Civmec Delivers Strong Q3 FY26 Result as Order Book Expands to A$1.3 Billion

About Civmec Ltd

Civmec Ltd (ASX: CVL) is an integrated, multi-disciplinary construction and engineering services provider operating across the energy, resources, infrastructure, marine and defence sectors. The company is headquartered in Henderson, Western Australia, and also has regional offices in Newcastle, Gladstone and Port Hedland. Its capabilities include heavy engineering, shipbuilding, OEM equipment, modularisation, structural, mechanical and piping works, electrical and instrumentation, precast concrete, site civil works, maintenance, insulation, surface treatment, refractory and access solutions.

Earnings momentum remained strong

Civmec’s third-quarter numbers showed a clear uplift in activity and profitability. Revenue for Q3 FY26 was A$244.2 million, up from A$158.5 million in Q3 FY25, representing growth of 54.1 per cent. EBITDA increased 44.4 per cent to A$27.8 million, while NPAT rose 68 per cent to A$13.5 million.

For the nine months to 31 March 2026, revenue reached A$624.7 million, EBITDA was A$73.8 million and NPAT was A$34.9 million. EBITDA margin for the nine-month period remained strong at 11.8 per cent, while net profit margin was 5.6 per cent. Earnings per share for the nine months was 6.86 Australian cents, with Q3 EPS of 2.65 cents.

The result highlights Civmec’s ability to convert higher work volumes into earnings while maintaining disciplined project execution. Although the Q3 EBITDA margin of 11.4 per cent was slightly below the 12.1 per cent recorded in Q3 FY25, the company still delivered strong absolute earnings growth and maintained a healthy nine-month margin profile.

Order book provides stronger visibility

The most important feature of the update was the size of the order book. Civmec reported an order book of A$1.3 billion, compared with A$760 million at Q3 FY25, representing an increase of more than 70 per cent. The order book includes the award of the Perth Park project for Main Roads WA.

This level of secured work gives Civmec a stronger platform for future revenue visibility. The company said the order book reflects its success in converting tendering activity into secured work and the depth of its client relationships across resources, energy, infrastructure, marine and defence.

Tendering activity also remains robust and well distributed across the company’s operating sectors and capabilities. Civmec said it continues to see strong engagement across multiple early contractor involvement processes for medium- to large-scale opportunities. This suggests the current order book may not be the end of the growth cycle, with a broader pipeline still being pursued.

Resources activity continued to expand

Resources remained a major area of operational progress during the quarter. Civmec mobilised to BHP’s Nelson Point site for the Port Debottlenecking Project 2 earthworks and concrete package, supporting the installation of a sixth car dumper. Piling works are now underway, while fabrication of structural steel modules and the car dumper itself is progressing at the Henderson facility.

The company also reported positive progress on the SMP bridging, tank builds and civil scopes for Iluka Resources’ Eneabba Rare Earths Refinery. Civmec continues to work with Iluka on tendering activities for the main SMP electrical and instrumentation packages.

Other resources work included the Yara 26 Major Plant Turnaround, where mobilisation is well advanced and pre-planning is ahead of the scheduled shutdown. Civmec also secured an early contractor involvement engagement for Rio Tinto’s Car Dumper 3 replacement and is shortlisted for Rio Tinto’s Parker Point shutdown works.

Energy work added further momentum

The energy sector also contributed to Civmec’s positive quarter. Chevron awarded the company a follow-on DE-PMP module package for the Gorgon CO₂ long-term optimisation programme, building on previous work delivered at Henderson. Civmec also won the Blakemere Manifold for Woodside, with fabrication now underway at Henderson.

In addition, smaller packages were secured from Chevron and Saipem, including vessel and loadout support scopes. The investor presentation also noted continued progress on the Saipem Jansz-Io Compression project, where Civmec is manufacturing nine subsea jumper spools and five spreader bars, with first spool loadouts scheduled in the coming quarter.

This shows Civmec’s Henderson operations remain central to its ability to deliver complex fabrication and module work for major energy customers.

Infrastructure and defence remain strategic opportunities

Civmec also continued to build momentum in infrastructure and defence. Steel fabrication is progressing at Newcastle for the Mothers Bridge and Cassidy Parade footbridges in Wagga Wagga, supporting the Albury to Illabo section of Inland Rail. The Woodford bridge project for Transport for NSW has been delivered and installed, and Transport for NSW has since awarded three further bridge remediation scopes.

The company also secured M5 fabrication works in NSW, including steel structures for a new three-lane bridge over the Georges River. Meanwhile, early works for the Perth Park project are already underway.

Defence remains a key long-term opportunity. The SEA1180 Offshore Patrol Vessel programme continues to progress, with the Integrated Baseline Review targeted for mid-2026. Civmec also noted that the Australian Government’s 2026 National Defence Strategy recommitted to all six Arafura Class vessels and added A$1.0 billion to A$1.5 billion of funding over 10 years, mainly for sustainment. The strategy also confirmed a A$25 billion funding envelope for the Henderson Defence Precinct.

Balance sheet and shareholder returns remain supportive

Civmec’s investment case is also supported by real asset backing and continued shareholder returns. The investor presentation noted that Civmec has paid 6 cents in dividends over the past 12 months, with cumulative dividends since FY18 of A$155.5 million. It also highlighted net tangible asset value per share of A$1.05, supported by A$564.3 million in property, plant and equipment.

Outlook

Civmec appears to be entering the final quarter of FY26 with strong momentum. The key positives are the expanded A$1.3 billion order book, strong nine-month margins, broad project exposure and growing tender activity across resources, energy, infrastructure, marine and defence.

The main risks remain project execution, cost pressures, labour availability and timing of new contract awards. Even so, Civmec’s integrated capability, blue-chip client base and large order book provide a solid foundation for continued growth into FY27.