Bhagwan Marine Ltd reported a 16.6% decline in revenue to AUD 235.9 million for the 2026 financial year, while underlying profit metrics held firm amid operational restructuring and market volatility. Pro forma EBITDA totaled AUD 46.1 million, down 9% year-over-year, with the EBITDA margin improving to 20% from 18% in FY25.
Operational cash flow rose 9.6% to AUD 40 million, yielding a 90% cash conversion rate, while pro forma free cash flow reached AUD 8.3 million. Net debt excluding leases increased to AUD 74.5 million from AUD 5.3 million in FY25, with a net debt-to-EBITDA ratio of 1.2 times. Management indicated a target leverage ratio of around 1.0 times over time, alongside a gearing level of 34% and a debt-to-equity ratio of 0.42.
The company declared fully franked dividends for FY26 amounting to AUD 0.8 cents per share, while total capital expenditure for the year reached AUD 27.2 million, split between AUD 9.1 million in growth investments and AUD 18.1 million in sustaining outlays. Lease repayments accounted for an additional AUD 13.6 million.
Revenue pressures reflected deferred short-term projects in the latter half of FY26, driven by Middle East uncertainty and energy sector restructuring, compounded by the absence of a AUD 26.4 million one-off revenue stream from the Thevenard Island decommissioning project in FY25. Recurring revenue rose to 56% of group revenue, with a pro forma annualized contribution of 62% including Riverside Marine, which was acquired in March 2026.
Riverside Marine contributed AUD 60 million in standalone revenue and AUD 24.5 million in pro forma EBITDA for FY26, with fourth-quarter performance up 17% in revenue and 30% in EBITDA year-over-year. The acquisition expanded Bhagwan Marine’s fleet valuation to approximately AUD 199 million, including AUD 40 million from Riverside Marine, up from AUD 117 million in 2024.
Management highlighted tightening global offshore vessel utilization, with anchor handler and platform supply vessel day rates retreating to mid-2000s levels despite long-term supply constraints. New build prices have surged by roughly 90-100% since 2014 due to elevated construction costs and financing constraints, while contract pricing includes inflation pass-through mechanisms.
