Bisalloy Steel Group (BIS) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 31 Dec 2024 was $70.9m, down 7.5% year-over-year due to lower domestic demand, steel prices, and export shipment delays.

• Profit after tax rose to $9.0m from $8.5m year-over-year, reflecting improved margins from a more profitable product mix and reduced energy costs.

• Net profit after tax attributable to members rose 5.2% to $8.73m, reflecting improved margins and cost reductions.

• Bisalloy maintained absolute margins despite a broad decline in steel prices and softer Australian demand, aided by lower freight, electricity, and gas costs.

• The group operates in Australia, Indonesia, Thailand, and has a joint venture in China, all contributing positively to profitability.

Financial highlights

• Gross profit increased to $21.0m from $19.4m year-over-year.

• Operating EBITDA (excluding FX) increased 4.6% to $14.66m year-over-year.

• Net operating cash inflow was $1.8m, compared to an outflow of $1.0m in the prior period.

• Net cash at 31 Dec 2024 was $3.4m, compared to net debt of $11.7m at 31 Dec 2023.

• Interim dividend of 8.0 cents per share declared; special dividend of 13.0 cents declared and recognized as a liability.

Outlook and guidance

• Order book indicates strong profit momentum to continue in H2 FY25.

• Majority of the Australian SSN-AUKUS Hull Steel Qualification contract expected to be completed in H2 FY25.

• Two sensor product trials to be completed in the next few months, with results expected in six months.