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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Stock of the day: Downer Group

Downer reports a significant financial recovery with an $82.1 million profit, leading to an 18% stock surge.

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This video was created on 28 August for IG audiences by ausbiz.

Stock of the day: Downer Group (ASX:DOW)

Downer returns to profitability

Downer, the engineering firm, has reported a remarkable financial recovery, posting a net profit after tax of $82.1 million. This is a significant turnaround from the previous financial year’s loss of over $385 million. CEO Peter Tompkins credited this recovery to a refreshed leadership team and substantial changes in the company’s operating model.

Shareholders are set to benefit as well, with the total dividend rising by nearly 31% to 17 cents per share. Downer is now targeting an earnings margin of 4.5% by FY25.

Stock rises but caution advised

Following the positive earnings report, Downer’s stock surged by 18%, reflecting strong investor confidence. However, analysts are suggesting caution, suggesting that the significant gain could lead to short-term profit-taking.


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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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