Big River Industries (BRI) H1 2025 earnings summary

Executive summary

• Revenue for 1H FY25 was AUD 211.5 million, down 3.3% year-over-year but up 8.0% sequentially, reflecting ongoing softness in residential construction markets.

• Gross profit margin remained flat year-over-year and improved 76 basis points sequentially, supported by proactive margin initiatives and product mix.

• EBITDA (before significant items) was AUD 14.8 million (7.0% margin), down 26% year-over-year but up 17.5% from the previous half, indicating early signs of recovery.

• Net profit after tax before significant items was AUD 2.5 million, a 63.8% decrease year-over-year; after a AUD 20 million non-cash impairment, statutory NPAT was a loss of AUD 17.0 million.

• Interim fully franked dividend of AUD 0.02 per share declared, with a 69.4% payout ratio.

Financial highlights

• Revenue for the half was AUD 211.5 million, down 3.3% year-over-year and 9% like-for-like.

• Gross profit was AUD 55.7 million, down 3.6% year-over-year, with gross margin flat year-over-year and up 76 bps sequentially.

• EBITDA was AUD 14.8 million, down 26% year-over-year but up 17.5% sequentially.

• Working capital managed at 17.7% of revenue; cash conversion at 78%.

• Net debt increased to AUD 29.6 million, with a gearing ratio of 22.8%.

Outlook and guidance

• Market conditions expected to remain challenging in the short term, especially in residential sectors in NSW, Victoria, and New Zealand.

• Queensland anticipated to show stronger growth; New Zealand expected to improve with lower interest rates and a stronger project pipeline.

• Medium to long-term outlook remains positive, supported by population growth, low vacancy rates, and government housing initiatives.

• Modest market growth expected in the short term, with acceleration anticipated into FY2026 and beyond.

• 1HFY25 revenue up 8.0% sequentially from 2HFY24, indicating potential market cycle stabilisation.