Bhagwan Marine (BWN) H1 2026 earnings summary

Executive summary

• Revenue for the half-year was AUD 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%, with EBITDA at AUD 22.4 million, reflecting disciplined execution and cost management.

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

• Interim dividend of 0.5 cents per share declared, fully franked, with payment scheduled for April 2026.

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

Financial highlights

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

• Pro forma EBITDA of AUD 22.4 million, down 4.3% to 18% year-over-year; EBITDA margin 19%.

• Net profit after tax was AUD 2.9–3.2 million, down 65.6% to 67% year-over-year.

• Operating cash flow up 21% to AUD 25.4 million; free cash flow rose to AUD 8.6 million.

• Net debt to equity at 1% (excluding operating leases); 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 forecast to deliver EPS accretion of ~14% and ROE accretion >20% in FY26, with group EBITDA margins projected to expand from 18% to 24%.

• FY26 has started positively with steady activity and a strong opportunity pipeline in decommissioning, offshore wind, ports, and defense sectors.

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

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