Capital (CAPD) H1 2025 earnings summary

Executive summary

• H1 2025 revenue declined 6% year-over-year to $159.2 million, with operational turnaround in Q2, improved cash flow, and reduced net debt.

• Adjusted EBITDA was $32.1 million (20.2% margin), and net profit after tax rose 54% to $14.8 million, driven by $19.2 million in investment gains; adjusted NPAT fell 82% to $2.1 million.

• Interim dividend maintained at 1.3 cents per share, reflecting confidence in outlook and strong cash from operations.

• Operational highlights include world-class safety, increased rig count and utilisation, and record MSALABS revenue.

Financial highlights

• Revenue: $159.2 million (down 6% year-over-year); adjusted EBITDA: $32.1 million (20.2% margin); operating profit: $16.2 million (down 35.2%).

• Cash from operations increased to $54.7 million (up 6.8% year-over-year); capex for H1 at $20.4 million, trending toward lower end of annual guidance.

• Net debt reduced to $55.4 million, with net debt/EBITDA at 0.8x and net debt/equity at 0.19x.

• Investment portfolio gained $19.2 million in H1, valued at $49.5 million at June 30.

• Shareholder equity increased to $285.6 million from $267.9 million year-over-year.

Outlook and guidance

• Full-year 2025 group revenue guidance raised to $320–340 million, with MSALABS expected at $55–65 million.

• Margins expected to recover in H2 2025, with improved performance in drilling, mining, and laboratory divisions.

• Capex expected at lower end of $45–55 million guidance.

• Strong tendering pipeline and ramp-up of new contracts, especially at Reko Diq and MSALABS.

• Market conditions for mining and gold services remain highly favorable, with increased exploration and mine site activity.