Slides
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Service Stream Managing Director’s 2026 Presentation 21 October 2026
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• Underpinned by strong and predictable O&M base 2 Key Messages A successful year headlined by the entry into Defence and step-change improvement in quality of earnings 1 2 3 4 5 • Further improvement in Group profitability • Another period of exceptional cashflow generation Enhanced financial results Diversified, high- quality operations Step-change in performance Strong platform for growth Improved shareholder returns • EPS-A 13.1 cps, up 18.0% on FY25 • Successful entry into the Defence sector • Underpinned by low-risk, predictable O&M base • Group EBITDA margin up 60 bps to 6.6% • Utility margin up 130 bps to 5.8% • Defence ops mobilised and set for a strong FY27 • Strengthened net cash balance sheet • 18.2% increase in annual dividends
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Group Financial Highlights Delivering improved financial performance and enhanced shareholder returns Total Revenue $ 2,475m Up 2.3% on pcp EBITDA from Operations $ 163.4m Up 11.8% on pcp NPAT-A $ 81.1m Up 18.4 % on pcp Net Cash $ 80.7m Up $7.1m on pcp OCFBIT Cashflow Conversion 113.9% FY26 Total Dividend 6.5cps Up 18.2% on pcp 3
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4 Operational & Strategic Highlights Creating value through disciplined execution of the Group’s strategy Secured Contract Works $3.2bn Retaining 93% of existing contracts which proceeded to market Strategic Diversification Defence Market Entry Total Addressable Market expanded into Defence & Social Infrastructure Improved Group Margin 6.6% EBITDA Margin Up 60 basis points Net cash balance sheet Strategic optionality Supporting further organic growth and M&A Strategic Bolt-On RiE Group Expansion of industrial maintenance capabilities & entry into Oil and LNPG markets Utility Margin Performance 5.8% EBITDA Margin FY26 H2 exit rate of 6.0%
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Safety Proudly differentiating through our strong safety culture and performance • Future focus continues across: ‒ Higher risk work activities and associated critical controls ‒ New contract mobilisations and embedding the Group’s strong safety culture ‒ Staged implementation of select Human Organisational Performance (HOP) principles 5 1.95 2.55 FY25 FY26 Total Recordable Incident Rate 0.71 1.04 FY25 FY26 Lost Time Injury Frequency Rate 0.67 0.74 FY25 FY26 High Potential Incident Frequency Rates
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Work In Hand High-quality, low-risk, well diversified order book underpinning the Group’s future growth Total Group WIH Exceeding $8.2bn Secured over the initial contract terms + additional $6bn in extension options Secured Contract Awards $3.2bn Over initial contract terms High-Quality O&M Order Book 85% Annuity-style, long-term predictable contract base 6 Telstra Evolve Telecommunications 5 Year + Ext Opt Telstra Wireless Telecommunications 5 Year Term Greater Western Water Metering Services Water 5 Year Term Energy Queensland Metering Services Electricity 3 Year Term Major Renewals New Contract Wins \ \ \ Defence Property & Asset Services Defence & Social Infrastructure 6 (+4) Year Term Yarra Valley Water Network Operations Water 9 Year Term Millmerran Power Station Shutdown Industrial 3 Year Term Telstra, Ausgrid Intercity Fibre Deployments Telecommunications Various Terms \
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7 Successful mobilisation and initial operational performance providing confidence in contribution targets in FY27 7 Defence Operations • Successful transition with ‘Go Live’ occurring on 1 February 2026 • Mobilisation completed in-line with program timeline and internal budget • 1,600+ resources on-boarded, 350+ vehicles deployed across 110+ sites, including new in-field IT solution • Multi-disciplinary team now established to target new project MCW opportunities through Defence procurement programs from Jan 2027 • Defence contract providing the foundation for expansion across other major asset management portfolios and broader social infrastructure opportunities
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Our Value Creation Strategy Delivering Results To be Australia’s Leading Essential Network Services Provider Improved financial performance and strong balance sheet Dependable operational performance and enduring relationships with our valued clients Higher quality, diversified revenues biased to annuity style, lower-risk maintenance agreements Enhanced returns and sustainable value creation for Shareholders Expanded capabilities and growth across adjacent markets 1 2 3 4 5 Delivery Superior service solutions and delivery excellence Optimisation Simplify, optimise and enhance our delivery model Growth Profitable growth and ongoing diversification 8
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9 Shareholder Value Creation Creating long-term shareholder value through an owner's mentality Total Shareholder Returns (TSR) 207.2% FY23 to FY26 Earning Per Share (EPS) +118% FY23 to FY26 Total Shareholder Returns (TSR) Ranking #2 ASX 200 Industrials FY24-FY26 EBITDA from Operations 12.7% CAGR FY23 to FY26 Net Profit After Tax Amortisation (NPATA) 30.1% CAGR FY23 to FY26
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FY27 Trading Update & Outlook 10 • Group performance during Q1 FY27 reflects a solid start and positive foundation for the year ahead – Utility operations on track to deliver incremental margin improvement over full-year – Defence operations now well established with increased confidence of incremental margin improvement • Expect minor 2 nd half bias, aligned with prior historical periods, driven by typical work seasonality and scaling operations • Client work programs and expenditure has not been impacted by macro economic factors associate with global conflicts and unrest • Market conditions continue to support strong demand and present ongoing opportunities for sustainable growth FY27 is expected to deliver a step change in revenue and earnings growth, supported by continued positive momentum, scaling operations and contributions from recently mobilised agreements
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