Bhagwan Marine’s Profit Boom Raises Questions on Future Sustainability
Bhagwan Marine Limited reported a robust 5.3% revenue increase and a striking 125% surge in net profit for FY25, announcing its inaugural fully franked dividend.
- Revenue rises 5.3% to $283 million
- Net profit after tax more than doubles to $12.5 million
- EBITDA grows 26.5% to $50.2 million
- First-ever fully franked dividend declared at 0.5 cents per share
- Pro forma EBITDA adjustments highlight underlying earnings strength
Strong Financial Performance
Bhagwan Marine Limited, a leading Australian marine solutions provider, has delivered a solid financial performance for the fiscal year ending June 30, 2025. The company reported a 5.3% increase in revenue, reaching $283 million, supported by its extensive fleet and diversified service offerings across offshore energy, subsea, ports, and defence sectors.
More impressively, the company’s net profit after tax (NPAT) surged by 125.1% to $12.5 million, reflecting improved operational efficiencies and a favourable market environment. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also climbed 26.5% to $50.2 million, underscoring the company’s growing profitability.
Operational Highlights and Cost Management
Bhagwan Marine’s earnings before interest and tax (EBIT) rose 34.5% to $23 million, signaling strong core business momentum. The company’s pro forma EBITDA, which adjusts for IPO-related transaction costs and additional administration expenses, increased 23.2% to $50.9 million, offering a clearer picture of underlying earnings power.
Notably, the company’s IPO transaction costs fell significantly from $2.7 million in FY24 to $0.7 million in FY25, reflecting the completion of its listing process. Meanwhile, ongoing listed company administration expenses remained stable, indicating disciplined cost control as Bhagwan scales its operations.
Dividend Initiation and Shareholder Returns
In a milestone for shareholders, Bhagwan Marine declared its inaugural fully franked dividend of 0.5 cents per share, payable on October 7, 2025. This move signals confidence in the company’s cash flow generation and commitment to returning value to investors following its successful IPO.
The net tangible asset backing per share improved to $0.48 from $0.42 the previous year, reflecting strengthened balance sheet fundamentals. The company’s large, skilled workforce and national presence continue to underpin its ability to deliver customised marine solutions efficiently and safely.
Looking Ahead
While Bhagwan Marine’s FY25 results demonstrate robust growth and profitability, the company has not provided explicit forward guidance or updates on major contracts. Investors will be watching closely for how the company leverages its scale and expertise to sustain momentum amid evolving market conditions.
Bottom Line?
Bhagwan Marine’s strong FY25 results and inaugural dividend set the stage for investor confidence, but future contract wins and cost management will be key to sustaining growth.
Questions in the middle?
- How will Bhagwan Marine sustain profit growth amid competitive pressures?
- What impact will evolving offshore energy trends have on future contracts?
- Will the company increase dividend payouts as cash flow strengthens?
