Downer EDI Ltd

DOW: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$7.90	Nttx	Svttgpqz

Downer EDI Earnings: Market Cheers Utilities Segment's Return to Profitability

Mark Taylor

Feb 14, 2024

We retain our AUD 5.60 fair value estimate for no-moat Downer EDI. Underlying first-half fiscal 2024 net profit after tax for the restyled urban services company increased 16% to AUD 68 million. While this was below our expectations, we see no cause to change our midcycle estimates. Downer is clearly demonstrating progress on addressing underperforming businesses, and fiscal 2024 was always going to be a transition year adding uncertainty to near-term earnings.

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