Civmec’s H2 net profit sinks 50.7% as activity eases after delivering major contracts
A final dividend of A$0.035 per share was declared for the period, unchanged from the year before
[SINGAPORE] Integrated heavy engineering, construction and maintenance service provider Civmec posted a 50.7 per cent drop in net profit to A$16 million (S$13.4 million) for its six months ended Jun 30, from A$32.5 million in the previous corresponding period.
This came alongside a 43.1 per cent fall in revenue to A$307.7 million for the second half of its financial year, from A$541.1 million in H2 FY2024.
In a bourse filing on Thursday (Aug 28), the mainboard-listed company attributed its performance to reduced activity levels following the completion of several major contracts.
Basic earnings per share for the six-month period fell to A$0.0316 from A$0.0641 in the previous year.
A final dividend of A$0.035 per share was declared for the period, unchanged from the year before. The dividend will be paid on Oct 24, after books closure on Oct 15.
Full-year performance
For the full year, net profit fell 34 per cent to A$42.5 million from A$64.4 million in FY2024, following a 21.6 per cent drop in revenue to A$810.6 million from A$1.03 billion in the previous year.
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Civmec notched an increase in revenue from its energy segment, but recorded a decrease from its resources as well as infrastructure, marine and defence segments.
Higher activity levels undertaken in the energy sector drove its revenue up by 110 per cent to A$65.2 million from A$31 million in FY2024.
Meanwhile, lower activity levels meant that its revenue for its resources sector fell 26.8 per cent to A$641.2 million, and that for its infrastructure, marine and defence segment declined 17.3 per cent to A$104.2 million.
However, gross profit for the latter increased by 100.4 per cent due to the timing of profit recognition from the completed Boorloo Bridge project, noted the group.
Civmec said: “Whilst the group continues to maintain its strong relationship with long-term customers, the previously observed shift in market conditions has eventuated, resulting in delays to key project awards and rescheduling of project timelines impacting activity levels in H2 FY25 and H1 FY26.
“Despite this, tendering activity remains strong, and market outlook is improving, with indications that activity levels will increase in H2 FY26.”
Earlier in June, Civmec announced its purchase of Luerssen Australia from Naval Vessels Luerssen Australia for A$20 million in cash, funded by the group’s existing cash reserves.
As at Jul 1, 2025, it had successfully completed the acquisition, which is expected to boost activity within its infrastructure and defence segments, it noted.
Within its balance-machine business unit, the group also observed positive market conditions with an increase in interest and client engagement, said the financial statement.
The company continues to focus on maintaining a strong pipeline of tendering activities and exploring new revenue streams to ensure sustained growth and profitability, it added.
Shares of Civmec closed Thursday at S$0.945, up S$0.005 or 0.5 per cent, before the announcement.
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