Duratec upgrades revenue guidance

Engineering and remediation company Duratec has upgraded its revenue guidance for the 2023 financial year after recording strong growth. 

The Phil Harcourt-led company has revised its revenue range to between $465 million and $495 million, up from $420 million to $460 million.

It’s also upped its normalised earnings before interest, taxes, depreciation and amortisation to between $36 million and $39 million, from $32 million to $35 million, announced earlier in the year.

The Wangara-based business reported a revenue of $310 million and EBITDA of $19.3 million in the 2022 financial year.  

In an announcement on the ASX, Duratec said its strong second half of FY23 performance was driven by projects being completed in better than expected timeframes and profits from its recently acquired Wilson's Pipe Fabrication business. 

The company also said its $18 million acquisition of private welding and engineering business had been more profitable than expected.

Duratec acquired the Cockburn-based Wilson's Pipe Fabrication in October 2022 in a bid to tap into the oil and gas market through Wilson’s existing service agreements.

Mr Harcourt said they were pleased with their outperformance of initial expectations.

“These include the recent approval of contract variation claims, commencement of recently secured projects, increased productivity and reduction in risk allowance on a number of projects and a stronger than anticipated contribution from Wilson’s Pipe Fabrication,” he said.

“WPF is now expected to achieve revenue of about $30 million and a gross margin in the high 20 per cent for FY23, of which Duratec receives an eight-month contribution from date of acquisition.

“We continue to focus on maintaining and growing our order book, through the continually sourcing of identified opportunity and tendering at the required level to support the company’s growth in the future.”