NPAT up 13%, operating cash flow up 16%, guidance confirmed

SOLID FINANCIAL PERFORMANCE WITH 9M18 NPAT UP 13% YOY1 TO $564M
CONSISTENTLY STRONG CASH GENERATION:
CASH FLOW FROM OPERATING ACTIVITIES2 OF $1.1BN, UP 16% YOY
LTM3 EBITDA CONVERSION RATE OF 101%
NET CASH OF $1.2BN, UP $595M YOY
CONTINUED REVENUE4 GROWTH, UP 11% YOY TO $10.7BN
ORDER BOOK5 OF $35BN, NEW WORK OF $11.8BN; EXTENSIVE PIPELINE
2018 NPAT GUIDANCE OF $720M TO $780M CONFIRMED
CIMIC Group reported continued growth in revenue and profit for the nine months to 30 September 2018, and recorded increased work in hand.

Highlights of the result compared with the same period during 2017 were:

  • Solid financial performance with NPAT up 13% to $564 million
  • All Operating Companies contributing to revenue growth, up 11% to $10.7 billion
  • Stable EBIT, PBT and NPAT margins6 of 7.7%, 7.2% and 5.3% respectively
  • Consistently strong cash generation, with cash flow from operating activities up 16% to $1.1 billion; $1.7 billion in LTM. EBITDA cash conversion rate of 101% in LTM
  • Free operating cash flow7 of $572 million; $1.1 billion in LTM
  • Strong balance sheet, with a net cash position of $1.2 billion, up $595 million YOY
  • Order book of $35 billion; Operating Companies’ work in hand up $1 billion YOY
  • Guidance confirmed for 2018 NPAT in the range of $720 million to $780 million, subject to market conditions.
CIMIC Group Executive Chairman Marcelino Fernández Verdes said: “CIMIC continued to perform well during the nine months to 30 September, reporting consistent growth in revenue and profit.

“We also achieved strong cash generation, and cash conversion of 101% during the last 12 months.

“The sustained performance of our integrated model and the pipeline of major projects ahead positions us well to meet 2018 guidance, and provides a positive outlook beyond this year.”

CIMIC Group Chief Executive Officer Michael Wright said: “The success of our strategy of providing end-to-end capabilities for our clients is reflected in the new work won across our Operating Companies during the period.

“We reached contractual close on the Waikeria Corrections and Treatment Facility Public Private Partnership (PPP), using the technical and operational expertise of CPB Contractors, and our financial strength through Pacific Partnerships to provide a whole-of-life solution.

“We also delivered an integrated approach for Victoria’s Metro Tunnel project, combining our rail expertise in CPB Contractors, UGL and EIC Activities to deliver the project as the premier rail services provider.

“In mining, we secured an extension at Encuentro in Chile, building on Thiess’ establishment in the country three years ago and providing a platform

/Public Release.