Downer EDI

Downer EDI - What we do

The company that I have been allocated is Downer EDI. Prior to this allocation I had very limited knowledge of the company and simply thought it was a just mining company (this is wrong).

Apparently Downer EDI actually has its fingers in a lot of pies, including but not limited to; infrastructure, energy, transport, water, minerals etc. (see button above for clarification) Due to this I think their financials will be very interesting to analyse and might I go ahead and assume also quite complex.

The Chairman and CEO message had some words to say about their goals for the FY24 year and how they had/had not met them. One that stood out to me was the goal of reducing overheads by $100m. I will need to do more of a deep dive into previous years statements to see if this is mentioned anywhere else but it seems like an extraordinary goal without laying off staff so I would like to know more about this strategy.

There is a pretty stark difference between the P&L from 2023 to the P&L from 2024. Mainly that 2023 recorded a net loss of $385.7m whereas 2024 recorded a net profit of $82.1m. A difference of over $460m year on year. A contributor to this seems to be the total expenses for each FY with a difference of over $1b combined with a revenue decrease in 2024.

Outside of financials, Downer EDI unfortunately lost 3 employees in workplace incidence's in 2024. This is something that in 2024 I did not think would be a common occurrence. I would like to see more about the health and safety of the company moving forward and a comment on how this occurred in the first place (although unlikely). Did this effect their stock value at all?

Overall their approach to FY2025 seems to be going back to basics with their company and achieving better project delivery. I am eager to do the calculations on their financial statements over the past 2-3 years to analyse their progress.

I don't have any comments on my opinion of the company, I will save that to the end 😋

Downer Podcast with CEO Peter Tompkins

CEO Peter Tompkins (probably)