Bhagwan Marine (BWN) H1 2025 earnings summary

Executive summary

• Achieved record half-year revenue of AUD 154.1 million, up 41% year-over-year, and pro forma EBITDA of AUD 27.3 million, up 32%, driven by strong demand and a major decommissioning project.

• Net profit after tax rose to AUD 9.3 million, more than doubling year-over-year, supported by strong operational performance and project completions.

• IPO in July 2024 raised AUD 76.8 million, reducing net debt to AUD 11.5 million and making the company the largest listed Australian marine solutions provider.

• Expanded into new growth sectors including offshore wind and defence, leveraging a diversified fleet and national presence.

• No interim dividend declared for the period.

Financial highlights

• Revenue increased 41% to AUD 154.1 million; pro forma EBITDA up 32% to AUD 27.3 million.

• Net profit after tax rose 102% to AUD 8.8 million; basic EPS up 15% to 3.39 cents.

• Net cash from operations increased 64% to AUD 21 million; net debt reduced by 87% to AUD 11.5 million post-IPO.

• Core EBITDA margin at 18%; gross profit margin at 28%.

• Administrative expenses as a percentage of revenue improved to 11% from 13% year-over-year.

Outlook and guidance

• Strong activity levels and robust tendering pipeline expected to continue into FY25, with positive long-term industry outlook and supply-demand imbalance supporting higher vessel rates.

• Growth anticipated in decommissioning, offshore wind, defence, maintenance, and larger vessel markets.

• Day rates expected to rise due to constrained vessel supply and high new build costs.

• CapEx expected to be significantly lower in the second half of FY25.

• Focus on safety, service delivery, fleet upgrades, and disciplined capital allocation.