Rising Debt Raises Questions Despite Boom Logistics’ Profit Jump
Boom Logistics reported solid FY25 results with a 41% jump in operating profit, driven by strong contract wins in resources and renewables and a strategic asset regeneration program.
- FY25 revenue of $265 million, up 2% on prior year
- Operating NPAT surged 41% to $9.3 million
- Over $65 million in new and renewed contracts secured
- Net debt increased to $97.8 million due to $35.2 million capex
- No lost time injuries and improved labour efficiency at 86%
Strong Financial Performance Amid Strategic Growth
Boom Logistics, a leading Australian provider of complex lifting and project logistics solutions, has delivered a robust FY25 financial performance. The company reported revenue of $265 million, a modest 2% increase over FY24, but more notably, operating net profit after tax (NPAT) soared by 41% to $9.3 million. Earnings per share rose 38% to 22 cents, reflecting improved operational efficiencies and disciplined capital management.
Underlying this growth is Boom’s strategic focus on sectors with strong long-term demand, including resources, renewables, and critical infrastructure. The company secured over $65 million in new and renewed contracts during the year, primarily in resources and renewable energy projects such as the Murra Warra Wind Farm in Victoria and transmission infrastructure across Queensland and New South Wales.
Asset Regeneration and Operational Efficiency Drive Margins
Boom’s asset regeneration program was a key driver behind the improved profitability, with $35.2 million invested in new fleet and equipment designed to enhance reliability, safety, and efficiency. This investment led to a fleet utilisation rate of 86%, consistent with prior periods, and labour efficiency also improved to 86%. The company disposed of obsolete assets worth $9.9 million, helping to streamline operations and reduce downtime.
Despite the capital expenditure, net tangible assets per share increased 8% to $2.87, underscoring the company’s commitment to balancing growth with shareholder value. However, net debt rose to $97.8 million, reflecting the capex outlay and operating leases, with a gearing ratio of 42.5%. Management indicated that asset regeneration would scale back in FY26 to improve cash flow and reduce debt levels.
Safety and Sustainability Remain Core Priorities
Safety performance remained exemplary, with no lost time injuries recorded in FY25 and a total recordable injury frequency rate (TRIFR) of 5.7 per million hours worked. Boom continues to embed its Life-Saving Rules and ISO 45001 certification across operations. Environmental, social, and governance (ESG) initiatives progressed with structured waste tracking and annual greenhouse gas emissions assessments, aligning with the company’s sustainability roadmap.
Looking Ahead – FY26 Strategic Priorities
For FY26, Boom Logistics plans to build on its momentum by focusing on margin growth, converting strong tender pipelines into contracts, and continuing capital management programs including share buybacks and dividends. The company aims to deepen its presence in renewable energy and transmission sectors while maintaining high labour efficiency and fleet utilisation targets above 85%. With a strong balance sheet and strategic positioning, Boom is poised to capitalise on Australia’s accelerating infrastructure and energy transition projects.
Bottom Line?
Boom Logistics’ FY25 results underscore its rising role in Australia’s infrastructure and renewables sectors, but managing debt and contract conversion will be critical next steps.
Questions in the middle?
- How will Boom balance asset regeneration with debt reduction in FY26?
- What is the outlook for contract wins in emerging renewable energy projects?
- Can Boom sustain labour efficiency and safety standards amid growth?
