Bhagwan Marine flags strong FY27 start

BHAGWAN Marine has reported a solid finish to the 2026 financial year and a strong start to FY27, with the company telling shareholders at its annual meeting that recurring revenue was rising, margins remained firm and major opportunities were emerging across decommissioning, defence and offshore energy.

Chairman Anthony Wooles said FY26 had been “an important step in strengthening Bhagwan’s foundations”, despite project deferrals linked to Middle East conflict and restructuring within the energy sector.

Revenue for the year came in at $236.3 million, with an EBITDA margin of 20% and operating cash flow of $40 million. The board declared fully franked dividends totalling 0.8 cents per share, up on the prior year.

Safety performance remained a highlight, with lost time injury frequency rate at zero throughout the year.

Mr Wooles pointed to several operational milestones, including the five‑year Coral Knight contract with Jadestone Energy, the acquisition of the Bhagwan Ocean to pursue higher‑value marine construction and logistics work, and additional wins in decommissioning.

The company also completed its transformational acquisition of Riverside Marine, with integration progressing and the enlarged fleet generating new opportunities across ports, dredging, industrial sands and inshore operations.

Bhagwan has embedded a COO function, strengthened business development capability and upgraded governance, HR and reporting systems, investments Mr Wooles said were essential to ensuring the business was “match‑fit for the opportunities ahead”.

Managing director Loui Kannikoski told shareholders the group’s revenue profile was shifting toward longer‑term and recurring work. Riverside Marine contributed $15.1 million post‑acquisition in FY26, lifting recurring revenue to 56% of total revenue, or 62% on an annualised basis.

Riverside’s dredging and industrial sands business, the largest supplier of construction sand in Brisbane, delivered record 1Q27 volumes, supported by strong demand from infrastructure and housing activity.

Mr Kannikoski said the company is seeing “strong contributions from high‑margin Offshore Energy & Resources (subsea)” and continued momentum from late FY26 into the first quarter of FY27.

The AGM presentation included a trading update showing 1Q27 group revenue of $81.3 million, up 32% on the prior corresponding period and 14% on 4Q26. Recurring revenue has increased again to 64%.

Two subsea inspection contracts worth a combined $9.5 million were secured during the quarter, utilising the Bhagwan Dryden dive support vessel. The company also announced a multi‑year deployment for the Riverside Guardian, with a minimum committed value of $5.8 million and potential to reach $11.6 million.

Bhagwan said several major decommissioning opportunities in Western Australia, including Northern Endeavour and Barrow Island, are maturing, while the AUKUS‑linked Henderson precinct development is generating positive signals for future defence work.

Mr Kannikoski said the company’s incumbency at key marine hubs, combined with enhanced business development capability, is supporting organic growth across its client base.

Shareholders passed all resolutions, including the adoption of the remuneration report, re‑election of director Andrew Wackett, and approval of performance rights for senior executives under the Employee Incentive Awards Plan.