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Duratec Ltd (ASX:DUR) shares have been down -6.75% heading into lunchtime trades on Friday as the company declared a revenue downgrade for FY25.
That full downgrade ultimately looks like around $2 to 3 million less in earnings before tax for the full year – with the EBITDA guidance now reflecting $50M to $53M.
Previously, it was $52M to $56M. So, a disappointing change to be sure – after all, fifty-six million nearly looks like $60M on paper – but it could be argued the sell-off on Friday is perhaps an overreaction.
Using the midpoint of both ranges, it is the difference of $2.5M.
The company was also keen to assuage fears heading into the start of a new financial year.
To that end, Duratec today wrote: “Importantly, following a slow start to the calendar year due to late unseasonal weather, May and June are showing strong performance and provide confidence into FY26.”
“Strong tender activity continues with tenders at an all-time high level of $1.7bn.”
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The Australian engineering and construction player still sees its 1Y gains up +33%, though, YTD performance is down -3%. At the same time, it’s effectively outperforming the ASX200 on a 1Y basis by 25%.
With the midpoint difference in guidance ranges pointing to a (ultimately still speculative) loss of $2.5M, that’s about how much in shares had sold off heading into lunchtime on Friday – and morning losses were already well pared at the time.
DUR last traded at $1.45cps.
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