GenusPlus Group (ASX:GNP) management highlighted record half-year results and an expanding opportunity set during its investor presentation, pointing to strong revenue growth, cash generation, and continued momentum in both the order book and tender pipeline.
Half-year performance and dividend
Managing Director David Riches said the company delivered a “really strong half,” reporting revenue of AUD 535 million, AUD 46.3 million of EBITDA, and AUD 24.9 million in net profit after tax (NPAT). Riches said the company converted a significant amount of work into its order book and maintained growth in its tendered pipeline.
Cash, facility headroom, and cash flow
Genus reported cash of AUD 178 million, including AUD 22 million in restricted term deposits. Management described the balance sheet as net cash positive, citing AUD 127 million of net cash.
On funding capacity, Riches said Genus executed a AUD 429 million syndicated facility, which management said provided AUD 278 million of headroom at December to support growth initiatives.
Riches also said the business generated AUD 91 million in cash, with operating cash flow conversion of 199%. Capital expenditure was AUD 34 million year-to-date, with management targeting full-year CapEx of AUD 40 million to AUD 45 million, depending on the second half. Riches said investment is required to support larger projects and that some specialized equipment cannot be hired.
Major projects and operational highlights
Riches cited several contract wins and project milestones during the period, including:
- A large Western Power contract in Western Australia, with an additional AUD 110 million of revenue “backed on” to the project.
- The Alinta Wagerup project as an opportunity for the Energy and Engineering segment.
- An FMG decarbonization contract, which management framed as part of broader mining industry efforts toward decarbonization.
- The Genus ACCIONA joint venture securing the Western Renewables Link project, which Riches described as AUD 1.6 billion.
In the Infrastructure segment, Riches said HumeLink is “fully underway,” with all activities running and the final activity—stringing—still to start. He said the project is live, with a management team on site, and added that Genus had “no issues at this point in time with HumeLink or our JV relationship.” He noted there are roughly 18 to 20 months remaining on the project.
Riches also said TasNetworks CCI is expected to wrap up over the next half, with Genus looking toward the start of further TasNetworks work, which he described as a “massive opportunity” and within the company’s “sweet spot.” He said the company is hoping to start that job during the half and expects revenue to flow into next year over a three-to-four-year period.
Construction has also started on the Hunter Central Coast project, following some early works late last year, with management expecting revenue over the next two years.
Segment results and margins
Riches said performance was strong across all three operating segments, while noting there remained “some room for improvement.”
Infrastructure delivered AUD 345 million in revenue for the half. Riches said EBIT grew 54% and the segment produced 5.2% EBIT, similar to the prior half. He said the company was being “responsible” in revenue recognition on larger projects and reiterated its objective of achieving 5% EBIT or better on large projects, while noting other infrastructure work can operate closer to higher margin levels. He described Genus’ broader target range as 4% to 8% EBIT.
Riches also discussed the integration of MGC Rail, saying it was progressing well and that rail offers opportunities similar to Genus’ core utility work (substations, lines, overhead lines, and services/maintenance). He described the acquisition as a “perfect” fit and suggested it could become a growth area over the next couple of years.
Energy and Engineering recorded AUD 151 million of revenue and AUD 10.9 million of EBITDA. Riches said the segment has been balanced by the acquisitions of CommTel and Pardal, adding engineering revenue alongside construction. He referenced project conversions including Wagerup and Atmos. He also said the company is seeking to build capacity to run more simultaneous projects, describing a strategy to move toward having roughly five projects active at once.
Riches added that the electrical and instrumentation business is exploring opportunities across areas such as data centers, as well as solar, battery energy storage systems (BESS), and substations. He said the company would like to add more wind-related opportunities into the segment.
Services was described as a segment that began with telecommunications and expanded to include asset management and vegetation management. Riches said it had previously been loss-making two to three years ago but has since improved, with the focus on long-term contracts. He cited ongoing relationships with Telstra and NBN and said the business is stepping into multi-year vegetation management contracts.
In Q&A, Riches was asked about Services’ EBITDA margins after two consecutive reporting periods “in the teens.” He said he would “hold where you are at the moment,” describing the margin outcome as strong and saying the priority now is to maintain margins while growing the revenue line.
Pipeline, M&A, and other priorities
Riches said the standout metric was a AUD 2.6 billion tendered pipeline, which he described as reflecting significant opportunity tied to the energy transition. In response to a question on pipeline mix, he said the overall split was typically around two-thirds infrastructure and one-third energy and engineering, and he did not see that mix as having materially changed in recent years.
He also addressed questions about North West Transmission Developments and timing, indicating major construction activity is “more FY27,” though he noted approvals and environmental constraints have been easing and that project start timing could potentially move sooner. He added that the company did not need that work to meet its budget assumptions.
On acquisitions, Riches said the company remained keen and believes it has the management depth to execute further M&A. He said Genus has considered how large or small it should go and identified focus areas, while emphasizing discipline. “Stay tuned,” he said, adding the company intends to update the market as it progresses.
Riches also highlighted non-financial priorities, including safety—reporting an injury statistic of 3.5 and a target to be under 3—as well as preparation for sustainability and ESG reporting requirements. He said apprentices and trainees remain a focus area, noting some growth but not as much as the company wants, and referenced a successful overseas recruitment drive over the past two years alongside efforts to train local workers.
About GenusPlus Group (ASX:GNP)
GenusPlus Group Ltd engages in the installation, construction, and maintenance of power and communication systems in Australia. The company operates through three segments: Infrastructure, Communications, and Industrial. It offers various services, including planning, designing, constructing, operating, testing, maintaining, managing, and decommissioning power network assets for electricity utilities, infrastructure developers, telecommunications networks, and mining companies. The company also provides electrical and instrumentation services to mining, oil and gas, infrastructure, and power generation sectors; turnkey engineering and design solutions; HV and LV electrical installations, fabrication, HVAC maintenance and upgrades, asset management, and site services to mining and heavy industrial sectors; and EPC solutions, including procurement, assembly, design, construction, commissioning, and maintenance for renewable assets in the wind, solar, new energy, and power systems storage sectors, as well as resource, IPP’s, traditional generators, and network service providers.
