Bhagwan Marine (BWN) H1 2026 earnings summary

Executive summary

• Revenue for the half-year was $116.9 million, down 8.5% to 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 $22.4 million.

• Operating cash flow rose 21% year-over-year to $25.4 million, with free cash flow of $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, diversify revenue, and enhance recurring revenue streams.

Financial highlights

• Revenue was $116.9 million, down 8.5% to 24% year-over-year, mainly due to contract phasing.

• Pro forma EBITDA was $22.4 million, down up to 18% year-over-year, with margin rising to 19%.

• Net profit after tax was $2.9 million to $3.2 million, down 65% to 67% year-over-year.

• Operating cash flow up 21% to $25.4 million; free cash flow rose to $8.6 million from $1 million.

• Net debt to equity at 1% (excluding leases); net financial debt minimal at $1 million.

Outlook and guidance

• Positive outlook for 2H26 and beyond, with strong opportunity pipeline and margin expansion focus.

• Riverside acquisition forecast to deliver EPS accretion of ~14% and ROE accretion >20% in FY26, with group EBITDA margin projected to expand from 18% to 24%.

• Integration of Riverside Marine expected to unlock synergies and drive sustainable earnings growth.

• Focus on operational efficiency, cost control, and procurement optimisation.

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