Bhagwan Marine (BWN) H2 2026 earnings summary

Executive summary

• FY 2026 net revenue was AUD 235.9 million, down 16.6% year-over-year, with a 4-year CAGR of 15%.

• Completed transformational acquisition of Riverside Marine, expanding national footprint and recurring revenue base, with Riverside contributing AUD 15.1 million revenue in FY26.

• Pro forma EBITDA was AUD 46.1 million, down 9% year-over-year, but margin improved to 20% from 18%.

• Strong cash generation with cash from operations up 9.6% to AUD 40 million and cash conversion at 90%.

• Declared fully franked dividends totaling AUD 0.8 per share for FY 2026.

Financial highlights

• Net revenue declined mainly due to project deferrals, non-recurrence of a major decommissioning project, and TVI project wind-down.

• Recurring revenue increased to 56% of group revenue, and to 62% on a pro forma basis post-acquisition.

• Riverside Marine contributed AUD 15.1 million revenue and AUD 6.1 million EBITDA in Q4.

• Pro forma free cash flow reached AUD 8.3 million, with strong 90% cash conversion.

• Net tangible assets per share were AUD 0.42; annualized return on assets was 5.8%.

Outlook and guidance

• Activity and tender levels strengthened in May and June, with strong revenue continuing into July.

• No formal FY 2027 guidance, but consensus EBITDA expected to combine Riverside's AUD 25 million and core business's AUD 40 million.

• Pipeline of opportunities remains robust, with positive momentum in defense, decommissioning, and energy transition sectors.

• Industry fundamentals remain supportive, with tight vessel supply underpinning rates and asset values.

• Integration of Riverside Marine on track, with opportunities to increase volumes and earnings.