-than-anticipated first-half performance. The diversified mining services group also revised its revenue and underlying EBITDA guidance downwards for the full fiscal year, further impacting investor confidence. Perenti provides a range of mining services, including contract mining, drilling, and resource management solutions. They aim to deliver sustainable value to clients through operational excellence and innovation.
Citi analyst William Park noted that the results were negatively affected by lower contributions from the Contract Mining division and increased idoba costs, which totalled $4.7 million. Although drilling services performed strongly, generating $422 million in revenue and $42 million in EBITA, the company’s free cash flow fell short of expectations, showing an outflow of $17 million. Park attributed this shortfall partly to delayed debtor payments.
Another factor weighing on investor sentiment, according to Park, was the lack of an update regarding the chief executive succession process. This uncertainty adds to the concerns surrounding the company’s future leadership and strategic direction.
Perenti has adjusted its financial outlook for FY26, now forecasting revenue between $3.45 billion and $3.55 billion and underlying EBITDA ranging from $335 million to $350 million. The company has reduced its net capital expenditure guidance to approximately $325 million and anticipates free cash flow exceeding $170 million. Park anticipates continued downward pressure on the company’s share price, with market attention focused on contract awards, project expansions, and the resolution of executive leadership uncertainty. Shares were last trading down 14.2 per cent.
