FY25 guidance upgrade following improved 1H FY25 result
| Stock | Boom Logistics Ltd (BOL.ASX) |
|---|---|
| Release Time | 21 Feb 2025, 8:31 a.m. |
| Price Sensitive | Yes |
FY25 guidance upgrade following improved 1H FY25 result
- Revenue driven by strong project activity particularly with wind farms and transmission lines
- EBITDA increase due to improved margins, tight cost controls, and operational optimisation
- Rise in operational NPAT driven by successful implementation of Boom's strategic plan
Boom Logistics Limited (ASX: BOL), a diversified lifting and project logistics business, announces its results for the six months ended 31 December 2024 (1H FY25). The company's operating result (excluding deferred tax benefit) saw revenue driven by strong project activity, particularly with wind farms and transmission lines, leading to an EBITDA increase due to improved margins, tight cost controls, and operational optimisation. This rise in operational NPAT was driven by the successful implementation of Boom's strategic plan. Statutory NPAT of $19m includes $14m of deferred tax benefits, and the company's net cash position was bolstered by strong cashflow from operations. Boom also continued its on-market share buyback program, totalling $1.4m in 1H FY25, with further buybacks planned for 2H FY25. As a result of the improved 1H FY25 performance, Boom has upgraded its FY25 full year guidance, with revenue unchanged at $263m, but EBITDA increasing by $1m to $51m, operational NPAT increasing to $9m (previously $8m), and statutory NPAT increasing to $23m (including the $14m deferred tax benefit). The company's CEO, Ben Pieyre, highlighted the energy transition in Australia and Boom's role as a partner of choice, as well as the company's robust operational performance, healthy cash flow, and improved balance sheet position, which sets it up for further growth in 2H FY25 and into FY26.
Revenue $263m (no change), EBITDA $51m (+$1m due to strong 1H), Operational NPAT $9m (+$1m), Statutory NPAT $23m (includes $14m in deferred tax benefits)
Boom is in a strong position to benefit from significant growth opportunities in the Renewables and Infrastructure markets, as Australia continues to transition to renewable energy sources. The FY25 priorities focus on optimising resource and asset efficiencies to drive improved profitability and cash generation.