Civmec Limited reports a 24.3% drop in revenue and a 19% fall in net profit for the half year ended December 2025, while advancing its naval shipbuilding footprint through the acquisition of Luerssen Australia.
- Revenue declines 24.3% to A$380.4 million in H1 FY2026
- Net profit after tax falls 19% to A$21.4 million
- Interim dividend declared at 3.5 cents per share
- Acquisition of Luerssen Australia strengthens naval shipbuilding role
- Net tangible assets per share rise to 121.89 cents
Financial Performance Overview
Civmec Limited has released its half-year results for the period ending 31 December 2025, revealing a notable contraction in both revenue and profitability. The company’s revenue fell by 24.3% to A$380.4 million compared to the same period last year, while net profit after tax declined by 19% to A$21.4 million. Basic earnings per share dropped from 5.21 cents to 4.21 cents, reflecting the tighter margin environment and possibly project timing impacts.
Dividend and Shareholder Returns
Despite the softer earnings, Civmec declared an interim dividend of 3.5 cents per share, consistent with the prior year’s interim payout. This dividend is fully franked and payable on 10 April 2026, signalling management’s confidence in the company’s cash flow and ongoing operations. Total dividends paid for the half year amounted to approximately A$17.8 million, maintaining a steady return to shareholders amid a challenging market backdrop.
Strategic Acquisition Enhances Naval Shipbuilding
A key highlight of the period was Civmec’s acquisition of Luerssen Australia Pty Ltd on 1 July 2025. This move significantly bolsters Civmec’s presence in the Australian naval shipbuilding sector, particularly supporting the SEA1180 Offshore Patrol Vessel program. Luerssen’s expertise and capabilities are expected to strengthen Civmec’s role in delivering next-generation patrol vessels, replacing the ageing Armidale-class fleet. The acquisition aligns with the company’s strategic focus on defence infrastructure and long-term government contracts.
Joint Ventures and Infrastructure Projects
Beyond naval shipbuilding, Civmec continues to participate in major infrastructure projects through joint ventures. These include a wastewater treatment plant upgrade with Black & Veatch Civmec JV and the Causeway Pedestrian and Cyclist Bridge in Perth, where Civmec holds majority interests alongside partners. The company also maintains a stake in the Perth Sporting and Entertainment Precinct Project, underscoring its diversified footprint across construction and engineering sectors.
Balance Sheet and Outlook
Net tangible assets per share improved to 121.89 cents from 111.43 cents a year earlier, reflecting asset growth and the integration of Luerssen. While the half-year results show pressure on top-line and profitability, Civmec’s strategic investments and steady dividend policy suggest a focus on sustainable growth and shareholder value. Investors will be watching closely how the company manages project execution and capitalises on its enhanced naval capabilities in the coming months.
Bottom Line?
Civmec’s H1 results highlight short-term challenges but underscore a strategic pivot into naval shipbuilding that could reshape its growth trajectory.
Questions in the middle?
- How will the Luerssen acquisition impact Civmec’s margins and cash flow in FY2026?
- What are the key drivers behind the revenue and profit declines this half?
- How sustainable is the current dividend policy amid earnings pressure?