Good morning, everyone. My name is Martin Brydon. I am the Non-Executive Chair of your company and the Chair of this meeting. It is 11:00 A.M. Australian Western Standard Time, and I now call this annual general meeting of Duratec Limited to order. Today's meeting is being held in a virtual format, allowing all shareholders to participate via the Computershare online meeting platform. On behalf of the Board, I would like to welcome all participants to this annual general meeting of Duratec Limited. It's fifth as an ASX-listed company. I would like to begin today by acknowledging the Noongar people, the traditional custodians of the land on which we gather, and pay our respects to their elders past, present, and emerging. Joining me today are my fellow directors, Chris Oates, the Managing Director, and Non-Executive Directors Gavin Miller, Phil Harcourt, and Emma Scotney.
We also have Dennis Wilkins, our Company Secretary, and Ashley Muirhead, the Company's Chief Financial Officer, in the room with us. I would also like to welcome Tutu Fong and AJ Neo from RSM Australia Partners, the Company's auditor, who are joining us online this morning. Before we commence today's formal meeting proceedings, I would like to provide a brief recap of the business performance for FY25 and discuss the success of Duratec's strategic business model. Following my address, we will attend to all the items outlined in the notice of meeting. Following the meeting's formal proceedings, our Managing Director will provide a more detailed overview of the Company's performance in FY25 and the commencement of FY26. Once again, it is a pleasure to have you all with us today and for the opportunity to share our achievements over the past year and outline our plans for the future.
FY25 has been a year of resilience and progress. Despite geopolitical uncertainty and inflationary pressures, Duratec has again demonstrated the strength of its diversified business model and disciplined strategic execution to deliver a milestone result. Our full-year revenue reached AUD 573 million, a 3.1% increase on the prior year. Normalized EBITDA reached AUD 53 million, up 11.3% from last year, while net profit after tax rose to AUD 22.8 million. All business groups contributed to this positive outcome, which positions the business to take advantage of the future growth opportunities we see ahead across all operating sectors. Earnings per share climbed to AUD 0.09, and the board declared a final fully franked dividend of AUD 0.025 per share, taking the total dividend for the year to AUD 0.045 per share, which the board believes responsibly balances reinvestment in growth while also rewarding shareholders.
Our portfolio approach, spanning defence, energy, mining and industrial, building and facade, and emerging sectors, continues to provide resilience and growth opportunities and remains a key differentiator of our business. This diversity allows us to respond to evolving client needs and market conditions. During the year, we experienced significant demand for our services, with a 33% increase in projects completed compared to the prior year. This growth was largely driven by annuity-style works in the energy sector, which offer lower risk profiles and strong margins. Our shift towards more technically complex, compliance-driven projects has positioned us to compete in high-value markets, achieving a variety of project awards, including the King Bay Supply Wharf Refurbishment for Woodside Energy, the Darwin LNG Pipeline Duplication Project for Santos via subsidiary WPF, as well as the Project Phoenix scope for the Department of Defence via DDR, our 49% owned associate business.
In addition, the award of two early contractor involvement ECI head contracts for infrastructure upgrades for the Department of Defence at HMAS Stirling demonstrates our growing reputation for capability and reliability. We anticipate a number of larger project wins in the defence and mining sectors in the short to medium term and maintain very good momentum in these sectors through the small and medium project wins, as well as the master service agreements, MSAs as we call them, that continually flows in. We have a solid order book of AUD 386 million. Our tenders have grown to AUD 1.84 billion, underpinned by major defence and infrastructure programs, including AUD 8 billion earmarked for WA defence projects, and our pipeline sits in excess of AUD 4.65 billion, positioning the company well for continued future growth. Our strategic use of ECI continues to deliver conversion rates into FY2026 and beyond.
MSAs and annuity-style contracts contributed AUD 170 million, representing 31% of revenue in FY25, up from 26% in the prior year, highlighting the success of our ongoing partnerships with key clients. During the year, in line with Duratec's selective approach to acquisitions, we completed a number of strategic acquisitions to boost our end-to-end capabilities. The business acquisition of GF Engineering, which was done through our subsidiary WPF, coupled with the acquisition of Asclear in Victoria and the subsequent year-end acquisition of EIG Australia, have enhanced our self-performed capacity, expanded our footprint in critical infrastructure, and enabled increased direct access to asset owners. These integrations are already delivering benefits, strengthening our technical expertise and reinforcing our growth strategy across the defence, mining, and industrial and energy sectors, and collectively position Duratec to deepen our presence in high-compliance environments where our disciplined delivery model provides a competitive edge.
In FY25, we remain focused on governance, sustainability, and safety. We expanded our board's sustainability committee to include safety oversight, and in September, welcomed Emma Scottney as an independent non-executive director to further enhance our board's capability. Emma has hit the ground running and is already making a valuable contribution to the board. During the year, we completed Scope 1 and 2 emission baselines, adopted emissions intensity as our primary sustainability performance metric, and advanced Scope 3 materiality assessments. These steps position us to meet client expectations and regulatory requirements while contributing to the long-term environmental goals. With safety being central to everything we do at Duratec, we responded to increases in our total recordable injury frequency rate, known as TRIFR, and lost-time injury frequency rate. Okay, sorry, everyone. It seems as though we had a technical glitch there. I'll just repeat what I was saying regarding the safety message.
With safety being central to everything we do at Duratec, we responded to increases in our total recordable injury frequency rate, TRIFR, and our lost-time injury frequency rate by implementing targeted programs, including leadership training and scaffold awareness to reinforce our safety culture and support our commitment to a safer, healthier workplace for all. With a workforce now in excess of 1,265 employees, we continue to be enthusiastic about supporting women in construction, as well as delivering ongoing Aboriginal and Torres Strait Islander opportunities, and we'll continue to do so in FY26. Looking ahead, Duratec is well positioned to deliver strong performance across its core sectors. With a strong financial base, growing market share, including annuity-style contracts and ECI opportunities, and proven capability in executing complex projects, we are equipped to convert near-term opportunities into tangible positive results.
FY26 has commenced in line with our expectations, and we continue to maintain a keen focus on profit margin, and the board remains confident in Duratec's ability to generate consistent earnings growth while building long-term value. Continued investment in capability, workforce development, and strategic partnerships will support disciplined expansion and responsiveness to market demand to deliver sustainable growth and shareholder value in FY26 and beyond. In conclusion, I would like to extend my sincere thanks to everyone who has contributed to our success this year: to our Managing Director, Chris Oates, and our dedicated team of employees whose professionalism, commitment, and expertise underpin everything we achieve; to our valued clients and partners for your ongoing trust and collaboration; to our shareholders for your continued confidence and support; and to our board for its service during the year.
Your collective efforts and belief in Duratec's vision have been instrumental in driving our progress, and we look forward to building on this momentum further in the years ahead. I will now turn to the formal part of today's proceedings. I am advised that a quorum is present, and accordingly, I officially declare the meeting open. We have received a number of valid proxy appointments for the resolutions to be considered today. The results are displayed on the screen. The total number of proxy votes and details for each item of business will be recorded in the minutes and advised to the Australian Securities Exchange. I confirm that a total of approximately 140 million proxy votes have been received, representing approximately 54% of the voting capital of the company.
I also note that Rod Soames from ComputerShare, the company's share registry, is joining us online and has agreed to be the returning officer. Each resolution to be considered today will be decided by poll, and I inform the meeting that, as Chair, I intend to vote any open available proxies I hold in favor of each resolution. Our guests are very welcome to witness the proceedings of this meeting, but as I'm sure you will appreciate, that participation in the business of the meeting is confined to shareholders. Naturally, any comments or questions raised for discussion during the meeting must be relevant to the business before the meeting. I will conduct the formal part of the meeting by displaying each resolution on the screens. Questions will be addressed after all resolutions have been put to the meeting.
How to ask a question: If you have questions you'd like to ask, attendees can submit questions at any time via the Q&A icon appearing at the top right of the screen. To ask a question, select the Q&A icon at the top of the screen and follow the instructions. You will get a record of this question, and it will be sent immediately for review. Please note that while you can submit questions from now on, I will not address them until the relevant time in the meeting. Attendees wishing to ask a question verbally, please follow the instructions written below the broadcast. In order to provide you with enough time to vote, I will shortly open voting for all resolutions for shareholders eligible to vote at this meeting. If you are eligible to vote, please select the vote icon, and the voting options will appear on the screen.
Please note there is no submit or send button. Your selection is automatically recorded. To change your vote, click here to change your vote and press a different option to override. If you have any questions about casting your vote online, please refer to the online meeting guide or call ComputerShare on the number set out in the guide. I now declare voting open on all items of business. The voting tab will soon appear. Please submit your votes at any time during the meeting. Voting will remain open until I close the poll. The first matter for discussion today is the consideration of the annual financial statements for the year ending 30th of June 2025, together with the director's report and auditor's report in respect of those financial statements.
I now table those statements and will provide an opportunity to ask questions in respect of them and the audit in the Q&A session at the end of the meeting. Moving on to the resolutions to be considered at today's meeting. Resolution 1. I refer to Resolution 1 regarding the adoption of the remuneration report. This resolution is set out in the notice of meeting and as displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I'll now put the resolution to the meeting and move to the next item of business. As the next resolution is to consider my re-election, I will hand the chair over to Non-Executive Director Gavin Miller. Gavin?
Thank you, Martin. I refer everyone to Resolution 2 regarding the re-election of Mr. Martin Brydon as a director.
Martin's biography is now displayed on the screen. The board, with Martin abstaining, have no hesitation in recomMEnDing Martin for re-election. This resolution is as set out in the notice of meeting and as displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I now put the resolution to the meeting and hand the chair back to Martin.
Thank you, Gavin. Now moving to the next resolution. I refer you to Resolution 3 regarding the election of Miss Emma Scottney as a director. Emma's biography is now displayed on the screen. The board, with Emma abstaining, have no hesitation in recomMEnDing Emma for election. This resolution is also set out in the notice of meeting and now displayed on the screen, along with the proxy votes received on this resolution.
I now put the resolution to the meeting and move to the next item of business. I refer you to Resolution 4 regarding the approval of the company's employee equity plan. Given that the directors are eligible to participate in the employee equity plan, the directors make no recomMEnDation in respect to Resolution 4. The board encourages all eligible shareholders to cast their votes in favor of this resolution. This resolution is set out in the notice of meeting and is now displayed on the screen, with proxy votes received on this resolution. Again, as all questions will be asked after the last resolution, I now put the resolution to the meeting and move to the next item of business. I refer you now to Resolution 5 regarding the approval to grant performance rights to Executive Director and Managing Director, Mr. Oates. The board, with Mr.
Oates abstaining, recomMEnDs that shareholders vote in favor of this resolution. This resolution is also set out in the notice of meeting and is now displayed on the screen, along with the proxy votes received on this resolution. As all questions will be asked after the last resolution, I now put the resolution to the meeting and move to the next item of business. I refer you to Resolution 6 regarding the reinstatement of proportional takeover provisions in the company's constitution. The board recomMEnDs that shareholders vote in favor of this resolution. This resolution is also as set out in the notice of meeting and now displayed on the screen, along with the proxy votes received on this resolution. I now put this final resolution to the meeting and move.
Apologies again for another glitch, but I will now put this final resolution to the meeting of the annual financial statements or director's report.
No questions, Mr. Chair. To save you the effort, there are no questions for any of the resolutions running through the meeting received to date. There is one general question that's been received from a shareholder.
Okay. Thank you, Dennis. I'm happy to.
We'll take that general question, I think. General question. It's quite topical. The question has asked why we are holding the meeting as a virtual meeting. The opportunity to look directors in the eye would be most welcome, particularly in light of the fact that we dropped out and we lost audio. If you could respond to that, shareholder.
Thanks, Dennis.
Look, it is a fair question, and it is something we've given a lot of thought to since our last AGM. We actually had this question at the last AGM. The board, as it went through all the questions at the next board meeting, sort of tried to come to a landing on it. Chris, amongst others, sounded out the market generally, and there didn't seem to be a strong desire or need to have in-person AGMs. Now, clearly, there are some shareholders that would prefer that. On balance, it's not as though we didn't consider it. We felt as though if we can do this well, and not given the fact that we've just had some technical glitches, which we never had last year, we thought this was a fair way to go forward.
We will always keep an open mind going forward as to whether this will remain the format or we revert to in-person. We will keep that under review.
Thank you, Mr. Chair. No other questions on the platform.
Thank you, Dennis. We have now addressed all questions received prior to the meeting and during the course of the meeting. If you have any further queries on the company's activities, please contact the company during normal business hours. We will now conduct a poll on all resolutions. If you would like your proxy votes to stand, you do not need to take any further action. If you have lodged a proxy vote and wish to have your vote counted, or if you wish to aMEnD a proxy vote already lodged, please follow the process and vote by selecting the vote icon. The poll will be closed in a few moments.
We encourage you all to finalize your vote. I will now take it that all shareholders have voted and declare the poll closed. This concludes the formal business of the meeting. Details of the results of the meeting will be posted on both the company's website and the ASX market announcements platform as soon as practicable. I will now ask Chris Oates, our Managing Director, to provide an operational update on the company. Chris.
Thank you, Martin. Good morning, everyone, and thank you for joining us at this morning's FY25 AGM for Duratec Limited. Looking firstly at our business history, we get a snapshot of our growth since inception. Our CAGR continues at a strong level of 30.2%. Nearly all growth has been organic, and it is only in more recent years that we have intensified our targeted acquisition strategy aligned with our growth initiatives.
Key business drivers remain strongly active in all key market sectors, and the group had a solid start to FY 2026. This slide shows our updated portfolio, which highlights our current footprint across Australia and the key market sectors and locations in which we operate. Importantly, the company's strong performance in FY 2025 positions us well and provides us with confidence to continue to pursue strategically aligned expansion opportunities over the near and long term, ensuring sustainable profitability and shareholder returns. Early in FY 2026, we established our first WPF branch in Brisbane based on our recent APA-MSA works agreement. Revenue delivered in FY 2025 was AUD 573 million, up 3.1% compared to FY 2024 and the highest revenue in the company's history. This was predominantly driven by an outstanding performance across our energy and emerging sectors.
Normalised EBITDA was a record result at AUD 53 million, and importantly, the overall EBITDA margin improved to 9.2% compared to 8.6% in FY 2024. Our balance sheet remains strong with a cash balance of AUD 84 million as at the 30th of June 2025. We maintain strong support from our debt partners, with total committed facilities of AUD 294 million as at 31st of October 2025. Available headroom of AUD 197 million provides ample capacity to fund future growth initiatives. Our order book is healthy. Tenders and pipeline remain very strong, which we will look at in detail later in the presentation. Master services agreements and annuity-style contracts made up AUD 176 million of revenue for FY 2025, which equates to 31% of this year's revenue. This is a large increase in the percentage of revenue generated under MSA annuity-style contracts.
We continue to focus on and grow our MSA work through long-term contracts with new customers, as well as diversifying our offering to existing clients, particularly in the energy sector. Other recent MSA wins include work with APA, Condor Energy, and Norton Goldfields. This revenue sits outside of our order book. In FY 2025, our workforce expanded to 1,265 employees nationwide, and to better support the eastern states, we established a people and culture team in our Sydney CBD office. Safety culture remains our highest priority and is key to creating an environment where we can deliver successful projects. Duratec remains focused on a sustainable future and will continue to identify opportunities and innovations that enable us to act sustainably while supporting the needs of our employees and clients.
Since year-end, we are proud to have our REFLECT Reconciliation Action Plan, RAP, endorsed by Reconciliation Australia, a significant milestone in our reconciliation journey. Our defence sector delivered revenue of AUD 181.4 million and a gross margin of 13%, reflecting discipline, cost management, and operational efficiency. The Duratec-Urtec joint venture, DJV, was awarded two ECI head contracts for the planning phases in Q2 FY25 for critical infrastructure projects at HMAS Stirling. These two ECI contracts are scheduled for commencement in Q2 FY26. As previously announced, the work involves the planning for the provision of fit-for-purpose nuclear-compliant facilities to support the expansion and enhancement requirements of Defence's infrastructure upgrade at HMAS Stirling, to support the U.S. and U.K. rotational force being based out of HMAS Stirling, which is scheduled to commence at the end of 2027.
Duratec is extremely proud to be the first construction company and the second overall company in Australia to achieve ISO 19443 accreditation, the international standard for quality management systems used by organizations operating in the nuclear sector. This achievement not only demonstrates our commitment to quality and compliance in a highly regulated environment, but also positions Duratec as a trusted partner for defence and other critical sectors requiring the highest standards of assurance. During the year, we successfully completed the majority of the five-stage Kununurra redevelopment project, with remaining works to be completed and handed over to Defence in Q3 FY26. In the second quarter of FY26, we submitted our largest tender for Duratec in the defence sector in the form of the Learmonth Fuel Upgrade submission, which is a similar project to the one we recently completed at Tindal for Defence.
Other long-term opportunities remain a key focus, particularly in fuel and marine infrastructure, with potential projects valued at more than AUD 15 billion programmed for delivery between 2028 and 2032. These works align with Duratec's demonstrated strategic growth, which is underpinned by its national resourcing model, financial strength, and proven capability to deliver large-scale defence infrastructure programs. Our mining and industrial sector achieved revenue of AUD 136.6 million and a gross margin of AUD 20.3 million. Notably, achievements this year include securing an AUD 44 million structural integrity project for Rio Tinto and entering into two significant three-year-term contracts with Newmont Boddington Gold, who have also invited us to tender for additional structural mechanical piping works due to the success of our ongoing campaigns.
Leveraging on our original MSA, we have now expanded our service offering for Hancock Iron Ore, formerly Roy Hill, across port, mine, and rail, covering both on-site and off-site shutdown work, reinforcing our position as a trusted partner for these critical scopes. The Berth C&D project was completed in Q3 FY2025, and Duratec continues to work for BHP on multiple fronts, completing structural remediation and integrity works in partnership with Ames and Port Engineering. By prioritizing MSAs and annuity-based contracts with key clients such as Rio Tinto, BHP, Hancock, Newmont, and FMG, as well as expanding over east, we maintain a positive outlook for the sector through FY2026.
Moving to our building and facade sector, which achieved revenue of AUD 111.9 million and a gross margin of AUD 18.4 million, the financial performance reflects our strategic focus on broadening our service offering and leveraging our expertise in both remediation and new construction projects. During the year, we enhanced our market position by utilizing in-house digital engineering provided by MEnD, who support the BNF team's ECI and design-led strategies to improve project planning and installation. Using building information modeling (BIM) and off-site fabrication, our Darwin team efficiently delivered the NT Art Gallery project. Our continued focus on ECI has resulted in the recent award of a large facade refurbishment on a high-rise building in Brisbane CBD, with a second live opportunity in Adelaide anticipated. We also successfully delivered the award-winning heritage facade restorations of Adelaide Town Hall and National Carillon in Canberra.
More recently, we have commenced the heritage restoration of Christ Church Cathedral in Newcastle, New South Wales. BNF entered FY2026 with strong momentum and a healthy pipeline. The strong demand for those capabilities positions us for continued success into the future. Our energy sector, which covers the maintenance and decommissioning of oil and gas assets, as well as the expansion and refurbishment of hydrocarbon storage infrastructure, is positioned for strong growth. In FY2025, the energy sector delivered revenue of AUD 82.5 million and a gross margin of 28.9%. We continue to target and successfully deliver energy sector projects nationwide, including works at the INPEX Ichthys facility in Darwin, critical projects for Santos, and Western Sydney airport fuel infrastructure. Duratec also secured its first direct contract with Woodside Energy, an AUD 21.8 million worth refurbishment at King Bay Supply Base in Dampier, Western Australia.
Our inclusion in APA Group's four-year national fabrication panel expanded our presence in Darwin and strengthened our fabrication capacity, with in-service welding works underway across NT, SA, and Queensland. The February 2025 acquisition of Asclear added industrial blasting, specialized coatings, and hazardous material remediation in Victoria, supporting our energy growth strategy, especially in the Bass Strait. We will continue to pursue diversification through organic growth, investment, and selective acquisitions. Turning now to our emerging sectors, comprising marine transport and water infrastructure, which delivered revenue of AUD 60.6 million and a gross margin of 17.3%. Significant revenue growth in marine and water infrastructure, especially on the East Coast, drove our improved financial results. By leveraging WA marine expertise nationally, we efficiently met rising demand across the sector. The 2032 Brisbane Olympics and B2 Road certification in Tasmania and Victoria positions us to pursue bridge remediation and Olympic corridor asset upgrades.
With a strong pipeline, proven capabilities, and a strategic national structure, Duratec is well positioned to deliver sustained value in FY26 and beyond. I am very happy to introduce DXP Energy Solutions, our newly established strategic incorporated company that aims to enhance Duratec's capabilities within the oil and gas and energy transition sectors. By offering a unique integrated service covering the entire asset life cycle across the energy sector, from development and operations through to life extension and decommissioning, this venture supports further diversification of revenue streams and aligns with Duratec's broader expansion strategy in the evolving energy sector. We are seeing strong initial progress with early work contract awards and our partnership with Condor Energy. Looking ahead, we are optimistic about the opportunities this new venture will bring and expect favorable results into the future.
Moving now to the subsidiary companies, WPF delivered an excellent financial performance with revenue of AUD 59 million and a gross profit of AUD 17 million, up 77% on last year. During the year, WPF acquired the business assets of GF Engineering and relocated its operations to Naval Base Western Australia, providing Duratec close proximity to support defence operations at HMAS Stirling Garden Island and to capitalize on opportunities from the Henderson Defence Precinct. Key project wins include Santos' offshore Harriet Alpha decommissioning project and their Darwin LNG pipe duplication project, where we delivered critical infrastructure, fabricating, and installing the key landside components connecting the Barossa gas export pipeline to the DLNG facility. Moving forward, WPF will continue to pursue multiple opportunities with Santos, Chevron, Woodside, INPEX, and APA Group, in line with our expansion strategy across energy and decommissioning.
Looking now at EIG, which we acquired in July 2025, this acquisition based in Canningvale, WA, is an electrical infrastructure provider specializing in fuels and fluid transport services, including in-house consultancy and design capabilities. It supports Duratec's strategic growth by expanding our end-to-end self-perform capabilities in high-barrier, high-value sectors. We are really excited about the capability that EIG brings to Duratec and anticipate continued positive contributions through FY26 and well beyond. During the year, MEnD relocated to a new office and purpose-built laboratory in East Perth, boosting its capacity to serve both existing and new clients across multiple sectors. In FY25, MEnD launched a 3D reality modeling project for Flinders Port, delivering multi-format three-dimensional digital asset models for future analysis and maintenance planning.
We also secured our first project in the Bass Strait, Victoria, conducting structural testing on a concrete gravity-based offshore oil and gas platform, underscoring our expertise and the way that MEnD provides ECI opportunities for the group. MEnD also continued to excel in the mining sector with many structural integrity inspections completed throughout Western Australia. We have more recently secured 3D modeling work at the Graincorp Wharf and Silos in Geelong and the National Library of Australia in the ACT. Looking ahead to FY26, MEnD will remain focused on digital innovation, strengthening partnerships and delivering high standards of service and practical value for clients, supporting Duratec's continued growth and industry reputation. Looking now at DDR, Duratec's Aboriginal and Torres Strait Islander associate business, which achieved AUD 113.9 million in revenue to deliver AUD 22.2 million in gross profit. RC Construction is now fully embedded and contributed impressively to the FY25 financial performance.
During the year, DDR Group achieved a significant operational milestone securing its largest contract to date, a AUD 54.7 million Department of Defence contract, which formed part of the Project Phoenix portfolio of work in the Northern Territory. The group has expanded its national operations into the NT and remains focused on boosting Aboriginal employment and supporting Aboriginal businesses through its supply chain. DDR has strong work on hand position and is also now tendering several larger scale opportunities that present as the business grows. DDR is set up for another exciting year. We see a strong growth outlook for DDR along with RCC. Moving now to our pipeline and outlook. The order book remains solid with AUD 386 million of work on hand. In the short and medium term, we anticipate this to grow strongly.
In the meantime, our MSA work continues to grow and generally delivers better margins with reduced risk profiles. As mentioned, this work sits outside of the order book. At present, we are involved in 11 ECI projects with an additional five ECI proposals submitted and pending award. In total, if all 16 ECIs convert, they will contribute an extra AUD 700 million of work on hand. We are confident of converting these opportunities in time, along with several other tenders we are working on, many of which have been shortlisted. Our outlook in all sectors is still extremely bright. In the short term, our order book and MSA work demonstrates our ability to maintain good revenue at very good margins. We continue to win small and medium-sized projects through Duratec and our other entities, while our MSA work continues to grow year on year.
Works on larger projects, including Kununurra, Woodside, Tom Price, and now a large facade refurbishment project in Brisbane, continue. Subsidiary companies EIG, WPF, and DDR all have good work on hand and multiple opportunities ahead. We anticipate converting several defence and building and facade ECI contracts into delivery phase with immediate commencement upon award due to the thorough scheduling and planning during the ECI period. The medium to long term is very strong, with ECI contract modelling dominating our future opportunities. The conversion of the ECI projects at HMAS Stirling will be a key focus, and we will look to place ourselves in a good position to win further works at HMAS Stirling and also Henderson, where large marine infrastructure upgrades are planned.
We still have strong tailwinds in the mining, energy, and building and facade sectors and expect to win further works in these sectors and bolster our order book. We keep abreast of the opportunities outside of Australia where our existing clients operate, including Santos, Newmont, and the Department of Defence and the Department of Foreign Affairs. We have a demonstrated history of strong organic growth, and we see that continuing well into the future. We are well funded for future growth. We continually look for potential strategic acquisitions and have an exceptional team within our company helping us deliver on this strategy. With the above outlook, good work on hand, a growing MSA base of work, and our subsidiary companies performing well, we are extremely well placed into the future with an increased level of activity expected in the second half relative to the first half.
Before moving to Q&A, I would like to express my sincere appreciation to the board, our leadership team, and every member of the Duratec workforce for their dedication and hard work throughout the year. I also extend my gratitude to our valued clients, suppliers, and shareholders for your ongoing commitment and support of Duratec as we pursue opportunities to deliver sustainable growth well into the future. This completes my address. I will open the meeting to questions relating to my operational performance.
Any questions, Dennis, at this point?
Thank you, Chair. Yes, we do have one question from a shareholder who correctly identifies that net profit after tax for the 2025 financial year was AUD 22.8 million, and that represents 4% of our revenue. The question posed is, what are we going to do to boost that 4%?
Would you like to take that, Chris?
Yeah, I think we've always pointed to the numbers and said they're okay numbers, they're good numbers. In a growing business, to me, we're still investing into the future, so we do anticipate higher revenues, right? From that perspective, we believe if we—and we're supported by that, or we can demonstrate that through the work that we have in the tender section. If we can actually land that work that we think we are going to do into the future, we're going to hold our gross margin in simple terms, so that's our 18.55%. If we can hold that and add a bit of revenue, we're going to get a pretty strong effect in operational leverage. This will see the EBITDA tick up, the net profit tick up.
In simple terms, add good revenue, hold that margin, maybe it increases a bit if we've got any luck and we land the right work, but we feel we are very well placed to increase on that percentage, and that's our goal. That's not lost on anyone within our business because we're in a pretty good position to do that.
Chris, if I could just add to that, I think from a board perspective, looking at the business, it has been an amazing period of growth and establishing the business. We've made, as you pointed out, quite a number of acquisitions we have to be taken in and bedded in. They've gone exceedingly well, and they will deliver value going forward for all the reasons you outlined in your paper.
I think it's a question of building the heart of the business, which we're doing very well, profitably, but I think it sets a very good platform going forward. Thank you. Any other questions?
Thank you. No, no other questions. That's it. Thank you, Chair.
Thank you, Dennis. That concludes the annual general meeting for Duratec Limited. I thank you again for your attendance and declare the meeting closed. Thank you very much.