Boom Logistics Posts $264.6M Revenue and $23.3M Net Profit in FY2025
Boom Logistics has reported a significant jump in net profit for FY2025, driven by strategic asset renewal and operational efficiency, while declaring a 2 cent dividend and continuing its share buy-back program.
- Statutory net profit after tax rises to $23.3 million, up from $6.6 million
- Revenue grows to $264.6 million despite sector headwinds
- Capital expenditure focused on fleet renewal totals $35.2 million
- Gearing ratio increases slightly to 42.5% with $97.8 million net debt
- Final unfranked dividend of 2 cents per share declared, payable September 30
Robust Profit Growth Amid Challenging Markets
Boom Logistics Limited has delivered a standout financial performance for the year ended 30 June 2025, reporting a statutory net profit after tax of $23.3 million, a substantial increase from $6.6 million in the previous year. This surge reflects both operational improvements and a significant deferred tax benefit recognised earlier in the year.
Revenue climbed modestly to $264.6 million, supported by new project commencements and growth in the renewables sector, despite mixed headwinds across resources, infrastructure, and industrial markets. The company’s strategic focus on asset regeneration and fleet optimisation has been pivotal in sustaining service excellence and positioning Boom for future opportunities.
Capital Investment and Fleet Modernisation
Capital expenditure reached $35.2 million in FY2025, primarily directed towards renewing and expanding Boom’s fleet. This investment aligns with the company’s strategy to maintain a modern, scalable fleet with enhanced technology and safety features, improving fuel efficiency and utilisation. Net capital expenditure stood at $25.2 million after disposals, funded largely through new finance leases and borrowings.
The average fleet age has been reduced slightly to six years, reflecting ongoing asset renewal efforts. This approach aims to ensure Boom remains agile and responsive to evolving customer demands across its core segments.
Balance Sheet and Capital Management
Boom’s balance sheet remains solid, with net assets increasing to $132.4 million and a gearing ratio of 42.5%, marginally higher than the prior year but within the company’s target range of 35% to 45%. Net debt rose to $97.8 million, reflecting the recent capital investments. The company maintains $150 million in committed debt facilities, with 65% drawn, providing ample headroom for future growth.
In line with its capital management strategy, Boom returned value to shareholders through a $2 million on-market share buy-back and declared a final unfranked dividend of 2 cents per share, payable on 30 September 2025. Operating earnings per share rose 38% to 22 cents, underscoring improved profitability and capital efficiency.
Outlook and Strategic Positioning
Despite ongoing sector challenges, Boom Logistics’ disciplined focus on operational performance, asset renewal, and capital management positions it well to capitalise on emerging market opportunities. The company’s investment in fleet modernisation and strategic alignment with key sectors such as renewables and infrastructure underpin its growth prospects.
Management’s confidence is further reflected in the recognition of deferred tax benefits and the maintenance of strong tax credits, which are expected to minimise tax liabilities in the near term.
Bottom Line?
Boom Logistics’ strong profit turnaround and disciplined capital strategy set the stage for sustained growth amid evolving market conditions.
Questions in the middle?
- How will Boom balance further fleet investment with managing its gearing ratio?
- What impact will the unfranked dividend have on investor appetite?
- Can Boom sustain profit growth amid ongoing sector headwinds and economic uncertainty?