Civmec (ASX: CVL) Reports Stable 1H FY26 Earnings as Order Book Strengthens to $1.35bn

Key Highlights

• Revenue reached $380.4 million with steady margins
• EBITDA of $46 million, above expectations
• Net profit after tax at $21.4 million
• Order book expanded to $1.35 billion
• Interim dividend maintained at 2.5 cents, fully franked
  
   

Civmec delivers steady 1H26 with growing order book

Engineering and construction services provider Civmec Ltd (ASX: CVL) has reported a steady set of half-year FY26 results, underscored by resilient margins, stable cash generation and a growing pipeline of projects that positions the company for sustained activity across the resources, infrastructure and defence sectors.

For the six months ended December 31, 2025, the group posted revenue of $380.4 million, broadly in line with expectations, while EBITDA reached $46 million, translating to an EBITDA margin of roughly 12%. Net profit after tax came in at $21.4 million, reflecting a net margin of 5.6%. Earnings per share stood at 4.21 cents, and the company maintained its interim dividend at 2.5 cents per share, fully franked. 

Cash and cash equivalents at the end of the period stood at $87.6 million, providing the group with a solid liquidity position as it continues to pursue large-scale contracts across key industrial markets. 

Order book signals strong forward visibility

Perhaps the most notable feature of the result was the continued expansion of Civmec’s order book, which rose to approximately $1.35 billion from $1.25 billion in the prior quarter. The increase reflects successful tender conversions, new contract wins and growing engagement in early contractor involvement processes for several medium-to-large infrastructure and industrial projects. 

Chairman James Fitzgerald highlighted the significance of this pipeline strength, noting that the expansion of the order book demonstrates the trust clients place in Civmec’s delivery capabilities and reinforces the resilience of its business model. 

Chief Executive Officer Patrick Tallon echoed this sentiment, stating that the company’s results were driven by strong execution and consistent project delivery, adding that the expanding order book provides a firm foundation for upcoming periods and supports the company’s long-term growth strategy.

Source: Company Announcement 

Project momentum across multiple sectors

Operationally, Civmec recorded several key milestones during the half year, highlighting the diversity of its revenue streams. The company secured a significant contract with BHP for the Port Debottlenecking Project 2 at Nelson Point in Port Hedland, covering civil works and structural fabrication associated with the installation of a sixth car dumper. 

In the defence segment, Civmec launched NUSHIP Pilbara, the third Arafura-class offshore patrol vessel constructed at its Henderson shipyard, marking a major milestone for Western Australia’s naval shipbuilding capability. Construction continues on the remaining vessels in the program, supporting sustained activity within the division. 

The company also strengthened its presence in mining decarbonisation infrastructure through contracts with Fortescue to deliver charger facilities and pit power infrastructure supporting electric equipment deployment at mine sites. Additional work on the Christmas Creek Green Iron Project further demonstrates Civmec’s involvement in emerging low-emissions industrial initiatives. 

Infrastructure work continued to contribute to earnings, including steel fabrication and installation packages for Inland Rail footbridge projects in New South Wales, reinforcing the company’s capability in large-scale transport infrastructure development. 

Balanced performance in a mixed industrial environment

Civmec’s latest results reflect a company operating in a stable but competitive engineering services landscape, where execution reliability and long-term contract visibility often matter more than rapid top-line expansion. While revenue growth remained moderate, the combination of stable margins, strong cash reserves and an expanding order book suggests that Civmec is maintaining operational discipline while positioning itself for future project cycles.

The company’s diversified exposure across energy, resources, defence and infrastructure continues to act as a buffer against sector-specific volatility, allowing it to capture opportunities arising from large-scale industrial investment programs across Australia.

With a multi-year pipeline of projects already secured and ongoing participation in tender processes, Civmec appears well-placed to sustain earnings momentum, particularly as demand for engineering services linked to mining productivity upgrades, defence capability expansion and industrial decarbonisation initiatives continues to grow.