James Fisher and Sons plc reported first-half 2026 results on September 8, 2026 for the six months ended June 30, 2026. Underlying operating profit rose 27.9% to £14.2 million, while revenue increased 2.1% to £195.9 million. The operating margin expanded 140 basis points to 7.2%, moving toward the company's medium-term target of 10%. The margin had improved 220 basis points from 5.0% in the first half of 2024 to 7.2% in the current period. Return on capital employed rose 210 basis points to 8.2%.
Net debt increased to £65.7 million from £54.4 million at the end of 2025, which the company attributed to fleet renewal and technology investments. Net debt to EBITDA was 1.5 times, within the target range of 1.0 to 1.5 times. Shares fell 2.64% in pre-market trading to $443, within a 52-week range of $325 to $554.
Defence was the main growth driver. Revenue rose 43.1% to £53.8 million, and operating profit increased 657% to £5.3 million. The division's operating margin expanded from 1.9% to 9.9%. The order book stood at £295 million at June 30, with an additional £95 million in framework awards and £15 million in annual run-rate revenue from new contracts. About 60% of the combined £390 million in orders and framework awards is expected to be realized over the next three years. The slides referenced the Polish Navy's Ratownik Submarine Escape programme and the Stealth Multi-Role rebreather.
Energy results declined. Revenue fell 20.6% to £68.1 million, or 11.7% on a like-for-like basis after excluding an £8.7 million impact from the closure of IRM Middle East and Africa. Energy Services revenue dropped by about £15 million. Operating profit fell 45.4% to £5.3 million, and the operating margin contracted 350 basis points to 7.8%.
Maritime transport provided the strongest margin. Revenue increased 8.0% to £74.0 million, and operating profit rose 47.8% to £10.2 million. The operating margin expanded 370 basis points to 13.8%, the highest of the three divisions. Three of four newbuild dual-fuel LNG tankers have been delivered, with two delivered in the first half and one in July; the final vessel is scheduled for the second half of 2026.
Capital and development expenditure totaled £14.5 million in the first half. The company expects full-year investment of about £35 million. Defence spending of about £3 million was directed to finalizing the Stealth Multi-Role rebreather and submarine rescue opportunities. Energy spending of about £6 million supported electric and oil-free compressors, autonomous blade inspection, subsea cutting tools and digital controls. Maritime transport spending of about £6 million was used for fleet renewal, maintenance and new dual-fuel LNG vessels.
The company generated £36.6 million of EBITDA in the period and used £15.5 million for lease payments and £5.0 million for financing of Sarnia vessels. It added £25 million of liquidity in March 2026 through an increased committed revolving credit facility. Interest coverage improved to 7.4 times, above the 4.5 times covenant requirement.
Full-year 2026 technical guidance includes capital and development investment of around £35 million, an interest rate on bank borrowings of approximately 8.0%, and an underlying effective cash tax rate of about 35%, trending toward 30% over the medium term. The chief executive said the company had reshaped James Fisher into a stronger, more resilient business, strengthened the balance sheet, simplified the portfolio and built a leadership team focused on accountability and disciplined execution. The company also said it avoided certain ship-to-ship transfer business in the Middle East because of safety and compliance concerns.
