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, but underlying demand and opportunity pipeline remain strong.

• EBITDA margin improved to 19% from 18% year-over-year, with pro forma EBITDA at AUD 22.4 million.

• Operating cash flow increased 21% to AUD 25.4 million, and free cash flow rose to AUD 8.6 million.

• Interim fully franked dividend of 0.5 cents per share declared, with continued investment in growth and innovation.

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

Financial highlights

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

• Pro forma EBITDA: AUD 22.4 million, down up to 18% year-over-year; EBITDA margin improved to 19%.

• Net profit after tax: AUD 2.9 million to AUD 3.2 million, down about 65% to 67% year-over-year.

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

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

Outlook and guidance

• Positive outlook for 2H26 and beyond, with a strong opportunity pipeline and focus on margin-led earnings quality, operational efficiency, and market penetration.

• Riverside Marine acquisition expected to deliver EPS accretion of ~14%, ROE accretion >20%, and group EBITDA margins expanding from 18% to 24% in FY26.

• Integration of Riverside Marine is a key priority, expected to unlock synergies and drive sustainable growth.

• Focus on disciplined capital allocation, free cash flow generation, and maintaining a strong balance sheet.