Boom Logistics reports robust 3Q FY25 results with revenue and profit gains led by renewables projects, while pausing its share buy-back after meeting targets.
- 3Q FY25 revenue rises to $65m, driven by windfarm projects
- EBITDA grows 12% YTD to $37.5m on improved margins and cost control
- Net profit after tax up $2.6m YTD to $6.8m operationally
- Net debt at $104m with gearing steady at 44%, within target range
- On-market share buy-back paused after $2m returned; FY25 guidance reaffirmed
Strong Revenue Growth Fueled by Renewables
Boom Logistics Limited (ASX: BOL) has delivered a solid trading update for the three months ended 31 March 2025, continuing its momentum in the renewables sector. The company reported 3Q FY25 revenue of $65 million, a $5 million increase over the prior corresponding period, primarily driven by heightened activity in windfarm projects. Year-to-date revenue reached $197 million, underscoring Boom’s expanding footprint in renewable energy infrastructure, including windfarm construction and transmission line works.
Improved Profitability and Operational Efficiency
EBITDA for 3Q FY25 rose to $12.1 million, up $3 million from the previous year’s quarter, reflecting tight cost management and enhanced asset and labour utilisation during the typically slower holiday season. Year-to-date EBITDA climbed 12% to $37.5 million, driven by improved margins. Operational net profit after tax (NPAT) increased by $2.6 million to $6.8 million, while statutory NPAT stood at $20.8 million, boosted by $14 million in deferred tax benefits.
Operational metrics also highlight Boom’s efficiency gains, with labour efficiency at 85% for the quarter and asset utilisation at 83%, both slightly tempered by seasonal factors but maintaining strong overall performance. Notably, the company reported zero lost time injuries (LTIs) during the period, reinforcing its commitment to safety.
Balance Sheet and Capital Management
Boom’s net capital expenditure for 3Q FY25 was $5.7 million, lower than previous quarters, with all assets now fully deployed. Net debt increased to $104 million, attributed to working capital timing, while gearing remained within the company’s target range at 44%. The on-market share buy-back program, which has returned $2 million to shareholders, has been paused after reaching its FY25 target. The company signaled a future capital return policy likely to blend buy-backs with unfranked dividends, subject to board approval and prevailing circumstances.
Robust Pipeline and Strategic Outlook
Operationally, Boom secured over $35 million in new contracts and renewals year-to-date, benefiting from a diversified pipeline spanning renewables, infrastructure, resources, and industrial sectors. The company highlighted a 33% increase in scope at the Clarke Creek wind farm project in Northern Queensland, exemplifying its growing role in Australia’s energy transition. CEO Ben Pieyre emphasized the company’s strategic focus on high-growth sectors and its ambition to improve returns on net assets from 10% towards 15% over the near to medium term.
FY25 guidance was reaffirmed, with expected revenue of $263 million, EBITDA of $51 million, operational NPAT of $9 million, and statutory NPAT of $23 million, inclusive of deferred tax benefits. This steady outlook reflects confidence in the company’s ability to leverage its existing work pipeline and capitalize on emerging opportunities.
Bottom Line?
Boom Logistics’ strong renewables-driven growth and disciplined capital management set the stage for sustained shareholder returns amid evolving market dynamics.
Questions in the middle?
- How will Boom balance future capital returns between buy-backs and dividends amid market uncertainties?
- What impact will deferred tax benefits have on Boom’s longer-term profitability and cash flow?
- Can Boom sustain its labour and asset utilisation rates as it scales operations into FY26?