You can hear me?
Yeah.
Thanks. Okay, everyone, we'll get started. It's just gone 1:00 P.M. Good morning, good afternoon, everyone, depending what state you're in. David Riches is Managing Director of GenusPlus Group, and we've got Damian Wright, Chief Financial Officer, online as well. This morning, this afternoon, we're here to present half-year results for GenusPlus Group, and look forward to going through. Obviously, if anyone's got any questions, you can either hold to the end or jump in if you require. Absolutely fantastic result. You know, we had a really strong half at Genus. AUD 535 million of revenue, AUD 46.3 million of EBITDA, AUD 24.9 million NPAT.
We held up the, we converted a heap of work to the order book, and we've held up the tendered pipeline, cash of AUD 178 million, and we've announced an interim dividend of AUD 0.02. If we just pause there for a moment, and those that have been on, on the journey with us for, for a period of time now, obviously, the business has really changed over the last few years, and it's just super exciting times. Take my hat off to all of the Genus management team, a very strong half, and, and, likewise, thank the support of the shareholders that have been with us on the journey. Some of the, some of the highlights through that, through that half.
Obviously, we won an extremely large job in our home ground with Western Power. We managed to back on another AUD 110 million worth of revenue to that job. The Alinta Wagerup project was a fantastic opportunity for our energy and engineering business. FMG decarbonization contract, so we're seeing some of our miners work towards the decarbonization that the rest of Australia is working towards. An outstanding effort with Genus ACCIONA JV to secure the Western Renewables Link at AUD 1.6 billion. Some of the highlights on the corporate side. We've executed an AUD 429 million syndicated facility. We appointed a new director on the board, Tony. I welcome Tony to the Genus family. Our acquisitions integration continues.
Obviously, we've done a number of acquisitions over the years, and we feel very comfortable on integrating them into the group and going well with the ones we did over the last year to 18 months. A snapshot of the segments, for those that are newer to the call. Genus is a one-stop shop for anything in the energy market, anything from a service item right up to an AUD 1.6 billion transmission line or infrastructure asset. As said before, AUD 535 million for the group. You know, we just. I, I honestly couldn't be prouder here today. We're seeing all three segments really, really go well. Still some room for improvement, so I don't think everything's a perfect day, but we'll get to them as we go through the segments later.
You know, still a very, very strong outcome. Infrastructure at AUD 345 million for the half, energy and engineering, another outstanding performance at AUD 151, and our services business, that we're really trying to not forget about those lower-end services and stuff that'll back up our larger projects. The outlook, it's a pretty important page, as we had a massive conversion of, of work last 6 months ago, and we've been able to continue to convert that work to order book, and we've actually continued to grow our tendered pipeline as well. We used to talk about some of the opportunities in the area, it became quite a large number of opportunities that's out there for Genus, and we'll look more to that in the, in the look-aheads for the segments.
you know, there is an absolute wide range of opportunities. We get to see some of our work, sometimes very early at Genus, as a part of an asset that's getting built, or a farm that's getting built, or a connection that's gonna happen to the grid. There's a range of opportunities, but these are the most important metrics, which is order book and tendered pipeline. With not forgetting our, our recurring works or our more servicey-type works, you know, that continues to grow as well. Yeah, I think the main standout here is to, you know, a tendered pipeline of another AUD 2.6 billion was, is a fantastic result. We're seeing, we are seeing significant opportunities through the group in the transition to the energy, into the new energy world.
We're certainly not taking our eyes off M&A opportunities, and we'll continue to bring them to market as they arise. I'll let everyone read the charts and, obviously, through their own presentations, but, you know, just pausing for a minute to see that continuous growth throughout the business, you know, and taking a step back to, to realize, you know, we had to invest in the business many years ago to build the systems to be able to do what we're doing today. We did that. We've obviously paused and reflected to our system many times over the years and made sure it's strong enough, and I think we're seeing the results of that as we continue to grow without hiccup.
It's a true testament to the executive team at Genus to build those systems and keep them launching into the future. Financial overview. Record revenue, obviously, for the half, up 60% on the PCP. Record EBITDA at AUD 46.3 million. Record statutory NPAT at AUD 24.9 million. Our normalizations in there is acquisition and legal costs, acquisition, legal, and advisory costs as per normal, as we continue to look for M&A opportunities. We had to close out some old claims in one of our acquisitions from years gone by, EC&M. That's in there. Our acquisition amortization is AUD 1.1 million, and a strong EPS position. The financial position, a strong cash at AUD 178 million. Net cash, AUD 127 million, with AUD 22 million in restricted term deposits.
Our franking credits are, are very healthy, you know, but the standout is really, you know, this new facility we've put in place, giving us AUD 278 million of headroom at December for growth. Obviously, there is a range of opportunities, and, you know, we've had several meetings all together where, you know, we've lifted our pre-contracts team, you know, some time back now to try and, you know, really leverage into the, into, one, the energy and engineering space and the transmission space. To have that type of headroom, obviously, is very comfortable for us to grow. A fully franked dividend, interim dividend of AUD 0.02 will be paid. The cash flow. You know, we, we generated AUD 91 million in cash. Operating cash flows, conversion rate was 199%.
Our CapEx, we've spent AUD 34 million to date. We are managing our CapEx as, as responsibility, as strictly as we can. You know, with the influx of these larger projects and wanting to own the key assets on that project, we need to, we need to invest for those projects. Some of our key equipment you wouldn't be able to hire anyway, so we, we do need to buy it. We are managing that CapEx and want to manage that through to a AUD 40 million-AUD 45 million for the year, just depending on, on how the second half goes. We'll continue to manage CapEx, we understand, as a business, but at the same time, we do need to feed these larger projects, or we won't be there at the start line.
We'll drop into the segments now, you know, and have a bit of a look at the future and maybe talk to some of these segments. Our infrastructure segment, which for those that are new, obviously, builds a range of activities from very small power lines to very big ones, substations, and, and, and anything in that, and now moving into the rail sector to see if we can push on our skill sets in the rail sector. Revenue of AUD 345 million. You'll, the EBITDA followed down at 54% growth. That's a 5.2% EBITDA. That's similar to where we were in the last half.
We do believe that's sort of, you know, obviously, with the larger projects coming in, we're just being responsible on how we, how we recognize the revenue on those, on those projects. It's, we think it's, it's there, and we, and we've, we've got some margin improvement to do, but I also want to be responsible and, and make sure we look at these large projects. Obviously, we've told everyone we want to get 5% EBITDA out of those projects or better. We will continue to strive for that. We have a range of other work in infrastructure that, that will work closer to our sort of eight. You know, we try and aim at Genus between 4% and 8% EBITDA.
I think you will see, you know, certainly, I'm not, not expecting that margin to come down, and it's sort of flattened out there, and we've got everyone's expectations in line with, with a far bigger business. I think it's a fantastic result, and we are continuing to look at these bigger projects as they come in alongside the smaller, more typical projects we've done over the last 10 to 20 years. HumeLink's fully, fully underway now. The last activity to start is stringing, but, you know, all other activities are up and running. We are building HumeLink. It is a live project. It's, we're spending time. We've got a management team on site. We're going well. ACCIONA is our JV partner. There's a lot of effort going into HumeLink. So far, it's a, it's a great job.
We are, we're, we're getting on with it. We're, we're doing it, and we're gonna build it. We have no issues at this point in time with HumeLink or our JV relationship or any of those things. We'll continue to strive to a to the outcome. You know, at this stage, there's 18 months, 18, 20 months to go, so we'll just continue to build that. TasNetworks CCI, which we spoke about over the last 12 months, that'll wrap up over this next half, and we look towards the start date for TasNetworks. This is a massive opportunity for Genus Infrastructure. It's, you know, a fantastic client down there at TasNetworks in Tasmania. It's a, it's a job we've built plenty of times before at Genus. It's, it's right in our sweet spot.
We, we're really looking forward to getting that job started in this half, we're hoping. We will, and start to see the revenue come through from TasNetworks over the, into next year, over the coming three or four years. Hunter Central Coast, another major project. Early works was done, there was some early works done at the end of last year, but construction started now, and we're underway at Hunter Central Coast. We'll see that revenue come through over the next two years. Western Power Clean Energy, that was already a massive project for us, and we backed in another AUD 110 million. It's become a very significant opportunity in our home patch for Western Power. MGC Rail Integration continues to go well with infrastructure.
The plan, you know, obviously, you know, for those that can picture what we build every day of the week, you know, we build power lines down the road, we build substations, we build, you know, pit and pipe electrical, overhead electrical. You know, that, that all sits in the range of the utility power work. It's no different in the rail, you know, so there, there's, there's a, there's a raft of opportunities in substations and, and lines, and overhead lines, and, and service and maintenance in rail. That's really where we wanna see, is how we can use our skill sets from all of the things we've learned over the years and, and pivot that into, into the rail work. We, we actually it's, it's a, it's a perfect acquisition.
We've been working with the founders of MGC, or I have, and, yeah, it's going really well, and we've we're very like-minded. I think stay tuned on that. That'll be a good growth area over the next couple of years for infrastructure. If we, if we take a, you know, take a step back, you know, maybe change page, naming it. If we look at.. You know, we all sit here with our infrastructure business on the market drivers, and we look at the, you know, Rewiring the Nation, and it is a fantastic opportunity, but there's just so many other opportunities in this area as well.
If we look at the connections, the end-of-life assets, just maintenance work on transmission, you know, and we're really starting to see that over East revenue from transmission start to come through now, with HumeLink starting to put some meaningful revenue into the last six- months, and some smaller transmission opportunities that we've started over that six months as well. We're seeing that smaller business-as-usual type work and that HumeLink work, but we're not seeing 20 of those projects yet. There's still a long way to go from a revenue point of view on our over, on our over East expansion in transmission. Those opportunities are gonna come from, from not just Rewiring the Nation.
You know, that every asset needs to be connected to the grid, whilst you're connecting to the grid, there may be changes to the grid, there may be upgrades to the grid, there may be end-of-life assets that need to be fixed on the grid as well. If we take a step back from that, we can't forget about our mining and private customers that still need us to do their connections.
Taking a further step back from that, our distribution arm, you know, like we are still very, very strong in distribution, and that was the, the, the forefront of the, of the, of the national expansion for Genus five or 10 years ago, is, you know, we expanded in the distribution market, and we continue to find new opportunities in the distribution market similar to the transmission market, which is, you know, that's really, you know, in the, in the streets and working with the utilities, you know, keeping the lights on. Then if we look at that, you know, a bit more holistically, again, you know, we certainly have a huge substation presence in Western Australia. We've, we've always got, you know, four or five substations, you know, on the go or starting in Western Australia at times.
You know, we really haven't seen any meaningful revenue out of the substation market in the East as well. You know, some really. I suppose you've got some old stuff in infrastructure that continues to grow. We've got some new stuff that's starting to grow now, and we've gotta, you know, we've gotta make sure we do a good job at that. There's still some room for new business, you know, where we can take a skill set from the West, or even likewise now, we might be able to take a skill set from the East and put it back in the West. I just think there's a, there's a long way to go with infrastructure, and they're, and they're already looking at new areas such as rail as well on top of that.
That's my, my update on, on the market drivers for infrastructure. Energy and Engineering. You know, this has been, a fantastic business unit for us, or a segment for us. It all started with a, with a AUD 1.7 million acquisition of EC&M. That's where we started, and this is where we are today. You can see the bottom point, you know, the electrical and instrumentation work that came through from EC&M. We haven't forgotten about that. We're actually starting to, to grow that. Revenue of AUD 151 million, EBITDA of AUD 10.9 million, a great result out of Energy and Engineering. Over the last couple of years, we've really been able to, to balance this business out with the acquisition of CommTel and Partum.
It's now adding in a lot of engineering revenue, alongside our construction revenue, so it's a really well-balanced business. Meanwhile, you know, the Partum and CommTel skill sets allow Genus, anywhere in Genus, but mainly in energy and engineering, to, to fully lifecycle their project and own the project and be that tier one, you know, the, the principal contractor on site, which was what our aim always was. We saw some conversions of, of projects in that six- months with Wagerup and Atmos, so they're continuing to win work. A few years, or probably 18 months to two- years ago now, we lifted the pre-contracts team, and we probably always had one or two projects in the middle and one starting, one finishing.
We're trying to lift that up to sort of 5 projects going at once. We're continuing to work to that strategy. The electrical and instrumentation part of the business, you know, like, there's a lot of, there's a lot of oomph in the market out there around, you know, such assets as data centers, et cetera, you know, which is a very. You know, the skill set of our E&I business can do that, and we're looking at opportunities around those types of opportunities, as well as, you know, say, your solar and your BESS and your substations that we build in and around those assets. Another big driver, you know, we really want to see a wind opportunity come in here.
You know, this energy and engineering, we've, we've you know, this slide gives you a look at some of the % of, of green energy in the States. But, you know, we really want to add in that whole piece, you know. Like, if, you know, this segment's going to become a full, you know, power, you know, asset business that can build any, any, any asset that's converting something to power. And, and we put some notes here on the side of this page, which really tells the story on how we've become that principal contractor, you know, through using the market growth, you know, having strong partnerships and proven execution. Our services segment, probably more of our newer segment, and started with just comms for those that are, are a bit newer to the call.
We know we, we bought we had a very small comms piece, and we bought another comms piece, which was a business out of administration called Tandem, which we rebuilt and, and looked at opportunities around that comms piece. From there, we moved our asset management part of the business into this segment and, and added on vegetation over the last 12 months. So it an absolute. This business, you know, it was a loss-making segment for us when we first started, if you take yourself back two or three- years. So, you know, an outstanding effort and, and, you know, it's got a bit of a more modest growth to this business, but it's a services business. It's long-term contracts. It's really, really.
It's a very, very strong contracting play, and that's what we want this business to be. We want all the long-term, you know, 10-year type contracts, if we can get them. Certainly, three and five-year contracts, you know, in this part of the business. You know, we've been working at building a, like we did with energy and engineering a few years ago, building the foundations of getting this business to a size where its foundations are strong, so it's ready for either to win that large, you know, multi-year contract, 'cause they're, you know, that's what they've chosen to do, and that's the opportunity, or likewise, M&A. Both of them, you need a strong foundation, and that's what we've been doing.
True credit to that is we've seen a lot of growth through the PFA business over the years, and we've been able to maintain healthy margins. Our Telstra and NBN relationships continue to, to be strong, and now stepping into some multi-year vegetation management contracts. Where to next for services? You know, we, we, we could put up the charts of the total spend of comms and the total spend of asset management of vegetation, but, you know, realistically, these are our three service areas at the moment, and on the right-hand side of the page is, you know, why aren't we looking at some of these areas?
We need to take our skill sets or add on new skill sets and take them into these areas on the right-hand side of the page, which are very close to what we're already doing, or we're already doing them, e.g., mining, for example. We're already doing a lot of work for mining. Why can't we leverage that service piece into there? Everyone knows the size of the pie with the defense work. You know, we'll continue to monitor opportunities there. Facility management, you know, once. That's where the really long-term contracts come. Water. Water is, you know, how can we not take? You know, this is our- we do a range of asset management for our power utilities. We need to move that into those water utilities.
Social, social infrastructure as well, which is, you know, like roads and, and public transport and things like that. Again, how do we take our, our, our asset management business and grow it in these areas? Vegetation management, and obviously, telecommunications is a massive piece. I, I certainly don't believe telecommunications is finished yet. I was away on the long weekend in, with my family on, in, on Australia Day, and, and you go to a small town, and you can't even download a, a very simple page off the internet. Obviously, we've still got a long way to go, in my opinion, with, with remote telecommunications or towns, and that's where we want to be as a partner to NBN and Telstra to roll that work out. Other metrics, certainly some very, very important stuff on this page.
It may be towards the back of the presentation, but our injury statistics are at three point five. We have an aim to be under three, and we're gonna keep striving that. You know, without safety, we are nothing. Make that clear. I can speak for half an hour prior to this, you know, on all the good things and all the opportunities in front of us, but getting our people home at night safe or getting them home the same as condition they came to work is by far the most important for us. Also, making those people feel comfortable that the safe system of work does have, does, you know, has experience.
You know, we've got 20 years of, of experience, you know, not quite 20 years at, at, in Powerlines Plus and through to Genus, of actual real-life experience that goes into our safety systems, and we're not gonna stop investing on that so that it's ready for the growth as we go. Sustainability and ESG, we will need to follow the Corporations Act and the requirements around that moving forward, we've, we've, we've got the right consultants, and we've done a lot of homework on that, so we're well in front of the curve and ready for that. Our apprentice and trainees, we are working hard here. We have seen some, some growth in it, but not as much as we want. This is a key focus area. We need to train more people.
We did do a massive overseas drive over the last 2 years. That has worked very well, and we welcome all those people into our family. We, we also need to continue striving to train local people and local young people. We, we, we wanna continue to put effort into this, and hopefully, we see the outcome of more effort over the next two- years. Talking back to those systems and, and, you know, the hard work that got put in over the last 10 years to see, to see the people now, nearly 2,000 people, and us handling it and, and not under pressure, is because we've done the work in the past. That sort of wraps it up, everybody. I'm, I'm happy to take some questions from there, if there's any online.
I'll jump in with a couple of questions, David Congrats on a good result, and thanks for taking my questions. Just firstly, if we look at the tender pipeline, you know, it's good to see that it's grown versus the FY 2025 balance. Just keen to get some colour on the mix there. Like, how's the pipeline for BESS work, transmission work? Like, are you seeing a concentration of the tender pipeline towards some of the larger scale projects? Just also keen to get your views on other markets, like mining infrastructure as well.
Yep. Yeah, no, we're not seeing it. It, it moves around a little bit from time to time, but no, it's, it's, we wouldn't see too many, you know, the panels in the services business probably sit more either in that recurring work , or are new, so to speak, so lesser in the services space and when it comes to tender. Certainly, I think on a, on a size, you know, infrastructure's, you know, two-thirds, let's say, and one-third to energy and engineering.
You know, we would normally see that be, you know, similar to that, and we can lift our pre-contracts teams and BD teams if we need to, to push that a bit harder if we wanted to, or likewise, we can sort of hang back a little bit if we're, if we're, you know, if we're getting very, very busy. I, I haven't seen that materially change in a couple of years now. Like, the, the amount of, you know, like, the amount of inrush is still there, you know, and still very live. We are trying to partner with some key people in, in, in energy and engineering. It's sort of, you know, 'cause you do a fair bit of early work in that. You know, you're gonna go and have a look at a big BESS project, you'll, you'll do some ECI work.
We, we are, we are working with those key partners to see how long their journey is as well, and that might give us some more color to that, to that question, but we are, you know, certainly asking those questions. It's still very, very busy in my opinion, and I'm not sure how to put that in a spreadsheet, but it's very, very busy.
Great. That's, that's great color. Maybe just looking at the guidance, 35% EBITDA growth, no North West Transmission Developments has a fair chunk of ECI in FY 2026. If we kind of strip that out, is there any assumptions around the major construction work that kind of flows into FY 2026, or is that more commencing in FY 2027 and contributing to that outlook?
Yeah, that's, it probably on a more like, no, it doesn't need to be here, essentially, is the answer to that question. It's more FY 2027, but they are. These projects are getting a fair bit keener today to get started from probably where we were two years ago, when there's a lot of environmental, you know, constraints and things that need to be signed off. We're seeing that free up a bit, to be honest, so I think it has a chance to potentially start. I won't write it out for now, but I don't, I don't essentially need it either to, look at that budget.
Understood. Just maybe lastly, if we look at the services segment, you've now delivered 2 reporting periods, consecutive reporting periods, with EBITDA margins, you know, in the teens. How should we think about the EBITDA margin going forward, maybe in the short to medium term? Should we be thinking there's a floor in the teens or potentially even grow from here?
I think we are achieving fantastic percentage results, so I'd probably, you know, if I was working on your side of certain things, you know, I'd hold where you are at the moment. I think, you know, that we've enjoyed that margin conversion, which we've, you know, for those that have been around a couple of seasons, you know what I'm talking about. We've really converted that, and it came out stronger than I, than I. You know, like, I could see that it could do that 'cause I knew some parts of the business were doing it early on, but it's done it probably more, more holistically than I, you know, than I pictured. A very strong result. The idea now will be to try and hold, and grow that revenue line now.
A bit the same as what we've done with the other two businesses, you know, in the years gone by, or the other two segments.
Great. Thank you.
Any other questions or queries?
I might jump back on with another question if there are none. Maybe just on the M&A pipeline, how's that looking? I know you've been a bit quiet for the last six- months versus FY 2025. The cash balance is up. Are you thinking more aggressively on acquisitions? Are there any advanced opportunities that you're entertaining?
We're certainly very keen. You know, M&A and organic growth has worked for us now for three or four years. You know, we've had both, and we've been able to handle both, I think there is absolutely, from a bench strength point of view, we are well and truly capable of doing some M&A activity. We probably have lifted that size a little bit throughout this year. You know, where you've seen us typically do some smaller acquisitions. Not to say they won't still flow from time to time. There might be a geographical footprint we wanna own, or someone in the market a bit smaller is retiring, et c., right?
Let's, let's always keep that door open for a, for a smaller piece of the pie, which makes sense for Genus. We've lifted that size. We spent a lot of time last year just having a look at what opportunities would... You know, how big could we go? How small should we go? Should we go left? Should we go right? Where are our key focus areas around where we wanna do M&A? We, we have a plan on that, and we've got to execute that plan. We, we, you know, we're gonna be as responsible, disciplined as we can here, right? We do. You know, when Genus says it wants to do something, it normally does. That's the business we are.
I suspect, stay tuned, and we'll, we'll continue to update the market, you know. We, we certainly are, are keen to see if we can bolt some M&A in at the right time. Any other questions? We wrapped it up a bit early. Maybe I went a bit too quick, everyone. Sorry. You can, you all get a bit of time back in your day. Thank you very much, everyone, for joining. We look forward to seeing some of you over the next six months, and if not, we'll see you at the, at the next presentation.
Thanks, everyone.