Big River Industries (BRI) H1 2025 earnings summary

Executive summary

• 1H FY25 revenue was $211.5m, down 3.3% year-over-year and 9.0% lower on a like-for-like basis, but up 8.0% sequentially from 2H FY24, reflecting ongoing softness in residential construction and some market stabilisation.

• EBITDA before significant items was $14.8m (margin 7.0%), down 26.0% year-over-year but up 17.5% from 2H FY24, indicating early signs of recovery and operational efficiencies.

• Net profit after tax before significant items was $2.5m, a 63.8% decrease year-over-year; statutory NPAT was a loss of $17.0m due to a $20.0m non-cash impairment.

• Interim dividend of 2.0 cents per share, fully franked, was declared, with a 69.4% payout ratio.

• Operational focus on cost management, pricing discipline, and efficiency initiatives supported performance in a challenging market.

Financial highlights

• Gross profit margin was flat year-over-year at 26.4%, but improved by 76 bps sequentially, supported by pricing and supplier consolidation.

• Cash conversion was 78.4%, down from 98.0% in 1H FY24, with working capital to revenue ratio at 17.7%.

• Net debt increased by $2.0m to $29.6m, with a gearing ratio of 22.8%.

• Basic EPS was $(19.91) cents, compared to 8.54 cents in 1H FY24.

• Net assets were $100.4m as at 31 Dec 2024, down from $119.2m at 30 Jun 2024.

Outlook and guidance

• Short-term market conditions expected to remain challenging, especially in residential sectors in NSW, Victoria, and New Zealand.

• Queensland and New Zealand anticipated to show stronger growth as interest rates fall and project pipelines strengthen.

• 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.

• Continued focus on organic growth, acquisitions, and operational efficiencies.