DOWNER EDI LIMITED (DOW)
Share Price Analysis and Chart

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21/08/2026

3

Neutral

$7.20

8.11%

On further inspection, UBS lowers the target to $7.20 from $8 and retains a Neutral rating. The analyst notes the shares fell -10% after the FY26 results, which is attributed to the higher-than-usual 2H earnings skew guidance, despite in-line FY27 guidance.

EPS forecasts are largely unchanged.

First Read: UBS notes Downer EDI's FY26 EBITA was in line with its forecast and consensus, as stronger margins offset weaker revenue.

Energy & Utilities outperformed expectations on energy transition activity and improved project execution, while Transport benefited from better execution and stabilisation in Australian Road Services, partly offset by weaker Facilities earnings.

FY27 guidance points to revenue, earnings and margin growth broadly consistent with forecasts, although the analyst highlights a larger than usual 2H weighting due to contract award timing and the ramp-up of secured work.

This implies mid-single-digit downgrades to 1H27 revenue and EBITA forecasts. The broker notes management remains confident in its FY30 ambitions for 4%-5% revenue CAGR and an EBITA margin approaching 6%.

Neutral. Target $8.

FORECAST
UBS forecasts a full year FY27 dividend of 32.00 cents and EPS of 46.00 cents.
UBS forecasts a full year FY28 dividend of 33.00 cents and EPS of 49.00 cents.

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25/08/2026

1

Buy

$8.20

23.12%

Canaccord Genuity maintains its Buy recommendation for Downer EDI with its target price reduced to $8.20 from $8.65 following a FY26 result featuring underlying group revenue of $9,873m and underlying EBITA of $502.9m at a 5.1% margin.

The company reported underlying NPATA of $306.7m within the guided range and declared a final dividend of 16.3c, bringing the FY26 total dividend to 29.2c.

Management targets revenue and earnings growth for FY27 with further EBITA margin improvement, though performance will feature a larger-than-normal second-half skew alongside lower first-half revenue and earnings compared to the prior corresponding period.

The analyst notes the business maintains a robust balance sheet with leverage at 0.8x and ongoing execution of its $260m share buyback program.

FORECAST
Canaccord Genuity forecasts a full year FY27 EPS of 45.00 cents.
Canaccord Genuity forecasts a full year FY28 EPS of 48.00 cents.