Braemar reports lower H1 profit amid challenging shipping market

Published 25/09/2025, 07:58
 Braemar reports lower H1 profit amid challenging shipping market

Investing.com - Braemar Plc (LSE:BMS), a leading provider of investment, chartering and risk management advice to shipping and energy markets, reported lower revenue and profit for the first half of fiscal year 2026 as challenging market conditions and currency headwinds impacted performance.

The company expects HY26 revenue to be approximately £63.8 million, down 16% from £76.0 million in the same period last year.

Underlying profit before acquisition-related expenditure is anticipated to be around £5.5 million, compared to £8.0 million in HY25, representing a 31% decrease.

Braemar attributed the weaker performance to lower chartering rates, geopolitical volatility, and a significantly weaker US dollar.

However, the company noted that its diversified business model helped mitigate these challenges, with strong performances in both its Investment Advisory and Risk Advisory divisions.

"We have made good progress with our strategic priorities and continue to benefit from the resilience of our diversified business model. Our solid H1 performance was achieved despite a challenging trading environment, ongoing weaker chartering rates and competition for talent across the industry," said James Gundy, Group CEO of Braemar.

Despite the challenging first half, Braemar maintained its full-year outlook, citing an improving market environment.

The company reported that its forward order book remained strong at $73.8 million at the end of August 2025, though down from $80.9 million a year earlier, and has strengthened further in September.

The company noted that chartering rates have improved at the start of the second half, particularly in Tankers, and sale and purchase activity is increasing. As a result, Braemar expects its performance to be second-half weighted, consistent with historical patterns.

Net debt stood at £5.6 million at the end of August 2025, up from £2.5 million at the end of fiscal year 2025, following the completion of a £2.0 million share buyback program.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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