James Fisher Reports Solid H1 2025 with Turnaround Driving Structural Improvement

James Fisher H1 2025: margins up on a like-for-like basis, Defence order book surges

James Fisher and Sons has delivered a steady first half, showing the nuts-and-bolts of its turnaround are working beneath the surface. Reported numbers look softer because of 2024 disposals, but on a like-for-like basis the Group lifted margins, trimmed interest costs and beefed up Defence’s order book. Management says trading to the end of August is in line with expectations and full-year guidance is unchanged, with a typical second-half weighting.

Key numbers investors should know

Metric	H1 2025	YoY	Notes
Revenue	£191.9m	(13.4%) reported	Like-for-like (ex disposals) down 0.6%
Underlying operating profit (UOP)	£11.1m	(33.9%) reported	Like-for-like up 14.4%
Underlying operating margin	5.8%	(180 bps) reported	Like-for-like +80 bps to 5.8%
Underlying profit before tax	£4.5m	+4.7%	Helped by lower net interest costs
Reported operating profit	£4.8m	(62.2%)	Higher restructuring and one-off legal costs
Net debt (covenant basis)	£72.1m	(50.2% vs H1 2024)	Net Debt: EBITDA 1.6x
ROCE (like-for-like)	5.1%	+20 bps	Group ROCE on underlying basis 4.8%
Defence order book	£315.1m	+45.2%	Momentum building into H2
Cash from operating activities	£31.2m	+£3.2m	Working capital inflow £7.1m
Basic EPS	(4.8)p	vs (1.7)p	Underlying EPS 0.8p (H1 2024: 6.4p)

Quick jargon buster: “Underlying” strips out one-off costs to show the core run-rate. “Covenant basis” net debt is the definition used for banking tests. ROCE is return on capital employed – a measure of how efficiently the Group earns on its asset base.

What’s really changed: like-for-like progress despite disposals

The headline revenue decline is almost entirely the effect of selling RMSpumptools and Martek in 2024. Excluding those disposals, revenue was essentially flat at £191.9m, while underlying operating profit rose 14.4% and margin widened by 80 bps to 5.8%. That is the structural improvement the turnaround is targeting.

Below the line, non-underlying costs totalled £6.3m, mainly restructuring and professional fees, plus a small impairment in Scantech Norway following portfolio realignment. Finance charges fell 46.4% to £6.7m thanks to deleveraging in 2024 and improved facility terms.

Divisional performance: Energy, Defence, Maritime Transport

Energy: margins rebuilt, decommissioning turns profitable

Revenue was £85.8m and, excluding disposals, down 1.8% after the planned wind-down of a Mozambique contract that reduced revenue by £6.8m early in the year. Strip that out and the rest of the Energy book grew 6.9%, with strength in Norway, Brazil diving operations and decommissioning, which saw demand up 15.0% to £11.7m.

Underlying operating profit reached £9.7m, up 16.9% like-for-like, and margin improved 180 bps to 11.3%. The Bubble Curtain business – noise attenuation for offshore wind – continued to win work in the US and Asia. The division also launched the world’s first monopile removal system with an offshore wind developer, extending its decommissioning know-how into renewables. IRM was quieter than expected, with revenue down 12.9% to £22.8m, particularly in Africa and the Middle East.

Defence: turning the corner with a bigger pipeline

Revenue edged up 3.0% to £37.6m and the division moved from a £0.4m underlying loss to a £0.7m profit. The big story is the order book – £315.1m at June, up 45.2% year-on-year – reflecting a new long-term special operations vehicles contract and wins across submarine platforms and defence diving. A strategic collaboration with Saab was signed, James Fisher Japan was launched, and the US business entered a Special Security Agreement, securing Foreign Comparative Testing tasks and the largest combat diving rebreather order in over five years. A £12.5m UKEF General Export Facility was put in place, with £4.8m utilised by period end.

Maritime Transport: Tankships strong, Fendercare softer

Revenue fell 8.4% to £68.5m due to the 2024 Martek disposal and weaker LNG ship-to-ship activity in Fendercare. Underlying operating profit was £6.9m, down 15.9%. The bright spot remains Tankships – including Cattedown – where revenue rose 5.9%, utilisation stayed high at 90%, and contracted rates held firm. The fleet modernisation is on track, with four sub-intermediate tankers due for delivery in 2026-2027. Fendercare opened a new base in Uruguay to build its Latin American presence, while Brazil remained resilient thanks to a favourable customer mix.

Cash, leverage and liquidity

Cash from operations was £31.2m, aided by stronger debtor collections. Capital expenditure was £16.3m and development spend £2.9m, focused on compressors, lifting equipment, diving systems and vessel upkeep. Net borrowings including leases were £142.7m, reflecting three newly leased vessels in Maritime Transport, but on a covenant basis net debt was £72.1m with leverage of 1.6x. That sits just above the 1.0-1.5x target range due to front-loaded investment in Energy and Defence.

Committed facilities stood at £94.0m with £10.0m undrawn and liquidity of £25.0m against a £20.0m internal minimum. Interest cover was 6.8x versus a 4.5x covenant requirement. No interim dividend was declared, though the Board remains committed to reintroducing a sustainable policy at the right time.

Guidance and technical pointers

• Outlook unchanged; H2 performance weighting expected and trading to August was in line with management expectations.
• 2025 capex (including development) guided to around £35.0m, with a lower H2 weighting.
• Underlying effective tax rate for 2025 expected around 29.0% (note H1 underlying ETR was 75.6% due to withholding taxes and profit mix).
• Effective interest rate on borrowings c.8.5% for 2025; floating rates expected to ease in H2.

My take: why this print matters

• Evidence of structural improvement: like-for-like UOP up 14.4% and margin +80 bps to 5.8% show the “focus, simplify, deliver” mantra is feeding through, especially in Energy where margins hit 11.3%.
• Defence momentum building: the £315.1m order book – up 45.2% – gives visibility and supports the thesis that Defence can return to being a growth engine.
• Balance sheet OK, investing for growth: covenant leverage at 1.6x is reasonable and interest cover is healthy, even after taking on three leased vessels.

Set against that:

• Reported results still messy: non-underlying costs of £6.3m and a basic loss per share of 4.8p cloud the picture. Underlying EPS at 0.8p is low, amplified by a higher tax charge and more shares in issue.
• Fendercare remains soft: LNG ship-to-ship volumes are subdued and vessel costs are elevated. Management has action plans, but recovery timing is uncertain.
• Tax friction: H1’s 75.6% underlying effective tax rate won’t repeat if guidance holds, but withholding taxes and profit mix can still swing the P&L.

What could move the shares next

• Conversion of Defence order book into revenue and margins in H2 and 2026.
• Further margin gains from “self-help” and supply chain integration, particularly in Energy and underperforming units.
• Stabilisation or recovery in LNG ship-to-ship activity within Fendercare.
• Progress on the Tankships fleet renewal and any update on charter rates or utilisation.

Bottom line: a steadier platform with visible catalysts

This is a solid, if unspectacular, half-year that shows the turnaround is doing the heavy lifting where it counts – margins, order book and cash discipline. The narrative shifts from repair to selective growth, particularly in Energy technology (Bubble Curtains, decommissioning) and Defence systems. With the full-year outlook unchanged and H2 weighting intact, delivery through year-end – especially on Defence execution and Maritime stabilisation – is the next proof point. For patient investors, the improving quality of earnings and capital discipline are heading the right way.