Big River Industries (BRI) H2 2025 earnings summary

Executive summary

• Revenue declined 2.3% year-over-year to $405.1m, reflecting challenging market conditions, but showed improvement in the second half as stabilization and cost reduction efforts took effect.

• Underlying EBITDA fell 11.9% to $28.7m, with a 10.6% rebound in 2H25 driven by efficiency initiatives and cost control.

• Gross profit margin increased by 20bps to 26.2% due to pricing discipline and supply chain efficiencies, despite softer volumes and competition.

• Cash conversion remained strong at 100.1%, and gearing was stable at 20.1%, supporting investment flexibility.

• Final dividend of 2.0c per share declared, totaling 4.0c for FY25, representing an 80% payout ratio.

Financial highlights

• Revenue: $405.1m, down 2.3% year-over-year; like-for-like revenue down 6.6%.

• Underlying EBITDA: $28.7m, down 11.9% year-over-year; EBITDA margin 7.1%.

• Underlying NPAT: $4.3m, down 48.6% year-over-year; statutory NPAT: $(14.7)m, impacted by a $20m impairment charge.

• Gross profit margin: 26.2%, up 20bps year-over-year.

• Operating expenses increased 2.9% for the year, but declined 2.7% in 2H25 due to cost initiatives.

Outlook and guidance

• Residential market remains soft in early FY26, but modest recovery is expected as the year progresses.

• Commercial market activity stable with strong project pipelines, especially in Queensland, expected to be the fastest-growing market due to infrastructure and Olympics-related investment.

• FY26 priorities: market share growth in differentiated segments, margin improvement, operational enhancements, ERP rollout, and disciplined capital allocation.

• Long-term targets: revenue above market growth, gross profit margin growth, EBITDA margin above 10%, working capital to revenue below 20%, and 50%-70% dividend payout.