Key Highlights

  • Net Revenue declined 16.6% to $235.9 million in FY26, down from $283.0 million, reflecting project deferrals linked to Middle East uncertainty.
  • The Group recorded a statutory net loss after tax of $0.2 million, compared with a $12.5 million profit in FY25.
  • Pro forma EBITDA Margin improved to 20% from 18%, even as pro forma EBITDA declined to $46.1 million from $50.9 million.
  • Fully franked dividends for FY26 totalled 0.8 cents per share, up from 0.5 cents per share in FY25.

Bhagwan Marine Limited (ASX:BWN) reported its full-year results for FY26, with net revenue of $235.9 million, down 16.6% from $283.0 million in FY25. The company attributed the decline to the deferral of short-term projects in the second half of the year due to uncertainty in the Middle East and organisational restructuring within the energy sector, though it noted that activity recovered in May and June, with Demand across its core markets remaining in place.

The Group recorded statutory EBITDA of $42.5 million, down from $50.2 million in FY25, and a statutory net loss after tax of $0.2 million, compared with a $12.5 million profit in the prior year. Statutory results included acquisition-related transaction and integration costs of $3.6 million associated with the Riverside Marine acquisition, which was completed on 31 March 2026 and contributed revenue for the fourth quarter of FY26 only.

Pro Forma Margins Improve Despite Lower Earnings

On a pro forma basis, EBITDA was $46.1 million, down from $50.9 million in FY25, though the pro forma EBITDA margin improved to 20% from 18%, which the company said was supported by gross margin improvement, effective project execution and disciplined cost management. Pro forma NPATA was $3.2 million, down from $13.0 million in FY25. Pro forma net cash from operations increased 9.6% to $40.0 million from $36.5 million, with pro forma free Cash Flow of $8.3 million and cash conversion of 90%.

Core revenue, excluding the Riverside Marine contribution and prior-year TVI project revenue, was $220.8 million, down from $256.6 million in FY25. Riverside Marine contributed $15.1 million in revenue for its partial-year inclusion. Net tangible Assets per share, excluding leased assets, declined slightly to 0.42 cents from 0.47 cents in FY25.

Riverside Marine Acquisition and Fleet Expansion

A central feature of FY26 was the completed acquisition of Riverside Marine, which the company described as transformational, expanding recurring revenue, fleet scale and capability. Integration of the acquisition was reported to be progressing, with the Group also embedding a Chief Operating Officer function, strengthening Business development capability, and enhancing financial governance and operational processes during the year.

Other operational highlights included securing a five-year contract with Jadestone Energy for the Coral Knight vessel, which the company said increased long-term Recurring Revenue and validated its Investment in larger-vessel capability. Bhagwan also acquired the Bhagwan Ocean vessel, expanding its capability to pursue marine construction and logistics projects, and delivered additional decommissioning projects that the company said strengthened its position in an emerging market.

Dividends and FY27 Outlook

The Board declared a fully franked final dividend of 0.3 cents per share, bringing total fully franked dividends for FY26 to 0.8 cents per share, up from 0.5 cents per share in FY25. The final dividend record and payment dates are 10 September 2026 and 6 October 2026 respectively. Management said the dividend reflects the cash-generative nature of the company's core business, while remaining focused on balancing Shareholder returns with Debt reduction and continued investment.

Founder and Managing Director Loui Kannikoski said FY26 demonstrated the strength of Bhagwan's core business, noting that while short-term project deferrals impacted second-half revenue, activity strengthened in May and June alongside continued margin and cash generation. Chairman Anthony Wooles said FY26 was an important year in the company's progression as a listed entity, having strengthened systems, governance and commercial capability while completing the Riverside Marine acquisition. The company said it enters FY27 focused on execution, integration of Riverside Marine, and pursuing organic growth opportunities in decommissioning, offshore wind and defence markets.

Conclusion

Bhagwan Marine's FY26 results reflect a year shaped by short-term revenue deferrals linked to external market uncertainty, offset in part by the transformational acquisition of Riverside Marine and an improvement in pro forma margins. While statutory Earnings moved into a small loss, the increase in pro forma net cash from operations and disciplined cost management suggest the core business retained its cash-generative characteristics. The company's FY27 outlook centres on integrating Riverside Marine and capturing opportunities across decommissioning, offshore wind and defence as it seeks to rebuild earnings momentum.