Cash Flow Expands in Fiscal 2021.

Downer is a major domestic infrastructure, rail, engineering, and maintenance business that undertakes contracted mining services. The company is chiefly exposed to the domestic mining, energy, rail, water, road, and telecommunications sectors. But the future of Downer is focused on urban services, and mining and high-risk construction businesses are being sold down. Downer does not have a moat despite position, scale, and strong customer relationships. Contracting is a difficult industry in which to establish a moat and Downer in the past decade underperformed from an operational and financial perspective as a result of miscalculating contract risk, poor project management, and unsatisfactory project execution.