Civmec (ASX:CVL) H1 2025 earnings summary

Executive summary

• Civmec is a multidisciplinary Australian engineering and construction company serving energy, resources, infrastructure, marine, and defence sectors, with a strong track record since 2009 and a growing national footprint.

• Major facilities in Henderson, Port Hedland, Gladstone, and Newcastle support a robust pipeline of projects and client engagement.

• Completed a major corporate restructure, redomiciling from Singapore to Australia effective 4 Sep 2024, aligning with operational focus and enhancing local project eligibility.

• Board strengthened with new independent directors and a focus on operational excellence and growth opportunities.

Financial highlights

• 1H FY25 revenue reached A$502.9m, up from A$418.9m in 1H FY24.

• EBITDA for 1H FY25 was A$59.6m, compared to A$53.0m in 1H FY24.

• Net profit for 1H FY25 was A$26.5m, down from A$31.9m year-over-year, due to lower gross margins and higher administrative expenses.

• Interim fully franked dividend of 2.5c declared, with a payout ratio of 48%.

• Net assets at 31 December 2024 were A$497m, with net asset value per share of 97.9c.

Outlook and guidance

• Secured work for FY25 in the energy sector indicates over 100% growth compared to FY24.

• Robust pipeline and order book with A$12 billion in priced opportunities, excluding expanding naval prospects.

• Increased conversion of contract assets to cash expected in 2H FY25.

• Directors believe the company can pay its debts as they become due.

• Ongoing due diligence for the acquisition of Luerssen Australia Pty Ltd, with completion targeted by 1 July 2025.