Engineering and construction company Downer EDI expects the rest of this financial year will remain a period of consolidation for the business, rather than growth.
But the maker of passenger and freight trains still expects to meet its financial guidance for the full year.
Downer says the 2013/14 financial year so far has been marked by a reduction in new resources sector projects, mining customers cutting their costs, and pressure on government spending on road and rail maintenance.
"As a result, 2014 has so far been a year of consolidation rather than growth, and this is expected to continue through the full year," Downer said on Tuesday.
"That said, the performance of the group in the first half of the year, including the focus on costs and efficiency, suggests that Downer is on track to meet its forecast NPAT (net profit after tax) of around $215 million for the 2014 financial year."
Downer's profit grew in the first six months of 2013/14 despite a slide in earnings across its infrastructure, mining and rail businesses.
Its net profit of $99.1 million was up 5.4 per cent from $94 million in the prior corresponding period.
But pre-tax earnings slid more than five per cent to $160.1 million, from $169.3 million.
Earnings from the rail division were down more than 86 per cent due to the near-completion of the Waratah Train Project, under which Downer is supplying 78 new passenger trains to NSW.
Earnings fell almost 15 per cent in its infrastructure division and just over seven per cent in the mining division, owing to the completion of several projects.
Downer said it was focusing on improving productivity and cutting costs to offset the fall in earnings.
Uncertainties still existed in Downer's markets, but there had been some recent slight improvements as work that had been previously stopped was resumed, chief executive Grant Fenn said.
But fierce competition made it hard to win work and bid margins were lower.
Mr Fenn said Downer's diversity meant it was not reliant on one sector for earnings.
"I think it's swings and roundabouts, and I think across the range of things that we do in Australia, New Zealand and elsewhere, we've got a very good coverage of where growth will be in the economy," he said.
Downer shares were nine cents lower at $4.77 at 1210 AEDT.