How Did Advanced Innergy Beat FY25 Forecasts and What’s Next After Ovun?

Strong FY25 Performance Exceeds Expectations

Advanced Innergy Holdings Ltd (ASX, AIH) has delivered an impressive set of unaudited proforma results for the fiscal year ending 2025, surpassing the forecasts laid out in its recent prospectus. The company posted revenue of A$335.5 million, marking a 16% increase over the previous year and slightly ahead of its prospectus projection. More notably, EBITDA surged by 50% to A$59.0 million, reflecting improved operational leverage and efficiency across its diversified segments.

Net profit after tax (NPAT) more than doubled to A$25.8 million, a 134.5% increase on FY24, underscoring the company’s robust profitability trajectory. Earnings per share rose to 6.1 cents, also beating market expectations. This strong financial performance comes despite the company’s recent IPO in October 2025, which injected A$78.5 million in capital, strengthening its balance sheet and net cash position to A$1.5 million.

Strategic Acquisition of Ovun Enhances Marine Segment

A key highlight of FY25 was the acquisition of Ovun, a Norwegian specialist in high-tech polymer-based products, completed in September 2025. This acquisition tripled the company’s marine segment revenue and broadened its product portfolio, particularly in the fast-growing aquaculture market. Integration of Ovun is progressing ahead of schedule, with synergy savings already being realised through inter-group supply chains and expanded engineering capabilities.

Ovun’s contribution to revenue was slightly below initial forecasts due to contract phasing, with some revenues expected to flow into FY26. Nevertheless, Ovun’s gross profit margins and operating expenses aligned well with expectations, reinforcing the strategic value of the acquisition.

Diverse Global Operations and Innovation Drive Growth

Advanced Innergy operates across 22 locations in 14 countries, serving blue-chip clients such as Baker Hughes, Chevron, Saipem, Subsea 7, and Total Energies. Its product offerings span thermal insulation, subsea ancillaries, and marine applications, underpinned by a portfolio of over 180 patents and 93 type approvals. The company’s focus on mission-critical infrastructure protection in energy and industrial markets positions it well amid the global energy transition.

Innovation remains a core pillar, with the recent acquisition of CAPSE establishing Advanced Innergy Testing (AIT), a leading European battery testing facility. This supports the company’s expansion into battery protection products, expected to contribute to revenues in FY26. Additionally, the company is developing sensor-enhanced subsea offerings and expanding offshore wind cable protection systems, reflecting its commitment to emerging markets.

Robust Outlook and FY26 Guidance

Looking ahead, Advanced Innergy reconfirmed its FY26 guidance, forecasting underlying revenue of A$387.9 million and EBITDA of A$62.3 million. The current orderbook stands at approximately A$220 million, covering about 57% of the FY26 revenue forecast, with a pipeline of opportunities exceeding A$2.4 billion. This strong backlog, combined with a high proportion of repeat business, provides significant revenue visibility.

The company’s growth strategy focuses on organic expansion in core markets, leveraging innovation and product development, and pursuing targeted mergers and acquisitions, particularly in the Asia-Pacific region. Management highlights accelerating investment in energy projects, including deepwater oil and gas and offshore wind, as key drivers underpinning demand.

Governance and Operational Excellence

Advanced Innergy’s experienced board and management team bring extensive international expertise, with notable figures such as Chairman Russell Ward and Non-Executive Director Sir Ben Wallace. The company employs around 800 staff globally, with a strong emphasis on engineering and production roles, safety, and talent development programs. Operational improvements have contributed to a declining incident rate, reflecting a commitment to workplace wellbeing.