Civmec Posts A$502.9M Revenue, EBITDA Falls 11% Amid Market Headwinds

Financial Performance Overview

Civmec Limited has reported a steady financial performance for the half-year ended 31 December 2024, with revenue climbing modestly by 2.2% to A$502.9 million. Despite this top-line growth, earnings before interest, tax, depreciation, and amortisation (EBITDA) fell by 11.2% to A$52.9 million, reflecting margin pressures in a competitive market environment. The EBITDA margin contracted by 1.6 percentage points to 10.5%, while net profit after tax (NPAT) declined 16.9% to A$26.5 million.

Notably, Civmec’s net asset value per share rose 13.6% to 97.9 cents, underscoring a strengthened balance sheet and enhanced shareholder equity. Earnings per share (EPS) decreased to 5.2 cents from 6.3 cents in the prior corresponding period, yet the company maintained its interim dividend at 2.5 cents per share, signalling confidence in its cash flow stability and commitment to shareholder returns.

Operational Highlights and Strategic Progress

The company’s operational momentum remains robust, highlighted by the successful completion of the Boorloo Bridge project, a complex infrastructure endeavour involving extensive steel fabrication and in-river works. This achievement not only demonstrates Civmec’s engineering capabilities but also contributed to the conditional upgrade of its bridge-building accreditation to the highest B4 level in Australia.

Civmec also earned the Australian Steel Institute’s National Steel Excellence Award for its innovative modular fabrication on the Shiploader and Berth Replacement Project, reflecting its leadership in integrating advanced building information modelling and sustainable construction practices.

Further strengthening its market position, Civmec secured key contracts including the design and construction of a major shiploader for a Western Australian port and fabrication works for BHP’s Port Hedland operations. The company’s expanding balance machine design team and framework agreement with BHP for Western Australia Iron Ore projects signal ongoing growth opportunities in resource infrastructure.

Market Conditions and Outlook

While tendering activity remains historically high with opportunities nearing A$12 billion, Civmec has observed delays and rescheduling of project awards, which may temper activity levels in the second half of FY25 and potentially into early FY26. The company is actively managing these headwinds while maintaining a strong pipeline of projects across energy, resources, infrastructure, and defence sectors.

Significantly, Civmec is advancing the ownership transfer of Luerssen Australia, which builds offshore patrol vessels for the Royal Australian Navy. This strategic move, expected to complete by July 2025, is designed to enhance operational efficiencies and expand Civmec’s shipbuilding footprint.

Sustainability and Community Engagement

On the environmental front, Civmec has installed a 600KW solar PV system at its Newcastle facility, aiming to reduce carbon emissions by 40%. The company also continues its community support through employee donations, volunteering, and partnerships with local charities, reinforcing its commitment to social responsibility alongside business growth.