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CIMIC Group
CIMIC Group
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CIMIC Group Limited (formerly Leighton Holdings) is an engineering-led construction, mining, services and public private partnerships leader working across the lifecycle of assets, infrastructure and resources projects.

Key Information

History

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Logo used prior to April 2015

Founded in 1949 by Stanley Leighton, Leighton Holdings was first listed on the Melbourne Stock Exchange in 1962.[2] The company formed Leighton Asia, based in Hong Kong, in 1975.[3]

In July 1983 Leighton Holdings, purchased Thiess Contractors, with its major shareholder, Hochtief, becoming a shareholder in Leighton Holdings.[4][5][6] In April 1997, the Welded Mesh structural materials division was sold to Smorgon Steel.[7]

In 2000, Leighton Holdings bought a 70% stake in John Holland; this was increased to 99% in 2004 and 100% in December 2007.[8] Hochtief became a majority shareholder of Leighton Holdings in February 2001.[9]

In October 2013, Fairfax Media alleged that Leighton Holdings had made corrupt payments to Hussain al-Shahristani, Deputy Prime Minister of Iraq, to secure an oil pipeline contract in Iraq and other contracts.[10] Basil Al Jarah, the Iraq country manager for Unaoil, a Monaco-based company allegedly acting for Leighton Holdings, subsequently pleaded guilty to corruption.[11]

By March 2014, Spanish company ACS Group, through its acquisition of a majority shareholding in Hochtief, was the majority owner of Leighton Holdings.[12] In June 2014, Verdes also became chairman of Leighton's executive board.[13]

In December 2014, Leighton Holdings sold John Holland to China Communications Construction for $1.15 billion.[14]

In April 2015, Leighton changed its name to CIMIC Group (abbreviated from Construction, Infrastructure, Mining and Concessions).[15]

In March 2016, CIMIC purchased mining company Sedgman for A$256 million.[16] In December 2016, CIMIC purchased engineering company UGL Limited for A$524 million.[17]

In November 2021, the Ventia services division was spun off with CIMIC retaining a 33% shareholding.[18]

In March 2022, CIMIC was accused of arranging its affairs through the sale of its Middle Eastern business interests to avoid paying workers, subcontractors and suppliers in the region. Fatima Almass Al-Hamad, a judicial guard in Qatar, who was appointed by the court as an administrator of the Qatar business, Leighton Contractors Qatar, described the situation as "a humanitarian disaster".[19]

In April 2022, Hochtief increased its shareholding and commenced action to compulsorily acquire the remaining shares in CIMIC it did not own.[20] Following this, CIMIC was delisted from the Australian Securities Exchange and became a wholly owned subsidiary of Hochtief.[21]

Structure

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CIMIC Group includes the following businesses:[22]

  • CPB Contractors (construction)
  • Leighton Asia (construction)
  • Broad Construction (construction)
  • Thiess (joint control) (mining)
  • Sedgman (mining)
  • UGL Limited (services)
  • Pacific Partnerships (development and investment)
  • EIC Activities (engineering consultancy)

Major projects

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Star City Casino in 2007

Major projects undertaken by Leighton Contractors (renamed CPB Contractors in January 2016) include:

References

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[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia

CIMIC Group Limited is an Australian multinational corporation specializing in engineering-led construction, , services, and public-private partnerships, with operations focused on , resources, and asset lifecycle management. Headquartered in North Sydney, New South Wales, it employs around 39,000 people and generates revenue primarily from heavy industry and non-building construction activities. Wholly owned by HOCHTIEF Australia Holdings—a of the Spanish —since its delisting from the Australian Securities Exchange in 2016, CIMIC traces its corporate lineage to 1899 through predecessor entities.
The company's portfolio includes key brands such as Thiess (60% owned, focused on services), CPB Contractors ( construction), Leighton (international contracting), UGL (asset services and maintenance), Sedgman ( engineering), and Pacific Partnerships (public-private partnerships). CIMIC operates across , the , the , and southern , delivering projects in sectors like rail, tunnels, data centers, and extraction. Notable achievements encompass constructing over 80 railway stations and more than 1,000 kilometers of rail track, as well as recent contracts for battery storage and urban rail loops in . CIMIC has encountered significant controversies, particularly stemming from its prior incarnation as Leighton Holdings, which faced allegations of foreign bribery in securing Iraqi oil contracts through intermediaries like Unaoil, leading to arrests and ongoing investigations. More recently, it has been embroiled in underpayment scandals affecting hundreds of workers and subcontractors, alongside shareholder class actions claiming misleading disclosures about financial practices and regional operations, resulting in a A$45.25 million settlement in 2024.

Corporate Overview

Company Profile

CIMIC Group Limited is an Australia-based company specializing in engineering-led , , services, and public-private partnerships. Headquartered in North Sydney, New South Wales, its business model emphasizes project-based construction and engineering for infrastructure projects as part of Spain's ACS Group, with a primary focus on delivery rather than long-term asset ownership or operation. It operates across the lifecycle of assets in , resources, , and sectors. The company's origins trace back to 1899, encompassing a legacy of delivering major projects globally. As a wholly owned of Australia Holdings Limited, CIMIC Group focuses on sustainable returns through project delivery and workforce development. It employs approximately 40,000 people and generated of A$16.8 billion in the fiscal year ended December 31, 2024. Key include CPB Contractors and for construction, Thiess (60% owned) for contract mining, Sedgman for , and UGL for and services. CIMIC Group's operations span , , the , the , and , with emphasis on , , operations, and in complex environments. The group prioritizes safety, innovation, and alignment with in its project portfolio.

Ownership and Governance

CIMIC Group is a wholly owned of Australia Holdings Limited, following the completion of a offer in 2022 that acquired the remaining minority stake from non-controlling shareholders. Australia Holdings is part of the Hochtief Group, a German construction firm majority-owned (approximately 75%) by the Spanish ACS Actividades de Construcción y Servicios, S.A. This structure positions CIMIC under the ultimate control of ACS, with no public listing since its delisting from the Australian Securities Exchange in 2014. The company's governance is led by a responsible for long-term performance, strategic oversight, and ensuring high standards of corporate conduct, as outlined in the CIMIC Group Board Charter updated on 25 October 2022. The board includes a mix of executive, non-executive, and independent directors, with key members comprising: Supporting committees include the , Compliance and Committee, whose charter was updated 30 October 2024, focusing on ethical standards, , and sustainability oversight. The is further defined by the company's , updated 26 October 2022, which addresses shareholder rights and board operations in a private ownership context.

Historical Development

Founding and Early Expansion (1899–1980s)

The origins of what would become CIMIC Group trace to 1899, when Alfred Goninan founded A. Goninan & Co. in Broadmeadow, , as a general and agricultural implement maker employing 12 workers. The firm quickly pivoted to railway manufacturing, securing its first major contract in 1900 for 100 eight-ton coal wagons for Rhondda Colliery, with the workforce expanding to 90 by 1902 and annual wages surpassing £250 (equivalent to approximately $36,000 today). Incorporated as A. Goninan & Co. Limited in 1905, it acquired a key site in 1919 and by the 1920s was recognized for advanced machinery in bridge and transport fabrication, laying foundations for later rail and services within the group. In 1934, five Thiess brothers—Leslie, Cecil, Pat, Bert, and Stan—established a small earthmoving operation in Queensland's , initially focusing on land clearing, ploughing, sinking, and construction under the name Thiess Bros. The company grew through post-World War II infrastructure demands, securing contracts for nation-building projects like the Hydroelectric Scheme in the 1950s, where it pioneered large-scale earthmoving techniques and expanded into global construction and . By the late 1970s, Thiess had diversified into mining services and resorts, handling millions of cubic meters of earth annually and establishing a reputation for heavy civil works across . Leighton Contractors, the core entity later rebranded under CIMIC, was founded in 1949 by Englishman Stanley Leighton in Victoria as a privately owned firm specializing in and projects. It achieved public listing on the Stock Exchange in 1962, enabling expansion into larger contracts amid Australia's post-war boom, including housing developments and urban in and beyond. The marked international forays with the 1975 establishment of in , which undertook early reclamation works like the Tuen Mun and projects, while domestic growth focused on civil and building sectors. This period culminated in 1983 when Leighton Holdings acquired Thiess, integrating its earthmoving expertise and accelerating the group's scale in mining and heavy construction ahead of further consolidations.

Leighton Holdings Period (1980s–2014)

In 1983, Leighton Holdings acquired Thiess Contractors, a major and firm, marking its largest acquisition to date and introducing German construction giant as its principal shareholder. This move diversified Leighton's operations beyond traditional into resource sector contracting, leveraging Thiess's expertise in open-cut mining and earthworks. The acquisition aligned with broader strategic expansions in the early 1980s, including further development of , which had been established in 1975 and undertaken initial projects such as the Tuen Mun reclamation and Discovery Bay in . Throughout the 1980s and 1990s, Leighton Holdings extended its Asian footprint, entering markets in , the , , and , while later incorporating and . This period saw sustained growth in infrastructure projects, with Leighton Contractors delivering mega-scale developments in and abroad, capitalizing on regional economic booms. maintained its significant stake, fostering a collaborative yet hierarchical dynamic under a longstanding agreement limiting its control to below majority levels until the . Into the 2000s, Leighton pursued additional synergies, notably acquiring full ownership of John Holland by 2007, enhancing its capabilities in rail, , and tunneling works. The group reported robust revenue growth, reaching $23.1 billion in the ended 2012, with 83% derived from and the Pacific region. Major undertakings included contributions to projects like , securing contracts worth approximately $1.2 billion collectively. By 2014, escalating tensions with culminated in the German parent's bid to increase its stake from 58.8% to 74%, offering A$1.15 billion for additional shares at A$22.50 each, amid writedowns on joint ventures and domestic exposures totaling $120 million. Leighton also divested John Holland to China Communications Construction for $1.15 billion in December, streamlining operations amid profitability pressures. These events underscored a transitional phase, with 's influence intensifying following the erosion of prior shareholder pacts.

Rebranding to CIMIC and Post-2014 Growth

In late 2014, , a Spanish multinational firm, through its subsidiary , secured control of Leighton Holdings following an increased stake acquisition completed in May 2014, marking a shift in ownership and strategic direction. This takeover, valued at significant premiums over market prices, positioned ACS as the majority shareholder with approximately 51.7% ownership by mid-2014. Amid ongoing scrutiny over prior issues and allegations at Leighton, the new ownership initiated a portfolio refocus on core competencies in engineering-led , services, and concessions. On April 21, 2015, Leighton Holdings shareholders approved a to CIMIC Group Limited at the annual general meeting, with the effective April 24, 2015, and trading under the new ticker commencing shortly thereafter. The acronym CIMIC represented , , , and Concessions, aligning with the streamlined under ACS oversight. Company executives described the move as signaling a "clean, fresh start" without rejecting historical operations, though it coincided with efforts to distance from legacy scandals involving improper payments estimated in the tens of millions. No immediate structural overhaul accompanied the , but it facilitated renewed investor confidence and operational resets. Post-rebranding, CIMIC pursued growth through divestments of non-core assets and expansion in high-margin sectors. In December 2014, ahead of the formal name change, Leighton sold its John Holland construction unit to for A$1.15 billion, enabling capital reallocation to and services. In January 2015, subsidiary Thiess integrated Leighton's operations, positioning it as the world's largest miner by workforce and capability, with subsequent awards like the A$1.3 billion Lake coal mine extension in . By 2016, internal mergers formed CPB Contractors from Leighton Contractors and Thiess Construction, enhancing delivery on major infrastructure bids, including sections of Sydney's motorway valued at over A$1 billion. These moves contributed to reported revenue expansion, reaching A$14.7 billion by 2018 (a 9% year-over-year increase), alongside net profit after tax growth of approximately 50% from 2015 levels, driven by elevated work-in-hand exceeding A$30 billion by the early . CIMIC also returned over A$2 billion to shareholders via dividends and buybacks from 2015 to 2018, reflecting cash flow strength from secured contracts in and projects. This period emphasized causal efficiencies from ACS's global expertise, though exposure to commodity cycles and project delays remained inherent risks in the sector.

Organizational Structure

Key Subsidiaries and Divisions

CIMIC Group's organizational structure centers on specialized operating companies that deliver services in , , resources , asset , and public-private partnerships, with a mix of wholly owned subsidiaries and joint ventures providing operational flexibility and global reach. These entities leverage the group's engineering-led approach to manage complex projects, often integrating capabilities across sectors for efficiency. As of 2024, the portfolio excludes divested assets like Services, which CIMIC fully exited through share sales completed in November 2023. CPB Contractors, formed in January 2016 via the merger of Leighton Contractors and Thiess Construction businesses, serves as the flagship construction subsidiary, executing large-scale infrastructure projects including rail, roads, tunneling, and building works primarily in . It incorporates Broad Construction as a key division for managing contractor roles in commercial and industrial developments. operates as the Asia-Pacific and -focused construction arm, handling contracts in high-density urban environments, such as data centers and marine works. BIC Contracting, a entity, specializes in building, infrastructure, and projects, extending the group's presence in regions like the UAE and . In mining and resources, Thiess—a with CIMIC holding 50% control alongside Elliott Management since 2021—provides open-cut and underground mining services, equipment operation, and rehabilitation across , , and the , emphasizing sustainable practices like electrification of fleets. Sedgman, an integrated solutions provider, delivers plant design, construction, and operations for commodities including and . For services and maintenance, UGL offers asset integrity, , and facilities management, including rail systems and power upgrades. Public-private partnership activities are managed through Pacific Partnerships, which develops, finances, and operates concessions such as toll roads and social facilities, often in collaboration with PPP globally. EIC Activities supports group-wide engineering, procurement, and , enhancing project delivery through technical consulting and digital tools. This divisional setup enables CIMIC to allocate resources dynamically while mitigating risks via specialized expertise.

Leadership and Management

CIMIC Group's leadership is headed by Executive Chairman Juan Santamaria, appointed on 6 November 2020, who previously served as and Managing Director from February 2020 to June 2022; he holds a in . The is Pedro Vicente, appointed in June 2022, with prior roles as Executive General Manager of Operations for CIMIC Group and Managing Director of ; Vicente possesses a and ICCP certification. The comprises seven members, including two independent non-executive directors, three non-executive directors, one (the Chairman), and one alternate director. Independent directors include Russell Chenu (BCom, MBA, CPA; appointed June 2014) and Kathryn Spargo (LLB Hons, BA, FAICD; appointed September 2017). Non-executive directors are José-Luis del Valle Pérez (LLB; appointed March 2014), Pedro López Jiménez (MEng Civil, MBA; appointed March 2014), and (MCom, BEc, FCA, CTA; appointed December 1990), with Robert Seidler AM (LLB; appointed October 2023) serving as alternate for del Valle Pérez since June 2014. The board maintains a governance framework that delegates specific functions to committees and senior management under the CEO's leadership, as outlined in the CIMIC Group Board Charter. Key executive positions supporting the CEO include Derek Kerr (BA Hons in and , FCA; appointed June 2023; former UGL CFO), Corey Hannett (BEng Civil, GAICD; appointed October 2023; former Director General at Victoria’s Major Transport Infrastructure Authority), and Chief People and Administration Officer Andrew Nolan (LLB Hons, BsocSc, GAICD; appointed September 2022). The sole standing board committee is the Ethics, Compliance and Sustainability Committee, chaired by Kathryn Spargo, with members Chenu, del Valle Pérez, López Jiménez, and Robinson; it oversees ethics, compliance, and sustainability matters per its charter updated 30 October 2024. Management operates through a decentralized structure, with managing directors leading key subsidiaries: Jason Spears (BEng Civil Hons) at CPB Contractors, Brad Davey (Bjuris, LLB; appointed March 2022) at , Grant Fraser (NHD Eng Mechanical, GAICD; acting since September 2017, appointed December 2017) at Sedgman, Doug Moss (BE Civil Hons, MEng Sc; appointed November 2020) at UGL, Geoff Sewell (BE Civil, Business Administration; appointed October 2020) at EIC Activities, and Graham Whitson (BEng Civil, CertBusAdmin, CertAppFin; appointed 2025) at Pacific Partnerships. This approach enables operating companies to pursue sector-specific strategies while aligning with group-wide under the board's oversight and the CEO's direction.

Business Operations

Core Services and Sectors

CIMIC Group delivers engineering-led services across , , , and , with a focus on , resources, and sectors. Its operations emphasize complex project delivery, sustainable solutions, and integrated , supported by subsidiaries that provide specialized capabilities. The company's segments include , services, and investments, enabling end-to-end solutions from through to operations. In construction, CIMIC's primary offerings involve , , and execution of large-scale projects, including networks, facilities, and urban developments. CPB Contractors handles and building works across and internationally, delivering projects in roads, rail, tunneling, and water , often as managing contractors for and private clients. Broad Construction, a CPB , focuses on commercial and industrial builds with an emphasis on safety and efficiency. Leighton Asia extends these services to Asia-Pacific markets, providing technical engineering support via EIC Activities for and project optimization. Mining and resources services form another core pillar, targeting open-cut and underground extraction, , and . Thiess delivers contract operations in , , and the , incorporating autonomous systems and rehabilitation for environmental compliance. Sedgman specializes in plant design, construction, and commissioning, serving clients in base metals, precious metals, and . These activities support the full resources lifecycle, from site preparation to production optimization. Integrated services and public-private partnerships (PPPs) address ongoing and concession-based models. UGL provides , operations, and upgrades for rail, power, and assets, leveraging digital technologies for . Pacific Partnerships develops and manages long-term infrastructure concessions, such as toll roads and social facilities, sharing risks and revenues with governments. This diversified approach allows CIMIC to serve sectors like projects and advanced facilities, with revenue distributed across (approximately 60% in recent years) and services.

Geographic Presence and Markets

CIMIC Group maintains its headquarters in North Sydney, New South Wales, Australia, where it originated and continues to derive the majority of its revenue from domestic , , and services projects. Internationally, the company operates in more than 20 countries across , the , , , and , leveraging subsidiaries like Thiess for services and CPB Contractors for . This global footprint supports engineering-led operations in resource extraction, urban development, and public-private partnerships, with approximately 25,500 employees deployed across these regions as of 2022. No, can't cite wiki. From [web:45] 24,000 in 2023. Adjust: As of May 2023, CIMIC employed around 24,000 professionals across 20 countries, emphasizing in high-demand sectors. In , CIMIC has a longstanding presence in , , , , the , , and , expanded during the 1980s and 1990s through 's regional growth. Recent contracts include residential construction in , awarded in June 2025 to for a project commencing September 2025. Operations in this region target via Sedgman and infrastructure via Broad Construction Services. North America features comprehensive office networks, focusing on energy and rail projects through UGL and CPB Contractors, while sees growing involvement tied to parent Hochtief's activities. In the and , Thiess provides services, including in , and includes ventures like Chile's Encuentro Oxides project for Minerals. These markets emphasize resource operations and large-scale , with revenue diversification beyond to mitigate regional economic cycles.

Major Projects and Achievements

Infrastructure and Rail Developments

CIMIC Group's subsidiaries, particularly CPB Contractors and UGL, have delivered extensive rail infrastructure across Australia, including over 1,000 kilometers of track and more than 80 stations as of 2021. These efforts emphasize upgrades to existing networks and new developments to enhance capacity, speed, and reliability in urban and regional corridors. In , CPB Contractors and UGL were selected in April 2025 for the Logan and Gold Coast Faster Rail project, involving duplication of tracks from two to four between Kuraby and Beenleigh, alongside signalling and electrification upgrades to support faster services and increased frequency. For Brisbane's , the consortium—comprising CPB Contractors, UGL, and Pacific Partnerships—secured a $5.4 billion package in 2019 to handle tunnelling, construction of underground stations at Albert Street, Roma Street, and , plus ongoing maintenance. Sydney Metro initiatives represent significant achievements, with UGL and CPB Contractors contributing to the City & Southwest line's Linewide works, incorporating Australian-first innovations like automated systems for driverless operations across 31 kilometers of track from Chatswood to Sydenham, including overhead wiring and 11 new stations. The earlier Northwest project established benchmarks for efficiency in Australia's inaugural driverless . In , a led by CIMIC delivered a new fleet and Dubbo maintenance facility under the NSW Regional Rail program. Melbourne's rail expansions include CPB Contractors' role in the Metro Tunnel Project via the Rail Network Alliance, achieving a milestone 10-day trial in February 2025 for twin tunnel works to integrate new underground lines. UGL supports Metro Trains Melbourne's operations, maintaining over 900 kilometers of track, 200+ stations, and 15 lines. The Suburban Rail Loop East project earned international innovation awards in October 2025 for advanced construction techniques in this orbital rail link. Broader infrastructure contributions encompass road and utility projects, such as CPB Contractors' August 2025 contract for Melbourne's Eastern Freeway upgrade between Tram Road and Manningham Road to cut travel times and improve connectivity. UGL's work on Western Power's electricity infrastructure further supports integrated transport networks.

Mining and Resources Contracts

CIMIC Group's mining and resources contracts are primarily executed through its subsidiaries Thiess and MACA, which specialize in open-cut mining services, including removal, handling, drill and blast operations, and asset management for clients in , , , and sectors. These contracts often involve long-term partnerships with major resource companies, emphasizing operational efficiency and safety, with Thiess handling the bulk of large-scale projects following CIMIC's increased ownership stake to 60% in April 2024. In , Thiess secured a three-year extension worth A$2.3 billion at Jellinbah Group's Lake Vermont Mine in Queensland's on June 25, 2025, covering continued services including removal and handling. Earlier in 2024, a four-year extension with for the Caval Ridge Mine generated additional revenue through operation and maintenance of equipment. MACA was awarded a and drill-and-blast services at Atlas Iron's Miralga Creek in on May 21, 2024, focusing on extraction. Internationally, Thiess expanded into critical minerals with a CAD$205 million, three-year full-service for Vale Base Metals' Stobie Open Pit project in , , announced July 16, 2024, targeting nickel- operations. In Botswana, Thiess, via the Majwe , won a A$1.7 billion for Diamond Company's Jwaneng Mine Cut 9 project, involving large-scale earthworks and diamond recovery. A services agreement with Mantos Copper SA at the Mantos Blancos mine in provides haulage and dumping services, marking Thiess's entry into South American copper production. Notable Australian coal contracts include a A$140 million increase to Thiess's agreement with at Mt Owen in the Hunter Valley for enhanced volumes, and a prior A$1.2 billion deal at Mt Arthur also in the Hunter Valley, emphasizing drill-and-blast integration. Thiess also extended services at Fortescue Metals Group's magnetite project in September 2025, incorporating alongside activities.
ProjectClientValueDurationLocationAward Date
Lake Vermont Mine ExtensionJellinbah GroupA$2.3 billion3 years, June 2025
Stobie Open PitVale Base MetalsCAD$205 million3 years, July 2024
Jwaneng Mine Cut 9A$1.7 billionMulti-yearPrior to 2025
Caval Ridge ExtensionUndisclosed (prior A$110 million variant)4 years, June 2024
Miralga CreekAtlas IronUndisclosedMulti-yearMay 2024

Public-Private Partnerships and Other Ventures

CIMIC Group's involvement in public-private partnerships (PPPs) is facilitated through Pacific Partnerships, its dedicated entity established to collaborate across the group's expertise in , delivering, and operating assets. Pacific Partnerships manages a portfolio emphasizing , , and facilities, often in consortiums with government entities in and . As of 2023, these initiatives represent a strategic diversification from traditional and contracts, leveraging long-term operational revenues. One prominent PPP is the Transmission Gully project on State Highway 1 in , procured in 2013 as the country's first road-based PPP, aimed at improving connectivity between and the Kapiti region with a 27-kilometer expressway. , a CIMIC , handled design, construction, and financing elements, with the securing a 25-year concession for operation and maintenance upon completion in 2022. In education infrastructure, Pacific Partnerships participated in New Zealand's Schools 3 PPP bundle, announced in 2017, which involved building and maintaining six school campuses serving over 5,000 students. The initiative, valued at approximately NZ$200 million, emphasized energy-efficient designs and was delivered by CPB Contractors in partnership with the Ministry of Education, highlighting CIMIC's focus on social infrastructure with performance-based payments tied to service levels. The project in , , advanced through the Pulse consortium in 2019, encompassing a A$5.4 billion package for 5.9 kilometers of twin tunnels, six new underground stations, and 20-year maintenance services. CIMIC subsidiaries CPB Contractors and UGL led the tunnelling and systems integration, with financing structured via and to mitigate public fiscal risk. Beyond PPPs, CIMIC pursues other ventures through s in specialized sectors. For instance, in , Sedgman and CPB Contractors formed a with for the Western Ridge Crusher project in , involving design and construction of a primary , 12-kilometer overland conveyor, and stockpiling systems valued at A$500 million. Similarly, , in , secured a 2023 contract for an 11-kilometer section of the North-South Commuter Railway in the , focusing on elevated viaducts and stations. These non-PPP collaborations extend CIMIC's reach into relocation and international rail, often sharing risks and expertise with partners like and local governments.

Financial Performance

CIMIC Group, originally established as Leighton Contractors in 1949 and listed on the in 1962, began with annual revenue of A$4 million that year, reflecting its early focus on small-scale contracting in . By 1972, revenue had expanded to a record A$58 million, accompanied by a net profit of A$1.74 million, driven by diversification into larger infrastructure and civil engineering projects amid post-war economic growth. This period marked the foundation of steady expansion, with the company capitalizing on 's developing resource and construction sectors. The saw accelerated growth during the resources boom, with operating profit rising from A$276.1 million in 2006 to A$450 million in 2007, fueled by services and international contracts. However, the 2011 acquisition by (a of Spain's ) introduced volatility; subsequent project disputes, cost overruns, and governance issues led to significant write-downs and reported losses, including negative EBIT figures exceeding A$1.6 billion in certain years around 2014-2015. The 2015 rebranding to CIMIC Group aimed to signal a fresh start, coinciding with operational restructuring that stabilized finances, as evidenced by net profits attributable to shareholders rebounding to A$620.1 million in 2020 and A$402.1 million in 2021. In recent years, has scaled to multi-billion levels amid recovery and new contracts in and , reaching A$13.4 billion in 2023 with a net profit of A$425 million, influenced partly by adjustments for equity investments. By 2024, sales climbed to A$16.8 billion, yielding net income of A$672.5 million, reflecting resilience despite cyclical pressures like material cost and project delays in resources sectors. Overall, CIMIC's financial demonstrates long-term —from tens of millions in the mid-20th century to over A$15 billion today—interrupted by acquisition-related disruptions but underpinned by diversified operations in high-value sectors, though profitability remains sensitive to contract execution and economic cycles.

Recent Results (2020–2025)

In 2020, CIMIC Group recorded revenue of A$13.57 billion and statutory net profit after tax (NPAT) of A$620 million, reflecting operational stability during the initial impacts of the on construction and resources sectors. Revenue grew by 8.3% to A$14.7 billion in 2021, supported by project execution in and markets, though statutory NPAT fell to A$402 million amid higher operating costs and provisions. The company was acquired by Australia Holdings (a subsidiary of ) and delisted from the Australian Securities Exchange on 11 May , shifting to private ownership while maintaining independent financial reporting. In the first quarter of , prior to delisting, reached A$2.3 billion with NPAT of A$108 million, aligning with pre-acquisition guidance. Revenue dipped to A$13.28 billion in 2023, influenced by project timing and regional market conditions in and . Performance rebounded in 2024, with revenue expanding 26.2% to A$16.76 billion and rising to A$673 million, driven by strengthened contracts in resources and public infrastructure. Half-year results for 2025 were published on 16 July 2025, continuing emphasis on work-in-hand visibility and sustainability-aligned revenue, though detailed metrics were incorporated into parent company disclosures.
YearRevenue (A$ billion)NPAT/ (A$ million)
202013.57620 (statutory NPAT)
202114.7402 (statutory NPAT)
202313.28-
202416.76673

Middle East Operations and Wage Disputes

CIMIC Group's operations were primarily conducted through joint ventures and subsidiaries, including Leighton Contractors Qatar WLL and BIC Contracting LLC in the , focusing on large-scale projects such as rail, highways, and buildings in and . These entities, often in partnership with local firms like Al Habtoor Group, secured contracts worth billions, including contributions to 's preparations for the , but faced escalating financial pressures from project delays, cost overruns, and regional economic challenges. By early 2020, CIMIC had written down its investments in these operations to zero, citing over $1 billion in unpaid debts and operational losses. In July 2020, Leighton Contractors Qatar collapsed into administration amid allegations of breaches of Qatari labor legislation, leaving hundreds of foreign workers—primarily from , and the —unpaid for months and stranded without repatriation funds or end-of-service benefits. The administrator, Ahmed, launched investigations into the subsidiary's practices, including wage withholding and failure to remit payments to workers' home countries, with total claims exceeding $370 million in denied wages, fees, and bank obligations. Over 350 legal actions were filed against the entity, highlighting systemic underpayment issues that affected more than 1,000 employees across and operations. Wage disputes intensified after CIMIC divested its stakes in February 2021, transferring ownership of BIC Contracting to local partners while disclaiming ongoing liability, a move criticized as abandoning workers to insolvent entities. By November 2021, CIMIC's CEO Juan Santamaria publicly addressed claims from former BIC Contracting employees seeking millions in back pay, asserting the company had fulfilled its obligations prior to divestment but engaging lawyers to process refunds. In December 2021, over 150 expatriate workers in initiated court actions against CIMIC affiliates, alleging ethical abandonment and violations of employment contracts, with some facing jail threats over unpaid debts. By March 2022, the drew widespread condemnation as a "humanitarian disaster," with reports detailing workers sleeping in unfinished project sites and selling possessions for survival, prompting CIMIC to hire firms to negotiate settlements via release deeds for partial refunds. These events contributed to a settled in December 2024 for $45.25 million, alleging CIMIC's failure to disclose the full extent of financial deterioration and underpayment risks prior to divestment. The disputes underscored vulnerabilities in CIMIC's practices, such as reverse factoring, which delayed payments to low-tier subcontractors and migrant laborers, exacerbating cash flow issues in high-risk markets.

Subcontractor and Financial Reporting Issues

In its operations, particularly through the BIC Contracting (BICC), in which CIMIC held a 45% stake, the company faced accusations of failing to remit hundreds of millions of dollars in payments owed to s, workers, and banks. These issues surfaced prominently in early 2020, coinciding with CIMIC's announcement of a $1.8 billion writedown on BICC and an injection of $US130 million to support the entity during its distressed sale, which was finalized in for a nominal 1 (approximately 37 cents). s and hundreds of foreign workers, primarily from and , reported unpaid wages, end-of-service benefits, and related obligations totaling estimates up to $370 million in denied wages across affected parties, leading to claims of a "humanitarian " with workers left in financial limbo. CIMIC maintained it did not control BICC and was collaborating with the buyer, Saudi Logistical Services (SALD), to address employee obligations while denying direct liability for payments. These payment shortfalls contributed to broader scrutiny, prompting CIMIC and its Middle East affiliate to engage lawyers in 2022 to process hundreds of underpayment claims and issue refunds to affected workers. Over 150 employees publicly accused CIMIC of abandoning them amid the fallout, exacerbating disputes tied to project insolvencies. The episode highlighted risks in CIMIC's international subcontracting model, where joint ventures and local partners managed day-to-day payments, though critics argued the parent company's oversight was insufficient given its equity stake and historical involvement. On financial reporting, CIMIC drew criticism for its use of reverse factoring arrangements, a technique where third-party financiers paid suppliers early in exchange for discounts, allowing CIMIC to extend payment terms while classifying the resulting bank obligations as payables rather than financing . Analysts at GMT Research alleged this practice inflated reported operating cash flows—potentially by reclassifying financing activities—and obscured underlying weaknesses, with estimates of $800 million in double-counted profits over two years, while Moody's flagged it as masking liquidity strains. CIMIC defended its reporting as fully audited and compliant with Australian accounting standards, asserting that cash generation remained robust independent of such mechanisms by 2019. These concerns fueled shareholder class actions, including one alleging CIMIC misled investors by under-disclosing reliance on controversial financing techniques that distorted representations. A separate action, led by Finney McDonald, targeted failures to adequately disclose risks in CIMIC's investments, linking back to the BICC payment scandals and project impairments. In December 2024, CIMIC settled the latter for $45.25 million in the without admitting liability, aiming to resolve claims related to market announcements on those investments. The settlements underscored skepticism over transparency in CIMIC's reporting of international exposures and financing practices, though the company maintained its disclosures met regulatory requirements.

Sustainability and Corporate Responsibility

Environmental and Safety Practices

CIMIC Group's environmental practices emphasize reducing operational impacts through structured management systems, with a focus on waste minimization, emissions reduction, and biodiversity protection. The company targets a waste reuse and recycling rate exceeding 75% across projects, alongside limiting landfill disposal to under 10% of generated waste. Supporting the Paris Climate Agreement goals, CIMIC commits to achieving net zero emissions, integrating climate risk assessments into project planning and pursuing decarbonization via fleet electrification and low-carbon technologies in subsidiaries like Thiess. In mining operations, Thiess has implemented emissions reduction targets, including a 25% cut in Scope 3 diesel combustion emissions by 2035 from operated fleets, complemented by biodiversity initiatives such as quoll movement studies at Mt Owen Mine since 2012 and tree-planting programs. Project-specific efforts include enhanced recycling of materials like cardboard, scrap metal, and timber at UGL's Hunter Power Project and fauna/flora protection training on CPB Contractors' NEWest Alliance works in 2022. Safety practices are governed by a group-wide policy prioritizing the elimination of fatalities and disabling injuries, with operating companies maintaining tailored health, safety, and wellbeing programs to address critical risks. Subsidiaries employ innovative tools, such as CPB Contractors' digitized real-time safety reporting systems introduced in 2023 for enhanced decision-making and risk mitigation. Performance metrics reflect a strong record, with Thiess achieving a Total Recordable Injury Frequency Rate (TRIFR) of 1.9 per million hours worked in 2024. Milestone achievements include Leighton Asia's Freeport project reaching seven million man-hours without lost time injuries in 2025 and the Birla Niyaara project logging 5.5 million safe man-hours as of April 2025. Independent assessments, such as Moody's 2022 review, affirm effective management of health and safety risks contributing to low injury rates. CPB Contractors further advances safety through critical risk removal via engineering innovations and mandatory training, including occupational hygiene workshops expanded in 2024.

Community and Ethical Initiatives

CIMIC Group engages in community initiatives primarily through its subsidiaries, focusing on local partnerships, education support, and environmental projects aligned with ESG goals. Subsidiaries such as Leighton Asia have donated educational supplies including books, notebooks, and pens to enhance student learning in underserved areas, as part of youth education investments reported in May 2025. In India, Leighton Asia launched a CSR program in March 2025 to combat plastic waste, reflecting efforts to promote environmental stewardship in operational regions. Thiess, another subsidiary, implements proactive community engagement plans, such as those in the Collinsville region since 2019, involving local collaboration to build social license. CPB Contractors supports Indigenous communities via projects like the M6 Stage 1, achieving milestones with Indigenous businesses and integrating cultural awareness training for employees and locals as of April 2024. Pacific Partnerships allocates community benefit funding to initiatives such as installations in new developments, enabling energy cost savings for residents, with progress noted in May 2025. Sedgman encourages employee for blood drives, charitable events, and environmental causes to foster social connections. These activities aim to expand cultural awareness and support in project vicinities. On ethical practices, CIMIC maintains a zero-tolerance policy for and corruption, enforced through a comprehensive that prohibits political donations and mandates in operations. The company operates an independent Ethics Line via Stopline for confidential reporting of unethical conduct by employees, subcontractors, and partners. CIMIC's policies emphasize high ethical standards across , , and . Regarding human rights, the group explicitly rejects modern slavery and commits to mitigating risks in its through assessments and remediation processes. These measures align with broader , where 82% of 2024 revenue was linked to projects supporting UN , including community-focused outcomes.

References

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