Morning, everyone, and thank you for joining us. For those less familiar with Boom, we are Australia's only ASX-listed crane and lifting company, operating nationally across 17 locations. Cranes and lifting remain at our core, but we are increasingly more than a crane business, combining our fleet with engineering, workforce solutions, and technology to meet the broader needs of our customers. FY 2026 was a strong year for the business, particularly across earnings, margin, cash generation, and how we are managing shareholder capital. Let me get straight into the results. We are delighted to present the FY 2026 result. There are a few numbers I would particularly call out. Revenue increased 2.4% to AUD 271 million. Underlying EBITDA increased to AUD 53.3 million, and underlying NPAT increased 37.6% to AUD 12.8 million.
Underlying EPS increased 48.2% to AUD 0.329, and free cash flow increased 83% to AUD 18.3 million. Importantly, margins improved.
We are generating better earnings and stronger cash from the business while also strengthening the balance sheet. We are very pleased with that result, and it reflects the improvement we are seeing in the underlying business and how we are managing shareholder capital. The next slide puts that FY 2026 result into a longer-term perspective. Stepping back from the FY 2026 result, the three-year progression is equally important. Revenue has grown from AUD 260 million to AUD 271 million. EBITDA has increased from AUD 46 million to AUD 52 million, and EPS has more than doubled from AUD 0.16 to AUD 0.329, with the on-market buyback also contributing to the FY 2026 EPS result. The important point is the relationship between those numbers. We are growing the revenue base while seeing stronger growth in the earnings and returns coming from the business.
It is being supported by better utilization, improved margins, the quality of the work we are taking on, and how we are allocating capital. When I look at the three-year progression, I see a business producing more from its revenue base and generating better outcomes for our shareholders. That is the direction we are focused on continuing. Onto the next slide. The portfolio has also evolved over the year. Resources remain at our core and represented 55% of FY 2026 revenue, supported increasingly by long-term operational and maintenance work. The structure has grown to 20% of revenue, with transmissions becoming an increasingly important part of our infrastructure business. In renewables, we have deliberately moved to a more selective model, primarily focused on crane and lifting scopes, where the commercial terms, risks, and returns are right for Boom.
Industrials also remain an area where we see opportunities to build longer-term customer relationships. The change in mix reflects the deliberate choices about the work we want to do and the returns we expect from it. I will now hand over to Pieter to take you through the financials.
Thanks, Lester, and good day to all of you on the call. You have heard the key highlights and the broader story of the year. Let me get straight into these financial results. Our revenue up 2% to AUD 271 million. EBITDA increased 4% to AUD 51.8 million, and EBIT increased 11% to AUD 18.6 million. The statutory NPAT comparison needs some context. FY 2025 included the recognition of a AUD 14 million deferred tax asset, which materially increased statutory NPAT in that year. Also in 2026, we separately identified AUD 2.3 million of costs associated with the Clarke Creek incident, a net AUD 800,000 recoupment relating to the misuse of company funds, and a AUD 300,000 loss on asset sales. Therefore, on an underlying basis, NPAT increased 38% to AUD 12.8 million, and underlying EPS increased to AUD 0.329, compared with AUD 0.222 in the previous period.
The improvement reflects stronger margins, utilization, and cost discipline across the business. Turning now to the cash flow on slide eight, please. Strong operating cash flow and improved cash conversion increased our capital management flexibility to invest in the fleet, manage the balance sheet, and deliver shareholder returns. A strong opportunity pipeline and diversified revenue base provide a foundation for organic growth. The improvement in earnings translated into materially stronger cash generation during FY 2026. Net operating cash flow increased 42% to AUD 52.8 million, and free cash flow increased 83% to AUD 18.3 million. Stronger cash generation gives us greater flexibility in how we allocate capital across the business, maintaining and investing in the fleet, managing debt, and returning capital to shareholders. During FY 2026, we purchased AUD 7 million of shares through the on-market buyback and an unfranked dividend of AUD 0.02 per share, totaling approximately AUD 800,000 was paid during FY 2026.
Furthermore, a AUD 0.0225 unfranked dividend has been declared, which will be paid in September, representing an uplift in the dividend paid compared to the previous year. We continue to target returning 40%-60% of prior year's NPAT to shareholders through dividends and/or on-market buybacks while retaining flexibility to invest where appropriate returns are available. Turning now to our debt and funding position on slide nine. Our balance sheet also strengthened during FY 2026. Cash increased to AUD 24.7 million, while the debt reduced from AUD 93 million down to AUD 85 million. This year was AUD 77 million of undrawn facility capacity and remained compliant with all financial covenants. Net gearing was approximately 40% within our target range of 35%-45%. Combination of a stronger cash generation, available funding capacity, and our existing facilities gives Boom flexibility to fund the business while maintaining a disciplined approach to capital allocation.
That flexibility is important as we balance the ongoing requirements of the fleet with selective growth investment where returns meet our hurdle rates. Turning now to slide 16, I will take you through the fleet and asset position before moving to our return on net assets. Boom finished FY 2026 with a fleet of approximately 295 lifting and ancillary assets and a value-weighted average fleet age of 5.9 years. This is within our target range of 5-7 years. Therefore, we now have a fit for purpose portfolio where we are well below the midpoint of our fleet lifespan of 15 years, and hence do not have to make investment decisions under pressure. FY 2026 net CapEx was AUD 16.7 million, comprising AUD 21 million of gross CapEx, less AUD 4.6 million of asset disposals. Labor efficiency and asset utilization both remained around 86%.
Our sustaining investment will continue to focus on safety, productivity, technology, and customer requirements with growth capital deployed selectively where returns meet our investment hurdles. Slide 11 shows that operating and capital discipline translate into our focus on improving returns. Return on net assets is a key measure on how we effectively using the capital investment in the business. RoNA improved from 6% in 2024 to 8% in 2025 and now is at 9%, reflecting the progress we have made through improved utilization, stronger margins, and disciplined capital management. Our aspiration is to deliver sustainable double-digit returns over the medium term. We see a number of levers to get there: improving our asset utilization, strengthening our margin discipline, redeploying assets to higher return markets, rationalizing underperforming assets, and also improving working capital efficiency. Importantly, growth investment will remain disciplined.
We will deploy capital where customer demand is clear and where the expected returns meet our investment hurdles. Ultimately, RoNA brings together margin, utilization, and capital discipline. I'll now hand back to Lester to take you through the broader strategy behind these disciplines.
Thank you, Pieter. Let me now take you through how we're positioning the business going forward. Long-term contracted work anchors this business, giving us greater earnings visibility and supporting utilization of our fleet and people. Around that base, we're selective about the growth opportunities we pursue, looking at the commercial terms, risk, and expected returns. Returns over volume is central to how we're thinking about growth. We want profitable growth supported by strong utilization and disciplined capital allocation. Underpinning it all are our people and safety. How we grow the business matters just as much as where we grow it. These are some good examples of the strategy in action across resources, infrastructure, renewables, and industrials. What I'd also call out is the technology behind the capability. We're continuing to invest in modern equipment and technology that improves safety, productivity, and the solutions we provide our customers.
That's increasingly important as our customer requirements evolve and is another way we're extending our capability beyond providing cranes. Let me now turn to FY 2027. Safety is at the heart of how we operate at Boom. We never lose sight of the fact that behind every job are our people, their families, and the communities we work in. That brings a responsibility we take very seriously. We're always learning and looking at how we can improve, and we continue to invest in our safety systems and the way we plan and execute work. TRIFR improved to 2.0 per million hours worked. That's encouraging, but we're very conscious that safety can't be defined by a single measure. Our focus is on preventing serious harm and making sure our people go home safely. Strategy is only as good as our ability to execute it, and it starts with our people.
We have some of the best people in our industry, and we are continuing to invest in their development and leadership capability to make sure that we have the skills and capacity to support our customers as this business grows. Our social license to operate is equally important, particularly given the regions and communities in which our works takes place. Our Reflect RAP was endorsed during the year, and the focus is now turning that commitment into meaningful Indigenous engagement, employment, and participation opportunities. We are also preparing for our FY 2027 sustainability reporting requirements. For us, these are not separate ESG initiatives. They are part of how we look after our people, build stronger relationships with our customers and communities, and maintain our license to operate over the longer term. Looking ahead to FY 2027, we enter the year with a solid foundation.
Our focus is on continuing to improve earnings, quality, growing our base of long-term contracted work, protecting margins, and maintaining strong asset and labor utilization. Resources remain the anchor, and we continue to see good opportunities across infrastructure, alongside selective participation in renewables and in industrials. We expect to invest more in our fleet in FY 2027, supporting customer demand and growth opportunities where the returns make sense. We are also budgeting for continued EPS growth. Alongside that, we are targeting up to AUD 7 million through the share buyback, subject to board approval. We have the balance sheet and the cash generation to invest in the business while continuing to focus on the returns to shareholders. We are well-positioned entering FY 2027 and focused on continuing on the progress that we have made so far.
To bring it all together, we believe there is a very good story here for our shareholders. We are improving earnings quality and cash generation while maintaining shareholder capital, while managing shareholder capital more effectively. At national scale, modern specialized fleet, strong customer relationships, and broader capability across engineering workforce solutions and technology. We are positioned across markets where we continue to see long-term demand and opportunities for profitable growth. Ultimately, our focus is on translating that into continued EPS growth, sustainable returns on the capital we deploy, and long-term value for our shareholders. That brings me to the end. Thank you for your time. Pieter and I are now happy to take any questions.
Thank you. If you would like to ask a question by the phone, you will need to press the star key followed by the number one on your telephone keypad. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. If you would like to ask a question via the webcast, please enter it into the ask a question box and click submit. Your first question today from the phone comes from James Tracey from Blue Ocean Equities. Please go ahead.
Hi, Lester. Hi, Pieter. Thanks for taking my call. The question from me is about the outlook for FY 2027. I think the notable thing for the FY 2026 year was the very high growth in profit relative to sales. You have 2% revenue growth, NPAT 38%, and then you have EPS, which is 50% with the buybacks. Could you just give a bit more. You have been doing a lot of work beneath the surface around margins, utilization, cost discipline, capital allocation, this whole concept of profitable utilization as opposed to just having the assets being used but not making a profit on them. Could you just give a bit more color on that and how much scope there is to go to continue doing that work in 2027 and maybe some of the things that give you confidence in your outlook for continued EPS growth into 2027?
I will start before handing over to Pieter, James. Thank you for your question, by the way. Look, the first point I want to make is we have got a really solid foundation and as we spoke earlier and as I addressed earlier, we are budgeting for continued EPS growth. I am confident in the direction that the business is going. Obviously, we are not putting a specific forecast around that today. We also just announced at the back end of June that we have got a significant contract with Olympic Dam, and it is future-facing and it is copper. On that note, I will stop and say solid foundation. There are opportunities that are coming. They have to meet the hurdle rates. But I am pretty confident that we are going to be in a decent position going forward.
Yeah. James, I will just add to that, as you have called out, there is really no single driver. But that double-digit RoNA that we want to get to is really going to be looking again at utilization, what we can improve. I think in a previous conversation with you guys, we have talked about what a small percentage increase in utilization makes to the underlying performance of the business. So we will continue to work on utilization. We have had a long discussion yesterday on the board around our metrics around that, our definitions around that, and what we want to do in the year coming to give some more focus on that. But I think the important part, and again, the free cash flow that came in despite the revenue uplift only 2%, but despite that, the underlying EBIT has just continuously benefited us and our shareholders.
Because I hate using the word chasing revenue, but we are definitely not doing that anymore. We are looking at profitable business, and therefore sometimes we are selective of the work that we take. But we are taking work that we know we can make money and we can do the work safely. So asset deployment, underperforming assets, yeah, we have done a lot of that. You saw we had some losses on the sale of assets this year, and where we have had profits on the sale last year. But it is to that point where we actually get rid of the stuff that is not bringing the levels of all the hurdle rates that we have set ourselves.
You can take some comfort, James, in that the assets will go where the margins are the best. Has wheels and will travel.
Just a quick follow-up on that point. When I visited you up in Brisbane, there was a whole lot of equipment that was going out to do work on electrical transmission lines. I also noticed that, I guess transmission is a more prominent part of your presentation this year versus in the past. Could you perhaps talk to maybe that segment of the market and then the pipeline you've got and maybe any work that's going on generally in the sector? What's your advantage in being able to address some of that demand?
Glad you're not asking me to give away all my trade secrets there, James. No, you're right. Transmission.
Only the ones that you can.
Yes. Look, it is an increasingly important part of our business, and I have sort of moved it into that infrastructure space. We are not really worried about how the energy gets generated. Really, transmission line is infrastructure. The country has to get rewired, and we have competitive advantage in that space, primarily because we have assembled, or sorry, erected a multitude, 1,500 or 1,600 towers already. And we are seeing that our relationships with our clients, it is spanning across both sides of the divide. To that end, and to answer your question, it was a pet project of Pieter when he came on board to make sure that those assets went out. I am glad to report that he has been successful in that endeavor, and he sent them out. Yeah. It is certainly an area of growth for us, James.
Thank you, Lester. Thank you, Pieter.
Thank you, James.
Thank you. Once again, if you would like to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further phone questions at this time. I will now hand over for questions from the webcast to be addressed.
Thanks, Darcy. Lester and Pieter, a number of questions following similar kind of themes to the ones you've just been addressing, but let me just work through each of these in turn. There's a number of them. First one, what does the pipeline and opportunities for material contracts look like, and how should we think about revenue growth after significant EPS growth from the focus on returns?
Adrian, thank you for that question. Look, there'll always be movement in contracts, but what we've got in front of us is a good opportunity set. We recently announced BHP Olympic Dam and our extension there. It'll be the seven-year contract. It's less about a large headline number, but making sure that the opportunities that are in front of us, we convert them, and those that we convert are profitable and meet our return requirements. But again, I'm confident and quite positive going into this new year.
I'll just add to that to say that not every contract that we sign meets the disclosure requirements. A lot of our smaller contracts and the wins that we make is not publicly disclosed. We're confident with the pipeline.
Thanks, Pieter.
Okay. Thanks, gents. The next one, and you spoke a little bit about this earlier, but just slightly different nuance here. What is NPAT and CapEx guidance for FY 2027, noting that you have previously provided qualitative guidance?
Look, I'll start by saying we're in a good position, and we don't have to make fleet decisions under pressure. Pieter touched on that earlier. We can invest where customer demand and returns justify it. It's a 15-year life cycle. Our value-weighted average age is 5.9. Again, it's one of those things. The metrics are good. The CapEx, we spent around AUD 17 million last year. Pick a number between AUD 15 million and AUD 19 million, put it into the model, and that should potentially work, Adrian.
Thanks, Lester. Next question. How would the AUD 200 million of secured contract work for FY 2027 compare to FY 2026 at the same time last year?
Interesting question. Look, the more significant one was the one we announced on the back end of June. Again, I'm more interested in the fact that we're pivoting to longer term maintenance work, and that's reoccurring revenue. That's good. We're chasing the growth opportunities that are profitable that we layer it on top of that. The macroeconomics are changing, but one of the good things is the fact that as a business, within the resources space, we're diversified. We've got exposure to coal, we've got exposure to gold, we've got exposure to iron ore, and we've got exposure to copper. So that gives me comfort, and that's not to mention infrastructure, industrials, and renewables. So, across the board, I'm pretty sure we're doing better. But the pipeline is looking good.
Thanks, Lester. Next one, and this refers to the slide we have in the pack with respect to return on net assets. Referring to that slide, what approximate timeframe do you anticipate to reach the aspiration RoNA target of 15%?
A Pieter question.
Okay. 15% is an aspirational target. As you could see, the journey over the three years has been marginal improvements. If you just want to go on that trajectory, it would definitely not be in the near term, but more in the sort of medium term that we were trying to get there. I'll only keep my job as long as we get to that 15% fairly quickly. Again, like I said, a double digit RoNA in this space where we're capital intensive, is aspirational, and I'll stop at that.
Can I just say, there's no single lever. It's really about getting more from the assets that we currently have and being careful where we put our next dollar.
Okay. Thanks very much, Lester. Thank you, Pieter, and hope you do keep your job. Just the next question: Is the improvement in free cash flow sustainable?
Yes. I think I'll preface it on the fact that the quality of the revenue that we're chasing and the deliberate decisions that we are making with regards to where do we contract, how do we do it, and how do we pick the next piece of work? I think I can say that we're very optimistic, and if we look at our outlook and what we say we're going to do, I think it's something to expect that our free cash flow generation will continue to grow. Again, this is our results presentation. The outlook update will probably come in the next couple of months, but, yeah, positive.
Can we go with quietly confident? That sounds better.
Quietly confident.
Quietly confident, Adrian.
Thank you, Lester. This next one is on capital management, so either of you could take this. What is the company's order of priorities for capital management and allocation?
Look, it is a bucket, right? We have to manage the people that trust us with their money, and therefore we have a program, and the shareholder buyback has been a favorite mechanism as we have generated some more cash to return money to the market. The dividends, as you can see, we have announced a small uplift on the dividends as well. That said, it is always a discussion with regards to different investors, and when we go on the roadshow with you, we will definitely hear again from you specifically with regards to your preference. A lot of people are happy with unfranked dividends, but most of the investors traditionally has preferred to get a franked dividend.
It is a balance and, as Lester, we are talking, if we want to really pivot and play in very different market segments or get into the wind space, that is really intensive. We will make those investment decisions around how do we manage the capital with regards to the contracts that we will be signing in the future.
I will just close on that by saying the key is that every additional dollar we deploy needs to have a clear purpose and an appropriate return. That is generally how we both think about capital deployment.
Yeah, I will also say that we are tightly controlled and squeezed by very active board members in the space with regards to capital deployment.
Thanks, Pieter. Next one, just going back to EBITDA margins. In the second half of the last financial year, underlying the EBITDA margin, is that the base for FY 2027?
Yeah, we should really aspirationally say that is the base. Again, EBITDA, the investment decisions that we are going to make will clearly impact that. But yeah, I think it is right to say it is the base.
Thanks, Pieter. Turning to wind farms. According to this investor, there is a lot of talk in the media about wind farms no longer stacking up financially. How are you seeing the outlook for this sector?
I'll start by saying what we said at the half-year presentation, where it was the lag that we've seen in wind farms was due to the approvals process. There still appears to be a long pipeline, and we think that's going to come off towards the back end of this year, early next year. I'll also address what we've done in the wind space. Adrian, our capability remains, though our participation model has changed. We're just being more selective in how we pursue renewable wind farm work, but the scopes we take on, and we want to make sure that the risks are managed and the returns are appropriate for Boom.
Thank you, Lester. Next we have a very specific question here about your plans for extending the fleet. Any plans to buy larger cranes than the 800 tonnes?
That is a very specific question. In line with the answer I gave just before this, the key is to make sure every additional dollar has a clear purpose and a return. Now, if we've got forward visibility, if we've got utilization commitments and it meets our hurdle rates, nothing's off the table.
That's very consistent, Lester. Thank you. There's a couple more questions to go. When do you expect to be in a tax-paying position?
Look, yeah, if you look in the trajectory, people would be thinking that we'd soon be. I really think that we expect our tax position to evolve as losses are utilized, but we aren't giving a precise cash tax date, so to speak, because it depends on the future taxable income and also legislation with regards to utilization of those tax losses. But I would say medium-term is where I'll stop.
Thank you, Pieter. Perhaps a question for you. It kind of extends the capital management discussion of earlier. You don't mention M&A as part of the strategy. Is this part of your plans going forward?
Adrian, organic growth is our current priority. We've got plenty to do here, right? The pipeline, there's lots to do. If something inorganic comes up, it has to compete like everything else does. If the returns make sense and we pass it up to the board and meets the hurdle rates, it has to be assessed on its own merits. But as a rule of thumb, we don't generally comment on M&A, Adrian, so I'll stop there.
No, that's fine. Look, this final question, which once again would probably be a question best handled by the board, but let me just share it with you anyway. Somebody making an interesting observation. Clearly, you're trading very cheaply at a 20%+ free cash flow yield. Thank you for that observation. If the market continues not to value Boom properly, would you begin to engaging in a strategic review sale process?
You are right, that is a question for the Board.
No, thank you, Lester. I think we have exhausted the crowd. So thank you very much, and let me just pass back to you, Lester, for any final closing remarks.
Thank you, Adrian. Thank you for all listening in, and thank you for the questions. Hopefully we will see you on the roadshow in a couple of weeks. Pieter?
Yeah. No, thank you very much, and thank you really for the questions, too. Making those calculations on the back of the results is just freshly released, so it is good to see that there is interest. Yes, we look forward to.
Seeing you on the roadshow.
Yeah, seeing you at the roadshow and a good year ahead. Thank you. Thank you.