Civmec Delivers Robust Q1 FY26 Results, Expands Naval Shipbuilding and OEM Materials Handling Capabilities

Key Points:

• Q1 FY26 revenue of A\$190.4 million, EBITDA of A\$23.1 million, NPAT of A\$21.3 million
• Order book stands at A\$1.15 billion as of September 2025
• Strategic acquisition and rebranding of Luerssen Australia to Civmec Defence Industries (CDI) completed
• Four Offshore Patrol Vessels (OPVs) under construction, with significant milestones and future opportunities up to A\$25 billion
• OEM materials handling division delivers full in-house solutions, with >A\$3 billion opportunity pipeline
• Maintenance operations expanding recurring revenue and regional footprint, with new long-term service agreements
• Attractive dividend yield; A\$123.3 million in dividends distributed since 2018
• Positioned to benefit from Australia’s low-carbon transition and Henderson Defence Precinct investments

Robust Financial Performance in Q1 FY26

Civmec Limited has delivered a strong operational and financial performance for Q1 FY26, reporting revenue of A\$190.4 million, EBITDA of A\$23.1 million (an EBITDA margin of 12.1%), and NPAT of A\$21.3 million (net profit margin of 5.5%). The company paid a fully franked final FY25 dividend of 3.5 cents per share on 24 October 2025, contributing to a total FY25 dividend of 6.0 cents per share. Since 2018, Civmec has distributed A\$123.3 million in dividends, representing an attractive yield for shareholders.

As of 30 September 2025, Civmec’s order book stands at A\$1.15 billion, reflecting continued strong demand across its core sectors.

Strategic Acquisition of Luerssen Australia and Defence Expansion

On 1 July 2025, Civmec completed the acquisition of Luerssen Australia Pty Ltd, securing full ownership of its operations, workforce, assets, and licences. This move was a pivotal step in cementing Civmec’s position as a leading sovereign shipbuilder, and on 1 October 2025, Luerssen Australia was rebranded as Civmec Defence Industries (CDI), now a wholly owned subsidiary.

CDI continues to achieve major milestones across the SEA1180 Offshore Patrol Vessel (OPV) project, Australia’s largest steel naval shipbuilding initiative undertaken in Western Australia. Key achievements in Q1 FY26 include:

• Support System Effectiveness Demonstration completed
• Formal acceptance of OPV 2
• Keel laying of OPV 6
• Rollout and launch of OPV 3 in October 2025

At Henderson, four OPVs are currently under construction, with Civmec well-positioned to capture future opportunities at Fleet Base West/Henderson, estimated at A\$12-25 billion as part of the Commonwealth’s long-term defence precinct investment. This strategic positioning is expected to drive future earnings and shareholder value, representing a major price-sensitive development for Civmec.

OEM Materials Handling: Full-Service In-House Capability and Major Growth Pipeline

Civmec is now the only Australian company offering a fully integrated balanced machines capability—from design and engineering through to manufacturing, construction, maintenance, and spares management. The company has rapidly grown its OEM team to around 100 professionals (a 12x increase since 2023), demonstrating a significant ramp-up in expertise and capacity.

Currently, two material handling machines are in manufacture with three more in design. A major upgrade contract for a large-scale bucket wheel reclaimer has also been secured, as part of a port outflow optimisation initiative. The upgrade includes machine assessments, engineering, fabrication, mechanical and structural upgrades, cabling, and software enhancements, with work scheduled to continue through 2027.

This division has an estimated opportunity pipeline of >A\$3 billion, positioning Civmec for significant future revenue and profit growth.

Maintenance Expansion and Recurring Revenue Growth

Civmec continues to prioritise the expansion of its maintenance order book and recurring revenue streams through sustaining capital works and long-term service agreements. There is increasing demand for maintenance of materials handling machines, with recent contracts such as upgrades to six balanced machines for Rio Tinto’s Cape Lambert Port A facility.

Regional facilities are also driving growth. Civmec has finalised a long-term service agreement for rotable equipment repair work at Port Hedland, with activity set to increase. In Gladstone, new pipe processing equipment has boosted fabrication capacity, supporting further expansion in Queensland’s industrial and resources sectors.

Outlook: Dividend Yield, Engineering Capability, and Strategic Positioning for Growth

Shareholders benefit from Civmec’s consistent dividend payments, with the company maintaining an attractive yield and a strong record of A\$123.3 million in payouts since 2018. Early Contractor Engagement (ECI) is becoming more frequent, especially for larger, more complex projects, leveraging Civmec’s multidisciplinary, vertically integrated service model to drive superior project outcomes.

The acquisition of Luerssen Australia has further enhanced Civmec’s engineering and design capability, particularly in naval shipbuilding and OEM materials handling, increasing its capacity to deliver future projects and strengthening its competitive position.

Civmec’s regional operations and strategic facilities are supporting the growth of recurring revenue, while Australia’s transition towards a low-carbon economy is opening up a strong pipeline of opportunities, not just in lithium and rare earths but also in green infrastructure and low-emission technologies.

Importantly, Civmec’s location and Tier 1 contractor status at Henderson position it to participate in the Commonwealth’s major A\$12 billion Defence Precinct development (potentially up to A\$25 billion), announced by the Prime Minister in September 2024. This landmark initiative will deliver continuous naval shipbuilding and AUKUS capability, presenting a transformational growth opportunity for Civmec and its shareholders.

Potential Share Price Sensitivities

• Major new defence contracts and ongoing milestones in naval shipbuilding (including OPVs and Henderson Defence Precinct) could drive significant re-rating of Civmec’s share price.
• OEM division growth and execution of large materials handling contracts may yield upside to earnings forecasts.
• Expansion of recurring maintenance revenue through new agreements in Port Hedland and Gladstone reduces cyclicality and enhances valuation.
• Dividend stability and yield may attract further income investors.
• Exposure to green infrastructure and low-carbon opportunities positions Civmec for long-term structural growth.

Disclaimer: This article has been prepared for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own analysis and consult professional advisers before making investment decisions. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those projected.

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