Bhagwan Marine (BWN) H1 2026 earnings summary

Executive summary

• Revenue for the half-year was AUD 116.9 million, down between 8.5% and 24% year-over-year due to timing of major contract awards and market conditions.

• EBITDA margin improved to 19% from 18% in the prior period, with EBITDA at AUD 22.4 million.

• Strong operating cash flow of AUD 25.4 million, up 21% year-over-year, and free cash flow of AUD 8.6 million.

• Interim fully franked dividend of 0.5 cents per share declared, reflecting confidence in outlook.

• Acquisition of Riverside Marine Holdings announced, expected to be highly accretive, diversifying revenue streams and enhancing scale.

Financial highlights

• Revenue: AUD 116.9 million, down between 8.5% and 24% year-over-year.

• Pro forma EBITDA: AUD 22.4 million, down up to 18% year-over-year; EBITDA margin 19%.

• Gross profit margin improved to 35% from 28% in 1H25.

• Net profit after tax was between AUD 2.9 million and AUD 3.2 million, down over 65% year-over-year.

• Net debt to equity at 1%, with net financial debt minimal at around AUD 1 million.

Outlook and guidance

• Focus on margin-led earnings quality, improved fleet utilisation, and converting a strong pipeline of opportunities into contracted work.

• Riverside acquisition forecasted to deliver EPS accretion of ~14%, ROE accretion >20%, and group EBITDA margins to expand from 18% to 24% in FY 2026.

• Positive long-term industry outlook supported by supply-demand imbalance and limited new vessel builds.

• Integration of Riverside Marine Holdings acquisition is a key priority, expected to enhance scale and diversification.

• Strong opportunity pipeline and confidence in trajectory through FY 2026 and beyond.