James Fisher and Sons (LON:FSJ) told investors its 2025 full-year results marked a “turning point” in a three-year turnaround focused on simplifying the group, strengthening the balance sheet, and improving operational delivery. Chief Executive Officer Jean Vernet said the company’s efforts to “focus, simplify and deliver” have produced measurable progress and created a platform for growth, while Chief Financial Officer Karen Hayzen-Smith highlighted a stronger second half and improving profitability across the group.
Full-year performance: revenue growth, margin expansion, and lower leverage
Management reported a 4% uplift in like-for-like revenue in 2025 and a 60 basis point improvement in underlying operating margin to 7.6%. Return on capital employed (ROCE) rose 250 basis points to 8.6%. The company ended the year with covenant leverage at 1.3x, described as the midpoint of its target range.
Drivers of profit improvement cited on the call included:
- Turning around a previously loss-making decommissioning business
- Improved “flow-through” from execution in Defence
- A strong finish for Fendercare
- Efficiency savings across the group while continuing to invest in capabilities
Division results: Defence growth, Energy margin strength, Maritime Transport rebound
Defence delivered stronger second-half trading, with revenue up around 11% to just under £89 million. Operating profit rose to £5.5 million and margin improved to 6.2%. The division ended 2025 with an order book of £317 million, plus about £50 million of orders under framework agreements. Management also referenced an annual run rate of around £50 million in commercial diving, saying the division entered 2026 with strong revenue coverage. Growth in the year was attributed mainly to a new special forces tactical diving vessel contract.
Energy revenue increased 2% to £141 million, while operating profit rose about 23% to £17.6 million, lifting margin to 12.4%. The company described mixed conditions in well services, including softening in Africa as some projects were phased out, alongside a strong performance in subsea and decommissioning with continued second-half improvement. In renewables, offshore wind construction activity using its bubble curtain technology was described as steady; the blades and cable repair aftermarket made progress, though management said some areas were still not meeting hurdle rates.
Maritime Transport posted improved profitability. Tankships revenue increased more than 7.5% to £86.5 million on improved rates and utilization, and Capstone volumes were described as consistent. Fendercare revenue fell slightly to just over £60 million but delivered a strong second half, driven by increased operations in South America and a simplified site portfolio aimed at higher-margin areas. Overall, Maritime Transport operating profit rose more than 44% to £20.8 million, with margin increasing to 14%.
Cash flow, refinancing benefits, and added banking headroom
On the income statement, Hayzen-Smith said the full-year benefit from 2024 debt reduction and refinancing was “clearly seen,” with finance interest down from just over £16 million to £9.5 million. Lease interest increased by £2 million to £6.4 million, mainly due to additional vessel lease interest in Fendercare.
Operational cash flow improved, helped by a working capital inflow of more than £10 million. Management cited strong debtor collection, including recovery of cash on the Mozambique contract (some of which had been outstanding in 2024), as well as recovery of historic debts. Inventory increased by £5 million to support growth contracts.
CapEx was £25 million, including spend on new compressors (including units supporting electrification requirements) and Tankships deposits. The company spent £8 million on development expenditure, primarily related to new products in Defence. Net finance interest paid was £7.2 million, comprising £9.4 million of bank interest at an average interest rate of around 8.5%, offset by £2.2 million of interest income. Net debt finished 2025 at £54 million.
The company also announced it signed an amendment to its banking facilities adding a new bank to its revolving credit facility, providing £25 million of additional headroom and increasing facilities to £117.5 million. Management said its leverage target remained unchanged.
Turnaround progress, cost structure changes, and the path to a 10% margin
Vernet said the first two years of the turnaround were focused on stabilizing the business and simplifying the organization under a “One James Fisher” operating model, while 2025 reflected a more focused portfolio, strengthened balance sheet, and clearer leadership structure.
The company reiterated its medium-term targets of a 10% underlying operating profit margin and 15% ROCE, while noting it has not set a precise timeline. Hayzen-Smith said “depending on how conditions work,” the group could reach its targets within one or two years, adding that analyst consensus suggested a two-year timeframe for reaching a 10% margin. She emphasized the company is balancing margin progress with ongoing investment to support scale and growth.
Management said four levers underpin margin improvement—self-help cost reductions, supply chain savings, defence volume flow-through, and turning around underperforming businesses—and that 2025 included incremental improvements in all four. Vernet added that supply chain integration delivered £4.6 million of savings in 2025 and that a three-year integration plan would continue.
In the Q&A, executives addressed a question about corporate costs rising from £2.8 million in 2021 to £15.3 million in 2025, attributing the change to a different group structure and increased investment in core capabilities such as technology support (including hiring a chief technology officer), procurement and supply chain, and people systems and HR frameworks. Vernet contrasted what he called a prior “portfolio company” model with the current approach of building central capabilities to enable organic growth.
Growth priorities: customer relationships, geographic expansion, and innovation
Management said it plans to drive top-line growth through “three engines”: deepening relationships with tier-one customers, expanding existing products and services into new geographies, and investing in innovation. Vernet said the company entered Japan, Uruguay, and the U.S. in 2025, and highlighted steps to develop a global talent pool and consistent service delivery worldwide.
The company said it developed six new products across all divisions in 2025 and pointed to a “vitality index” increasing to 9.9%, moving toward a 15% target. Asked when new products might “move the needle,” Vernet said some—such as next-generation rebreathers—could be “game changing” but would take time to scale because they are sold through tender processes that can take months to years, while other incremental products addressing specific customer challenges could generate faster revenue response. He said he expected vitality from new products to start contributing in the current year.
Vernet also noted the company’s corporate venture activity, saying it made its first investment in February by taking a minority stake in Ocean Aero, described as a U.S.-based technology company with a sustainable automated underwater vehicle.
Within Defence, Vernet cited increasing global defense spending and demand for specialist capabilities, and referenced a contract with the Polish Navy for a submarine rescue and saturation diving system and a long-term service contract supporting tactical diving vehicles in Asia. He also said the company established new service centers in the U.K. and Australia and described progress in the U.S., including a special security agreement allowing direct engagement with the U.S. military.
In Energy, management described the market as shaped by energy security and decarbonization, noting cyclical softness in 2025 conditions. Vernet referenced regional expansion and contract wins, including well test contracts in the Philippines and multi-rig services in Brazil and Suriname, as well as commissioning services in Japan for what he described as Japan’s largest offshore wind farm. He also said the company completed what it called its first offshore wind decommissioning project in the U.S., a 10-meter monopile cutting job.
In Maritime Transport, the company said conditions were supportive in 2025 and that Tankships utilization remained high, with 80% of the fleet on long-term contract. Management said four new tankers are scheduled for delivery across 2026 and 2027 as part of a fleet modernization plan.
Looking to 2026, management said trading had started in line with expectations. Vernet also addressed the ongoing conflict in the Middle East, saying employee safety is the top priority and that the company mobilized its emergency response team on March 1. He said it was too early to estimate the business impact but that the company was monitoring developments closely. In Q&A, he said most Middle East oilfield services activity had continued, though activity related to Qatar had stopped, and that the company had chosen not to conduct ship-to-ship transfer work in the Gulf for now due to safety concerns.
About James Fisher and Sons (LON:FSJ)
James Fisher and Sons plc is a leading provider of unique marine solutions in Energy, Defence and Maritime Transport. The Group pioneers safe, innovative solutions that solve complex customer challenges for industries and governments around the world.
For more information visit www.james-fisher.com
