Big River Industries Eyes Double-Digit Growth in FY27 Amid Strategic Review

Resilient Earnings Despite Weather-Driven Revenue Dip

Big River Industries (ASX:BRI) is poised to deliver an 8% rise in EBITDA for FY26, marking a return to full-year earnings growth despite a challenging final quarter. The company attributed softer revenue in Q4 largely to significant wet weather events across eastern Australia in May, which disrupted construction activity. However, a solid April performance and expectations for June to finish close to plan helped balance the impact.

Gross margin discipline remains a bright spot, with margins forecasted to be 10 to 20 basis points higher than the prior corresponding period. Operating costs have been tightly managed despite inflationary pressures on labour, freight, and other expenses, underpinning the group's resilient trading performance.

Johns Building Supplies Acquisition Gains Traction

The integration of Johns Building Supplies (JBS), acquired in Western Australia, is progressing well, with first-half trading in line with expectations. Big River now anticipates JBS's full-year contribution in FY27 to exceed earlier forecasts, driven by integration efficiencies and favourable market conditions in WA. This follows the company’s earlier strategic move to expand its footprint in the region through the acquisition, which was funded partly by a $10 million entitlement offer in late 2025.

Strategic Growth Initiatives to Support FY27 Momentum

Looking ahead, Big River expects double-digit EBITDA growth in FY27, contingent on market conditions. The company is investing in targeted growth areas, including cladding, decorative panels, and specialised plywood solutions, where it sees clear competitive advantages. These initiatives are designed to drive market share expansion and margin improvement, positioning the group for sustained growth.

Board Launches Strategic Options Review

In a notable development, Big River’s board has engaged Greenstone Partners to explore strategic options aimed at enhancing shareholder value. While no decisions have been made and outcomes remain uncertain, the move signals a proactive approach to unlocking the company’s long-term potential amid a market that the board views as undervaluing the business.

CEO John Lorente highlighted the company’s strengthened position after two years of deliberate efforts to build resilience across varying market conditions. With Western Australia showing the strongest regional performance and other markets like Victoria and New Zealand remaining soft, the group’s ability to manage supply chain dynamics and cash flow remains critical.