Why Bhagwan Marine (ASX:BWN) Is Reporting Higher Quarterly Revenue After the Riverside Marine Acquisition

Sonal Goyal

23 October 2026 05:42 PM AEDT

Why Bhagwan Marine (ASX:BWN) Is Reporting Higher Quarterly Revenue After the Riverside Marine Acquisition

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Bhagwan Marine reported Q1 FY27 group Revenue of A$81.3 million, with A$63.7 million from Bhagwan and A$17.6 million from Riverside Marine.
FY26 net revenue was A$235.9 million, down 16.6 per cent from A$283.0 million in FY25, with a fully Franked Dividend of 0.8 cents a share.
Proxy votes showed support of at least 99.2 per cent on all seven Annual General Meeting resolutions.

Bhagwan Marine Limited (ASX:BWN) used its annual general meeting materials to report group revenue of A$81.3 million for the first quarter of FY27. That is 14 per cent above the fourth quarter of FY26 (A$71.3 million) and 32 per cent above the prior corresponding period. Bhagwan itself contributed A$63.7 million and Riverside Marine A$17.6 million. The 32 per cent figure compares the combined group with a prior-year base that contained only Bhagwan. On the company's own segment figures, Bhagwan was up 3 per cent on the first quarter of FY26 and Riverside up 6 per cent.

Management said high-margin subsea work and Riverside Industrial Sands contributed to the quarter, that EBITDA margins were maintained, and that it sees room for expansion. Group Recurring Revenue reached 64 per cent in the quarter. The company gave no numerical FY27 guidance.

FY26 results

For FY26, net revenue was A$235.9 million, down 16.6 per cent from A$283.0 million in FY25, which included Bhagwan only. The Chairman's address cited A$236.3 million. Bhagwan contributed A$220.8 million and Riverside A$15.1 million for the fourth quarter after acquisition. The pro forma EBITDA Margin was 20 per cent, up from 18 per cent, with EBITDA of A$40.0 million at Bhagwan and A$6.1 million at Riverside. Net cash from operations was A$40.0 million, and pro forma free Cash Flow rose to A$8.3 million from A$2.9 million. The dividend is 0.8 cents a share, fully franked, up from 0.5 cents. Pro forma and EBITDA measures are unaudited.

The company said some short-term projects were deferred in the second half because of the Middle East conflict and energy sector restructuring, and described these as timing matters. Activity improved in May and June.

Riverside and new contracts

Riverside Marine, acquired on 31 March 2026, reported FY26 revenue of A$60.0 million and pro forma EBITDA of A$24.5 million, with 94 per cent of revenue long-term recurring. Fourth-quarter revenue rose 17 per cent and EBITDA 30 per cent on the prior period.

Two contract wins were announced. The Riverside Guardian agreement with a Tier 1 energy company runs for two years with a two-year extension, has a minimum committed value of about A$5.8 million and could reach A$11.6 million, with mobilisation in late 2026. Subsea service contracts worth about A$9.5 million in combination, using the Bhagwan Dryden, are mobilising between August and November 2026. Earlier, a five-year Coral Knight contract with Jadestone Energy was announced in December 2025.

Strategy and outlook

Management's growth framework rests on its core business, organic growth, further acquisitions and what it calls blue-sky opportunities in decommissioning, defence and offshore power. It said established hubs generate about A$50 million of revenue a year and long-term contracts about A$70 million a year. Management pointed to maturing Western Australian decommissioning opportunities, including Northern Endeavour and Barrow Island, momentum in the AUKUS Henderson development, and Brisbane construction sand demand, with double-digit Volume growth at Riverside Industrial Sands. It added that Riverside is outperforming internal expectations and that integration is on track.

Risks and meeting items

Bhagwan Marine (ASX:BWN) said that project timing can move, that revenue from large projects such as decommissioning work can be lumpy, and that the pace of blue-sky markets depends on regulation and client decisions outside its control. Integration and synergy delivery at Riverside also carry execution risk.

Proxy votes received before the meeting showed support of at least 99.2 per cent on all seven resolutions, which covered the remuneration report, the re-election of Andrew Wackett, an employee incentive awards plan and performance rights for four named individuals. Final results are due to be released after the meeting.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.