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 more than doubled to AUD 8.8 million, reflecting strong operational performance and project completions.

• IPO in July 2024 raised up to AUD 80 million, reducing net debt to AUD 11.5 million and positioning the company as the largest listed Australian marine solutions provider.

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

• Enhanced leadership team and continued focus on safety, innovation, and sustainability initiatives.

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 to 3.39 cents.

• Operating cash flow increased 64% to AUD 21 million; net debt reduced by up to 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 FY25 outlook with robust tendering pipeline, sustained demand from energy, subsea, and defence sectors, and anticipated growth in decommissioning, offshore wind, and larger vessel markets.

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

• Focus on innovation in remote and hybrid vessel operations, disciplined capital allocation, and cost management amid inflationary pressures.

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

• Strategy includes targeted acquisitions and optimising contract mix.