Civmec (ASX:CVL) H2 2025 earnings summary

Executive summary

• Achieved revenue of A$810.6m and NPAT of A$42.5m for FY25, with a final dividend of 3.5c declared, totaling 6.0c for the year.

• Revenue for FY2025 declined 21.6% year-over-year to A$810.6 million, mainly due to reduced activity following major contract completions.

• Net profit attributable to shareholders fell 34.0% to A$42.5 million, impacted by lower revenue and higher administrative expenses.

• Maintained a robust order book of A$1.25b as of 31 July 2025 and a net cash position of A$42.9m.

• Completed the strategic acquisition of Luerssen Australia Pty Ltd, enhancing naval shipbuilding capabilities.

Financial highlights

• EBITDA reached A$91.7m with an 11.3% margin; net profit margin was 5.2%.

• Gross profit for FY2025 was A$92.9 million, down 21.9% from A$119.0 million in FY2024.

• Operating cash flow was A$97.8m; net assets stood at A$530.5m (A$1.04 per share).

• Cash and cash equivalents increased to A$102.9 million from A$88.5 million, reflecting improved working capital management.

• Administrative expenses rose 10% year-over-year, primarily from listing and consultant fees related to the change in domicile.

Outlook and guidance

• Entering FY26 with a strong pipeline across energy, resources, and infrastructure sectors.

• Market conditions have led to delays in project awards and rescheduling, impacting activity in 2H FY25 and 1H FY26.

• Expecting uplift in activity in 2H FY26, with medium-term confidence supported by low-carbon economy opportunities and regional expansion.

• Acquisition of Luerssen Australia Pty Ltd is expected to boost Infrastructure and Defence segment activity.

• Attractive dividend yield of 5.2% (7.4% with franking credits) and compelling valuation relative to peers.