• Group Revenue down 2.3% in FY25, but improvement in 2H25
• Gross Profit Margin up 20bps, reflecting pricing discipline and supply chain efficiencies
• Underlying EBITDA down 11.9%, but 10.6% growth in 2H25

Big River Industries Limited (ASX: BRI) has announced its financial results for the 12-month period ending 30 June 2025 (FY25). Group Revenue of $405.1m in FY25 was down 2.3% on the previous corresponding period (-6.6% on a like-for-like basis), reflecting challenging market conditions. However, the revenue decline moderated in the second half, improving from -3.3% in the first half to -1.2% (-8.8% to -4.3% on a like-for-like basis), reflecting progress in stabilization efforts. Gross Profit Margin of 26.2% in FY25 was up 20bps on the previous corresponding period, reflecting ongoing pricing discipline, supply chain efficiencies, and closer alignment with key suppliers. This margin expansion was achieved despite softer volumes and heightened competition. Operating Expenses rose 2.9% in FY25 compared to the previous corresponding period, but fell 2.7% in the second half (-5.9% on a like-for-like basis) as targeted efficiency initiatives implemented in late the first half and early second half gained momentum. Underlying EBITDA of $28.7m in FY25 fell 11.9% on the previous corresponding period. However, the revenue stabilization, gross profit margin resilience, and operating cost reductions drove EBITDA growth of 10.6% in the second half compared to the previous corresponding period, with second-half EBITDA margins of 7.2% up 80bps on the previous corresponding period. The Group remains in a strong balance sheet position, with a gearing ratio of 20.1% and operating cash flow conversion of 100.1%.

The Group expects residential market activity to remain soft in early FY26, though early indicators point to a modest recovery through the year. Commercial market activity is expected to remain comparatively stable, with solid project pipelines heading into FY26. Queensland is expected to be the Group's fastest-growing market, with medium-term expectations also underpinned by investment related to the upcoming 2032 Brisbane Olympics.

Key priorities for FY26 include growing market share in key differentiated segments, improving margins further through pricing, mix, and supplier alignment, ongoing operational improvements across the network, continued data alignment and integration of sales systems, and disciplined capital allocation to support selective growth. The business continues to explore targeted value-accretive acquisition opportunities. While market conditions remain challenging, the Group enters FY26 with a leaner and efficient cost base, clear strategic priorities, and a strong platform for medium-term growth.