Civmec Reports $285M Contract Boost, $760M Order Book in Q3 FY25
Civmec Limited has reported a robust Q3 FY25 with a $285 million boost to its order book, now exceeding $760 million, while positioning itself for significant naval shipbuilding opportunities through strategic acquisitions and government-backed projects.
- Order book surpasses $760 million after $285 million in new contract awards
- Tender pipeline stands at $13.2 billion excluding naval prospects
- OEM balanced machines division grows rapidly with multiple projects underway
- Strategic acquisition of Luerssen Australia underway to enhance shipbuilding capabilities
- Strong financial metrics with 10.9% EBITDA margin and 5.2% NPAT margin for 9 months FY25
Robust Contract Wins Drive Order Book Growth
Civmec Limited has delivered a strong operational and financial update for Q3 FY25, highlighted by a $285 million increase in contract awards that has lifted its order book to over $760 million. This growth underscores the company’s expanding footprint across energy, resources, infrastructure, marine, and defence sectors. With tendered works now totaling an impressive $13.2 billion, excluding naval projects, Civmec is well positioned to capitalize on a broad pipeline of opportunities.
Expanding OEM Balanced Machines Division
The company’s unique OEM balanced machines division continues to gain momentum, growing from a small team of six to approximately 70 personnel within 18 months. Civmec is currently advancing four major machines in various stages of design and manufacture, including shiploaders for industry giants like BHP and Port Waratah, and a reclaimer for Alcoa. This division taps into a $2.8 billion pipeline of new and refurbishment projects, reinforcing Civmec’s competitive edge in heavy engineering solutions.
Strategic Moves in Naval Shipbuilding
Naval shipbuilding is emerging as a key growth avenue for Civmec, bolstered by the Australian government’s multi-billion-dollar investment to expand Fleet Base West and the Henderson Precinct. The company is progressing a conditional acquisition of Luerssen Australia, which would bring in-house design capabilities and enhance Civmec’s shipbuilding capacity. This strategic move aligns with anticipated future naval programs, including the construction of landing craft, frigates, and large optionally crewed surface vessels, positioning Civmec as a pivotal player in Australia’s sovereign maritime security efforts.
Financial Strength and Dividend Track Record
Financially, Civmec maintains solid performance with a 10.9% EBITDA margin and a 5.2% net profit after tax margin for the nine months ended FY25. Net tangible assets stand at 99.45 cents per share, reflecting reinvestment into world-class infrastructure. The company also declared a 2.5 cent interim dividend in April 2025, continuing a consistent dividend payout history totaling A$105.5 million since FY18.
Sustainability and Workforce Development
Beyond financials and contracts, Civmec is advancing its ESG commitments with initiatives such as the installation of a 600kW solar PV system at its Newcastle facility and plans for further renewable energy projects. The company also invests in its future workforce through engineering internships and graduate programs, underscoring a long-term vision for sustainable growth and innovation.
Bottom Line?
Civmec’s expanding order book and strategic naval ambitions set the stage for a transformative growth phase, contingent on regulatory approvals and market dynamics.
Questions in the middle?
- Will the acquisition of Luerssen Australia receive timely Commonwealth approval?
- How will Civmec convert its $13.2 billion tender pipeline into secured contracts, especially in naval shipbuilding?
- What impact will government infrastructure investments have on Civmec’s regional facilities and operational capacity?