Fund Manager Summary
The fund managers believe that the outlook for Duratec Ltd presents a compelling opportunity, despite recent market fluctuations. In their opinion, the decision by Ryder Capital to exit their long-held position at a share price of $1.13 reflects a strategic move based on valuation considerations, having realized a strong gain. This action indicates a cautious sentiment among investors regarding the company's future performance. Fund managers are closely monitoring market trends and valuation metrics to assess potential re-entry points, suggesting a balanced approach to investment in Duratec Ltd moving forward.
Source: Trading View
Commentary From The Managers
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QVG Capital
30 Sept 2025
$2.10
Summary
- Duratec is nearing key defence contract awards that have been anticipated for years.
- Positive outlook for other business lines from the second half of FY26 and beyond.
- Recent share price performance reflects the optimism surrounding the company’s future.
- QVG Capital remains patient despite recent results that underrepresented the team's quality and growth potential.
- Investment thesis is vindicated by the anticipated improvements in business performance.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
QVG Capital
30 Sept 2025
$2.10
- Duratec is nearing key defence contract awards that have been anticipated for years.
- Positive outlook for other business lines from the second half of FY26 and beyond.
- Recent share price performance reflects the optimism surrounding the company’s future.
- QVG Capital remains patient despite recent results that underrepresented the team's quality and growth potential.
- Investment thesis is vindicated by the anticipated improvements in business performance.
Summary
Balmoral Investors
31 Aug 2025
$1.83
- Balmoral Investors believes Duratec Limited specializes in assessment, protection, remediation, and refurbishment of steel and concrete infrastructure.
- The fund manager initiated a position due to Duratec’s key segments: Defence, Mining & Industrial, Building & Facade, and Energy.
- Defence exposure, particularly in capital works, is a primary driver of the investment thesis.
- Potential work from the AUKUS agreement related to UK and US nuclear submarines in Australia strengthens the conviction in Duratec.
- Distinct skills in defence capital programs position Duratec favorably to convert tenders to work in progress soon.
- The potential $8bn investment in HMAS Stirling WA enhances confidence in the company’s growth prospects.
- The Defence Fuel transformation program further supports the investment thesis.
- An undemanding multiple, net cash balance sheet, and proven management provide an attractive long-term outlook.
Summary
Ellerston Capital
30 June 2025
$1.44
- Duratec (DUR AU) experienced a 15% decline during the quarter due to a downgrade in FY25 guidance.
- Revenue and EBITDA expectations were reduced by approximately 7% and 5% respectively at the midpoint.
- The downgrade was mainly due to project award delays in the Defence and Mining sectors.
- Unseasonal weather disruptions also impacted operations across key regions.
- Despite short-term challenges, activity levels improved significantly in May and June.
- Core divisions such as Energy, Defence, and Building & Facade are operating at or near-record run-rates.
- The order book remains healthy, with management confident in a strong second half.
- Ellerston Capital continues to hold Duratec as a core position in the portfolio.
- The investment thesis is supported by long-term structural tailwinds in Defence spending, Marine Infrastructure Investment, and Asset Remediation.
Summary
Firetrail Investments
31 May 2025
$1.52
- Firetrail Investments continues to hold its position in Duratec.
- Duratec underperformed in May due to a downgrade in FY25 EBITDA guidance.
- The downgrade was attributed to poor weather and minor delays in defence contracts.
- Despite the downgrade, Firetrail Investments maintains its investment thesis.
- Defence revenue is expected to nearly double over the next three years as activity ramps up at Garden Island.
Summary
Ryder Capital
30 June 2023
$1.13
- Ryder Capital sold their investment in Duratec Ltd (DUR).
- This decision was based on valuation grounds.
- The sale allowed Ryder Capital to realise a strong gain.
- The position had been long-held prior to the exit.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Exiting a long-held position can signal that even the most promising investments, like Duratec Ltd, may face valuation headwinds. It seems prudent to reassess when gains appear substantial, as the market's pulse can shift unexpectedly."
Last Updated: 30 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Duratec Ltd (ASX:DUR)?
Fund managers including Ryder Capital, Firetrail Investments , Ellerston Capital, QVG Capital and Balmoral Investors have invested in Duratec Ltd (ASX:DUR).
Why do fund managers invest in Duratec Ltd?
Fund managers have invested in Duratec Ltd due to its strong valuation metrics and growth potential. Despite some exiting positions for valuation reasons, the overall sentiment reflects confidence in the company's performance and returns.
What happened to Duratec Ltd (ASX:DUR)?
Fund managers are investing in Duratec Ltd due to its imminent opportunities in the defence sector, particularly related to the AUKUS agreement and significant capital works projects. Recent comments highlight the company's strong positioning in various industries, including mining, energy, and infrastructure refurbishment, which support long-term growth. The firm’s proven management, solid financials, and an undemanding valuation further enhance its attractiveness as a strategic investment.