Big River Industries Reports 2.3% Revenue Dip but Boosts Second-Half EBITDA by 10.6%

A Century-Old Legacy Meets Modern Challenges

Big River Industries, a vertically integrated timber and building materials manufacturer with roots stretching back over 100 years, has released its FY25 results revealing a business navigating a challenging construction market while laying groundwork for future growth. Despite a 2.3% decline in revenue to $405.1 million, the company’s diversified footprint across Australia and New Zealand and broad product range have helped it weather ongoing headwinds.

Operational Discipline Drives Second-Half Recovery

Underlying EBITDA declined 11.9% year-on-year to $28.7 million, reflecting softer volumes and cost pressures. However, the second half of FY25 showed a clear turnaround with EBITDA growing 10.6%, supported by targeted cost controls and efficiency initiatives that reduced operating expenses by 2.7%. The construction division, which accounts for the majority of revenue, saw a modest 5.4% revenue decline but improved margins through pricing discipline and supply chain consolidation.

Panels Division Expands Amid Market Shifts

The panels segment, including the recently acquired Specialised Laminators Queensland (SLQ) business, grew revenue by 5% to $129.7 million, though EBITDA contracted by nearly 13% due to integration costs and competitive pressures. Big River continues to invest in bespoke manufacturing capabilities and high-end decorative and technical panel products, positioning itself to capture growth in expanding market niches.

Financial Strength and Shareholder Returns

Big River maintained a strong financial profile with cash conversion exceeding 100% and gearing stable at 20.1%, preserving investment flexibility. The company declared a final dividend of 2.0 cents per share, consistent with the prior year, resulting in a full-year payout ratio of 80%. Gross profit margins improved slightly to 26.2%, reflecting disciplined pricing and supplier alignment despite volume softness.

Looking Ahead – FY26 and Beyond

Management’s outlook for FY26 is cautiously optimistic. Early signs point to a modest recovery in the residential market, supported by expectations of lower interest rates and ongoing stimulus measures. The commercial segment remains stable with solid project pipelines. Queensland, Big River’s largest market, is expected to be a key growth driver, buoyed by infrastructure investment linked to the Brisbane 2032 Olympics. Strategic priorities include growing market share in differentiated segments, improving margins, continuing operational improvements, and integrating ERP systems to enhance scale and efficiency.

Big River also signals ongoing interest in selective acquisitions to complement organic growth. While challenges remain, the company’s leaner cost base and diversified product mix provide a solid platform to capitalize on improving market conditions.