James Fisher’s 2025 numbers at a glance – margin up, debt down, orderbook up
James Fisher and Sons has called 2025 a turning point, and on the underlying numbers that looks fair. After stripping out last year’s disposals and the staged closures in Middle East and Africa inspection work, revenue rose and profits stepped on. Reported figures are noisier because 2024 contained big disposal gains, but execution and cash discipline clearly improved across the Group.
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue – reported | £394.4m | £437.7m | -9.9% |
| Underlying revenue (ex disposals & closures) | £377.2m | £361.7m | +4.3% |
| Underlying operating profit (ex disposals & closures) | £28.6m | £18.3m | +56.3% |
| Underlying operating margin (ex disposals & closures) | 7.6% | 5.1% | +250 bps |
| Reported profit before tax | £4.3m | £54.0m | n/a (disposal gains in FY24) |
| Underlying profit before tax | £15.3m | £11.9m | +28.6% |
| Underlying EPS | 20.2p | 18.1p | +11.6% |
| Net debt | £54.4m | £56.1m | -3.0% |
| Leverage (covenant) | 1.3x | 1.4x | Improved |
| ROCE (ex disposals & closures) | 8.6% | 6.1% | +250 bps |
| Defence orderbook | £317m | £306m | +£11m |
Why the “underlying adjusted” view matters
Two lenses are used here. Reported results show what passed through IFRS. “Underlying” strips out one-offs like restructuring. The company adds a further filter – excluding prior-year disposals and staged closures – to show the continuing portfolio. On that basis, revenue grew 4.3% to £377.2m and underlying operating profit jumped 56.3% to £28.6m, lifting margin by 250 bps to 7.6%. That is the crux of the turning point claim.
The statutory comparison looks weak because FY2024 banked £54.9m of disposal gains. There is also a statutory loss per share of 8.7p in 2025, mainly due to non-underlying costs and a chunky tax charge. If you care about the quality of earnings in the ongoing business, the adjusted view is the sensible yardstick.
Divisional performance – where the improvements came from
Defence – accelerating profitability and orderbook visibility
- Revenue up 10.9% to £88.8m; underlying operating profit rose to £5.5m from £1.9m, with margin up 380 bps to 6.2%.
- Orderbook ended at £317m, plus around £50m expected under frameworks and c.£15m run-rate commercial diving revenue.
- Notable wins include a submarine rescue and saturation diving system for Poland’s Ratownik vessel and a service contract for Tactical Diving Vehicles in Asia.
- New products launched, including next-generation Stealth multi‑role rebreathers, with further tech due in 2026.
Opinion: Defence is moving from promise to delivery. The orderbook provides multi-year visibility and the US Special Security Arrangement should help unlock that market. Watch for execution and margin progression as volumes scale.
Energy – turnaround bearing fruit despite softer well testing
- Excluding disposals and closures, revenue edged up 1.7% to £141.4m and underlying operating profit rose 23.1% to £17.6m; margin 12.4% (+210 bps).
- Decommissioning swung to profit and expanded into offshore wind, including the world’s first monopile removal in the US.
- Simplification continues with staged closures in Middle East and Africa IRM, targeting full exit of assets by end-2026.
- Innovation pipeline included electric compressors for Norway, SEABASS enhancements for plugging and abandonment, and Cable Guardian sea trials.
Opinion: The mix shift towards higher-return activities is working. The soft patch in well testing, especially in Africa, shows the macro is still choppy, but the margin step-up says the self-help actions are landing.
Maritime Transport – margins up sharply, fleet modernisation underway
- Ex disposals, revenue grew 3.1% to £147.0m; underlying operating profit jumped 44.4% to £20.8m; margin 14.1% (+400 bps).
- Tankships utilisation hit 95% (2024: 89%). Four new dual-fuel vessels arrive in 2026‑27 under 20‑year, $25m leases each.
- Fendercare dialled back lower-margin activity in tougher geographies, with South America a bright spot.
Opinion: This is quietly becoming a returns engine. The newbuilds should bring efficiency and emissions benefits, though lease liabilities have stepped up as the fleet refresh gets closer.
Cash, debt and liquidity – comfortably within the guardrails
- Cash from operating activities improved to £66.9m, helped by a £10.8m working capital inflow.
- Capex was £25.0m and development spend £8.0m, tilted to Energy and Tankships renewal.
- Net debt fell slightly to £54.4m; covenant leverage is 1.3x, mid-point of the 1.0‑1.5x target range.
- Facilities increased post year-end to £117.5m from £92.5m by adding a new bank in March 2026; liquidity at year-end was £37.0m against a £20.0m floor.
- Interest cover improved to 6.9x, while the pre-tax cost of debt reduced versus 2024.
Opinion: Balance sheet risk is lower than it has been for years. The rise in lease liabilities reflects three newly leased vessels in 1H 2025, but banking headroom and interest cover look healthy.
What the Board is targeting next
The medium-term markers remain a 10% underlying operating margin and 15% ROCE. On the continuing portfolio, margin is 7.6% and ROCE is 8.6%, so there is still distance to travel but the direction is right. The dividend is still on hold; reinstatement will wait until earnings and cash flows are more predictable.
2026 guidance and market backdrop
- Performance expected to be second-half weighted.
- Planned capital investment of £30‑35m.
- Interest on bank borrowings around 8.0%.
- Newbuild tankers delivering in 2026 and 2027 with 20‑year leases.
- Underlying effective cash tax rate around 2025 levels, influenced by mix.
End markets are largely supportive: defence spend is rising globally, offshore wind aftermarket is a growing opportunity, and maritime should benefit as the refreshed fleet arrives. Short-term oil and gas markets remain volatile and geopolitical risks are not going away.
My take – the bull and bear points for investors
What’s positive
- Margin expansion across all divisions and a 56.3% jump in underlying operating profit on the continuing base.
- Defence orderbook up to £317m with clear product momentum and international partnerships.
- Cash generation improved, leverage at 1.3x, facilities increased to £117.5m.
- Portfolio simplified, with underperforming IRM operations being exited and Decommissioning now profitable.
What to keep an eye on
- No dividend yet and a statutory loss per share of 8.7p due to non-underlying costs and a higher 32.7% underlying effective tax rate.
- Exposure to oil and gas activity levels and geopolitics, which already dented well testing and Fendercare volumes in certain regions.
- Execution risk on large Defence programmes and on delivering the 2026 second-half ramp.
- Lease liabilities rising with fleet investments, even though returns should improve.
Key milestones to watch in 2026
- Conversion of the £317m Defence orderbook and progress on Tactical Diving Vehicles, with first deliveries scheduled for Q4 2026.
- Asset sales and contract novations as the Middle East and Africa IRM exit completes by end-2026.
- Renewables aftermarket traction from Cable Guardian and blade or cable services.
- Cash conversion and working capital discipline staying tight, keeping leverage within the 1.0‑1.5x range.
- Evidence of progress towards the 10% margin and 15% ROCE targets.
Bottom line
Strip out the noise from last year’s disposals and 2025 shows a business getting fitter: better margins, stronger cash flow, and a healthier defence book. There is more to do before dividends return and the medium-term targets are reached, but the core engine is running more smoothly. If management keeps converting the order pipeline and holds discipline on delivery and costs, 2026 should build on this base.
