In a low-interest-rate environment, investors seek good income-generating alternatives, generally opting for high quality dividend paying stocks.
GR Engineering Services Ltd (ASX: GNG)
GR Engineering Services Ltd (ASX: GNG) shared strong financial results for HY25, achieving revenue of $272.1 million, an increase from HY24's $187.3 million. EBITDA rose to $34.5 million. Operating activities generated robust cashflows of $56.1 million, leading to a cash balance of $111.8 million as of 31 December 2024. No borrowings were reported and $16.7 million in fully franked dividends was distributed during the period.
The company, one of the best long term dividend stocks maintained a healthy level of project activity, with ongoing engineering, design and construction efforts. GR Production Services strengthened its earnings outlook through extended contracts in the Cooper and Surat Basins.
Mipac and Paradigm sustained high utilisation by delivering automation and control systems solutions to major global clients across the mineral processing, energy and water sectors. These operations continued to be driven by a strong project pipeline and long-term client relationships. The balance sheet remained solid, supported by high cash reserves and available bank facilities. The company increased its interim dividend to 10.0 cents per share, up from 9.0 cents in HY24, and saw its shareholder base grow from 4,360 to 4,942 during the half year.
GR Engineering expects continued growth through its expanding study and project pipeline across various commodities and locations. It remains financially well-positioned to pursue strategic growth initiatives that enhance technical capability and scale. Also, On 08 April 2025, GR Engineering was awarded an engineering study for refurbishing the Black Swan processing plant to support future gold production.
Atlas Arteria (ASX: ALX)
Atlas Arteria (ASX: ALX) achieved a strong performance across its global toll road portfolio in the Q1 of 2025. Traffic and toll revenue grew by 1.6 percent and 6.1% respectively YoY with growth slightly impacted by the leap year. APRR saw a 1.4 percent rise in traffic and 4.0 percent boost in toll revenue. At Chicago Skyway, toll revenue climbed 4.5% after January toll increases, though traffic dipped 1.7% as expected. Dulles Greenway performed well, recording a 6.4% increase in traffic and 5.9% in revenue due to strong off-peak demand.
Progress was made on climate and social initiatives. A 31% reduction in scope 1 and 2 emissions was achieved ahead of schedule, with focus now on reaching a 46% cut by 2030. The company joined the UN Global Compact and aligned its sustainability approach with selected Sustainable Development Goals, aiming to set concrete targets in 2025.
The company improved its strategic focus on optimising business performance, enhancing competitiveness and managing capital efficiently. Discussions began in France around the future of toll concessions post-2031. In the US, a new approach for Dulles Greenway aims to unlock value through working groups and legal actions. Strong Q1 results support a confident outlook with guidance reaffirmed at 40 cents per security and clear intent to deliver ongoing investor value.
(Source: Company Announcements)
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