Boom Logistics Drives 38% EPS Surge Amid Renewables Growth
Boom Logistics has reported a robust FY25 performance, with a 38% increase in operating earnings per share, underpinned by strong renewables and transmission projects despite challenges in resources and infrastructure.
- Revenue reaches $265 million, up 2% from FY24
- Operating NPAT grows 41% to $9.3 million
- Operating EPS jumps 38% to 22 cents
- Declared 2 cent unfranked dividend and $2 million share buybacks
- Fleet renewal reduces average age to 6 years, net gearing stable at 42.5%
Strong Financial Performance Amid Sector Shifts
Boom Logistics Limited (ASX – BOL) has delivered a compelling FY25 result, showcasing resilience and strategic execution in a complex market environment. The company posted revenue of $265 million, a modest 2% increase over the previous year, driven primarily by heightened activity in wind farm and transmission line projects. This growth offset softer demand in the resources and infrastructure sectors, which faced headwinds from commodity price fluctuations and project timing delays.
EBITDA rose 9% to $50 million, reflecting improved margins, disciplined cost controls, and operational optimisation. Notably, operating net profit after tax (NPAT) surged 41% to $9.3 million, translating into a 38% uplift in operating earnings per share (EPS) to 22 cents. These gains underscore the effectiveness of Boom’s strategic focus on pricing, asset utilisation, and fleet rejuvenation.
Capital Management and Shareholder Returns
Capital management remains a cornerstone of Boom’s approach, with the company declaring a 2 cent unfranked dividend and executing $2 million in share buybacks during FY25, a 50% increase from the prior year. Looking ahead, the board has signalled intent to expand the buyback program to up to $4 million in FY26, subject to market conditions and financial position. Net tangible assets per share rose 8% to $2.87, reflecting solid balance sheet management amid ongoing fleet investments.
Net capital expenditure was $25.2 million, down 24% from FY24, supported by $9.9 million in proceeds from asset disposals as part of a disciplined fleet renewal program. This effort reduced the value-weighted average fleet age to 6.0 years, enhancing operational reliability and efficiency.
Operational Highlights and Safety Focus
Operationally, Boom maintained a steady asset utilisation rate of 86% and improved labour efficiency to 86%. The company secured over $65 million in new and re-signed contracts, reinforcing its strong market position. However, safety remains a critical focus following a tragic fatality at Clarke Creek in early FY26, prompting ongoing investigations and renewed safety commitments.
Strategic Outlook and Growth Prospects
CEO Ben Pieyre emphasised Boom’s strategic alignment with Australia’s energy transition, highlighting the company’s integral role in renewable energy infrastructure. Despite recent regulatory uncertainties around wind farm approvals, government support for green energy projects is expected to accelerate, providing a robust pipeline for Boom’s services. The company anticipates continued EPS growth in FY26, driven by diversified revenue streams and sustained demand across renewables, transmission, and infrastructure sectors.
With a strong balance sheet, scalable fleet, and focused capital allocation, Boom Logistics appears well-positioned to capitalise on emerging opportunities while managing operational risks and maintaining shareholder value.
Bottom Line?
Boom Logistics’ FY25 momentum sets the stage for further EPS growth, but safety and market uncertainties warrant close watch.
Questions in the middle?
- How will the fatality incident impact Boom’s operational risk profile and safety protocols?
- Can Boom sustain its EPS growth amid potential delays in renewable energy project approvals?
- What are the implications of increased share buybacks on Boom’s capital flexibility?
