Civmec Reports 1H FY25 Revenue of A$502.9M with A$12B+ Order Pipeline

Strong Financial Performance and Dividend

Civmec Limited has reported a robust first half for FY25, delivering revenue of A$502.9 million, supported by an EBITDA of A$59.6 million and a net profit after tax (NPAT) of A$31.9 million. The company declared an interim dividend of 2.5 cents per share, reflecting a payout ratio of 48%, signaling confidence in its ongoing cash flow generation and financial health.

The balance sheet remains strong with net assets of A$497 million and a net asset value per share of 97.9 cents. Cash receipts surged to A$104 million in January 2025, highlighting improved conversion of contract assets to cash in the second half of FY25. Civmec’s franking credit balance of A$57.5 million further enhances shareholder returns.

Diverse Sector Exposure and Project Pipeline

Civmec’s multidisciplinary engineering and construction services span energy, resources, infrastructure, marine, and defence sectors. The company’s project portfolio includes marquee works such as the Wheatstone project, Iron Bridge Magnetite Project, and significant infrastructure projects like the Boorloo Bridge and Perth Kids Bridge.

Looking ahead, Civmec boasts a priced opportunity pipeline exceeding A$12 billion, excluding its expanding naval shipbuilding prospects. This pipeline is bolstered by long-term agreements with major clients including BHP, Chevron, and Woodside Energy, alongside maintenance and capital works contracts across multiple Australian states.

Strategic Naval Shipbuilding Expansion

A key highlight is Civmec’s strategic move into naval shipbuilding, marked by the Heads of Agreement to acquire Luerssen Australia, pending Commonwealth approval, with an estimated transfer date of 1 July 2025. This acquisition aligns with the Australian Government’s multi-billion-dollar investment to expand Fleet Base West and the Henderson precinct, consolidating Civmec’s position in sovereign maritime security projects.

The company has recommenced shipbuilding activities on the Offshore Patrol Vessel (OPV) program and is poised to benefit from the Defence Strategic Review’s focus on Western Australia. Civmec’s joint venture with Austal for the LAND8710 Phase 2 (Heavy) program further underscores its commitment to defence sector growth.

Material Handling OEM Division Growth

Civmec is uniquely positioned as Australia’s only company offering a complete in-house solution for material handling equipment, from design through to maintenance and spares management. The OEM division currently has three machines in various design or manufacturing phases, including shiploaders and reclaimers for major clients like BHP and Alcoa.

The division’s robust pipeline now exceeds A$2.8 billion, driven by an anticipated 30-40 new or major refurbishment projects over the next decade. The design team has expanded to 60 designers, reflecting strong market demand and Civmec’s growing expertise in this niche.

Sustainability and Operational Excellence

Civmec continues to invest in sustainability initiatives, including a solar PV installation at its Newcastle facility expected to reduce greenhouse gas emissions by 30% annually. The company also maintains a strong community engagement program through donations and volunteer efforts.

Operationally, Civmec benefits from an experienced executive team with equity stakes, an agile organisational structure, and a strategic focus on revenue growth through maintenance and infrastructure panel awards. The recent achievement of conditional B4 bridge accreditation unlocks further high-value infrastructure opportunities.