Babylon Pump & Power Surges with $1.8M Cash Flow and $3M EBITDA in H1 FY25

Strong Financial Performance Amid Sector Headwinds

Specialist mining services provider Babylon Pump & Power Ltd (ASX: BPP) has reported a resilient first half of fiscal year 2025, delivering positive operating cash flow of $1.8 million in the second quarter and maintaining an EBITDA of $3.0 million. Despite a temporary setback in the nickel sector, which impacted rental equipment demand, the company achieved a net profit after tax of $0.4 million, marking progress toward consistent earnings growth.

Managing Director Michael Shelby highlighted the company’s prudent management approach during the nickel market slowdown, noting that while some rental equipment was returned and projects delayed, Babylon maintained profitability and cash generation. The outlook for the second half of FY25 is optimistic, with expectations of increased revenue driven by test pumping activities and redeployment of equipment to new rental projects.

Operational Highlights and Growth Initiatives

Babylon’s rental segment faced challenges with the temporary closure of BHP’s Nickel West Mt Keith mine, but the company swiftly mobilised its highwall pump at a major Western Australian gold mine, showcasing its specialty water management solutions. The newly established Australian distributorship with Brazil-based HIGRA Industrial has already generated first orders worth approximately $0.5 million, opening doors to multiple sectors and new client opportunities.

In the maintenance segment, operational efficiencies have driven EBITDA growth despite a lower revenue base. Contracts secured with major miners, including an extension with Rio Tinto for repair services until mid-2027, underpin a strong pipeline of activity. Both Babylon’s Western Australia and Queensland workshops continue to see high demand across coal, iron ore, and gold sectors.

Financial Position and Strategic Outlook

Babylon’s balance sheet remains robust, with $4.4 million in undrawn finance facilities and $4.4 million in trade receivables from a blue-chip client base, providing ample liquidity to support ongoing growth. The company continues to pursue acquisition opportunities to expand its specialist equipment capabilities and scale within the resource sector’s water management services.

The Board expressed satisfaction with the improvements in cash flow, safety, and strategic execution, emphasizing Babylon’s commitment to organic growth and asset acquisition. With positive momentum entering the second half of FY25, the company is well-positioned to capitalise on market opportunities and strengthen its foothold in the mining services industry.