Revenue growth has decelerated to -9.5% YoY in 2026Q2, and gross margins have exhibited extreme volatility, swinging from 33.3% in 2026Q1 to 20.8% in 2026Q2, highlighting significant exposure to volatile freight rates.
BW LPG Limited (BWLP) annual income statement — 10-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 |
|---|
| Sales/Revenue | 3.49B | 3.69B | 3.37B | 3.06B | 1.53B | 1.21B | 892.47M | 818.6M | 490.43M | 496.98M | 494.16M |
| Revenue Growth % | -3.07% | 9.55% | 10.04% | 100.14% | 26.42% | 35.46% | 9.02% | 66.91% | -1.32% | 0.57% | - |
| Cost of Goods Sold | 2.71B | 3.16B | 2.81B | 2.36B | 1.13B | 909.19M | 454.52M | 396.88M | 302.23M | 286.67M | 194.44M |
| COGS % of Revenue | - | 85.57% | 83.53% | 77.16% | 73.81% | 75.21% | 50.93% | 48.48% | 61.62% | 57.68% | 39.35% |
| Gross Profit | 780.58M | 532.23M | 554.25M | 698.47M | 400.3M | 299.71M | 437.94M | 421.72M | 188.2M | 210.31M | 299.72M |
| Gross Margin % | 22.35% | 14.43% | 16.47% | 22.84% | 26.19% | 24.79% | 49.07% | 51.52% | 38.38% | 42.32% | 60.65% |
| Gross Profit Growth % | - | -3.97% | -20.65% | 74.48% | 33.57% | -31.57% | 3.85% | 124.08% | -10.51% | -29.83% | - |
| Operating Expenses | 239.35M | 225.1M | 167.01M | 197.2M | 158.18M | 152.47M | 163.1M | 150.92M | 185.01M | 217.82M | 190.92M |
| OpEx % of Revenue | - | 6.1% | 4.96% | 6.45% | 10.35% | 12.61% | 18.28% | 18.44% | 37.72% | 43.83% | 38.64% |
| Selling, General & Admin | 239.35M | 225.1M | 167.01M | 197.2M | 158.18M | 152.47M | 163.1M | 150.92M | 187.85M | 208.39M | 183.99M |
| SG&A % of Revenue | - | 6.1% | 4.96% | 6.45% | 10.35% | 12.61% | 18.28% | 18.44% | 38.3% | 41.93% | 37.23% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.84M | 9.43M | 6.93M |
| Operating Income | 541.23M | 307.13M | 387.24M | 501.27M | 242.12M | 147.23M | 274.84M | 270.8M | 3.19M | -7.51M | 108.79M |
| Operating Margin % | 15.5% | 8.33% | 11.5% | 16.39% | 15.84% | 12.18% | 30.8% | 33.08% | 0.65% | -1.51% | 22.02% |
| Operating Income Growth % | - | -20.69% | -22.75% | 107.03% | 64.44% | -46.43% | 1.49% | 8378.44% | 142.52% | -106.9% | - |
| EBITDA | 789.96M | 570.58M | 589.42M | 719.15M | 401.54M | 301.43M | 427.29M | 397.07M | 103.87M | 119.83M | 208.27M |
| EBITDA Margin % | 22.62% | 15.47% | 17.51% | 23.51% | 26.27% | 24.93% | 47.88% | 48.51% | 21.18% | 24.11% | 42.15% |
| EBITDA Growth % | 48.57% | -3.2% | -18.04% | 79.1% | 33.21% | -29.45% | 7.61% | 282.29% | -13.32% | -42.46% | - |
| D&A (Non-Cash Add-back) | 248.73M | 263.45M | 202.18M | 217.88M | 159.43M | 154.2M | 152.45M | 126.27M | 100.67M | 127.34M | 99.48M |
| EBIT | 570.09M | 369.47M | 422.8M | 553.65M | 266.74M | 222.27M | 274.84M | 270.8M | 3.19M | -7.51M | 108.79M |
| Net Interest Income | -37.64M | -47.05M | -6.68M | -20.15M | -29.79M | -36.87M | -46.44M | -53.87M | -44.12M | -46.58M | -26.72M |
| Interest Income | 7.16M | 9.58M | 14.75M | 10.5M | 1.9M | 3.35M | 4.55M | 5.36M | 5.09M | 898.45K | 183.43K |
| Interest Expense | 44.79M | 56.63M | 21.43M | 30.66M | 31.69M | 40.22M | 50.99M | 59.23M | 49.21M | 47.48M | 26.9M |
| Other Income/Expense | -12.94M | 5.71M | 14.13M | 21.72M | -7.07M | 34.82M | -6.19M | 5.91M | -71.07M | -37.21M | -85.51M |
| Pretax Income | 528.29M | 312.84M | 401.36M | 522.99M | 235.05M | 182.05M | 268.65M | 276.71M | -67.88M | -44.72M | 23.29M |
| Pretax Margin % | 15.13% | 8.48% | 11.92% | 17.1% | 15.38% | 15.06% | 30.1% | 33.8% | -13.84% | -9% | 4.71% |
| Income Tax | 28.53M | 14.62M | 28.42M | 11.38M | 1.05M | 507.38K | 548.63K | 2.35M | 167.31K | 549.78K | 227.34K |
| Effective Tax Rate % | 5.4% | 4.67% | 7.08% | 2.18% | 0.45% | 0.28% | 0.2% | 0.85% | -0.25% | -1.23% | 0.98% |
| Net Income | 441.26M | 249.43M | 334.62M | 487.7M | 223.04M | 179.99M | 268.11M | 274.31M | -67.11M | -43.14M | 23.69M |
| Net Margin % | 12.63% | 6.76% | 9.94% | 15.95% | 14.59% | 14.89% | 30.04% | 33.51% | -13.68% | -8.68% | 4.79% |
| Net Income Growth % | 100.66% | -25.46% | -31.39% | 118.66% | 23.92% | -32.87% | -2.26% | 508.72% | -55.56% | -282.12% | - |
| Net Income (Continuing) | 499.75M | 298.22M | 372.94M | 511.61M | 234M | 181.55M | 268.11M | 274.36M | -68.04M | -45.27M | 23.06M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -467.58K | 0 | 0 | 0 |
| Minority Interest | 136.05M | 95.54M | 132.46M | 116.1M | 120.37M | 13.82M | 0 | 0 | 482K | 3.29M | 7.04M |
| EPS (Diluted) | 2.90 | 1.64 | 2.49 | 3.53 | 1.65 | 1.30 | 1.94 | 1.98 | -0.48 | -0.30 | 0.17 |
| EPS Growth % | 88.96% | -34.14% | -29.46% | 113.94% | 26.92% | -32.99% | -2.02% | 512.5% | -60% | -276.47% | - |
| EPS (Basic) | - | 1.65 | 2.49 | 3.53 | 1.65 | 1.30 | 1.94 | 1.98 | -0.48 | -0.30 | 0.17 |
| Diluted Shares Outstanding | 152.3M | 151.9M | 134.19M | 133.03M | 135.42M | 138.95M | 138.23M | 138.72M | 140.22M | 141.78M | 136.58M |
| Basic Shares Outstanding | 151.8M | 151.4M | 134.19M | 133.03M | 135.42M | 138.95M | 138.23M | 138.72M | 140.22M | 141.78M | 136.58M |
| Dividend Payout Ratio | - | 82.48% | 116.09% | 83.14% | 56.81% | 55.29% | 47.23% | 21.73% | - | - | 442.78% |
Quick answers to the most common questions about buying BWLP stock.
For fiscal year 2025, BW LPG Limited (BWLP) reported total revenue of $3.69B. This represents a 646.2% increase compared to $494.2M in 2016.
BW LPG Limited (BWLP) is profitable, generating $249.4M in net income for the fiscal year ending 2025 with a net profit margin of 6.8%.
BW LPG Limited (BWLP) reported an operating income of $307.1M, resulting in an operating profit margin of 8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
BW LPG Limited (BWLP) generated $532.2M in gross profit for the year, representing a gross profit margin of 14.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Volatile Margins and Earnings
Revenue Growth Decelerates Sharply
BW LPG's revenue growth has decelerated significantly, turning negative in the last two quarters with a -9.5% year-over-year decline in 2026Q2, suggesting a potential peak in the shipping cycle.
The company's top line has shifted from robust double-digit growth in early 2024 to consistent year-over-year declines in the most recent periods. This deceleration, particularly the -10.3% drop in 2025Q4 followed by a -9.5% decline in 2026Q2, indicates that the favorable market conditions that drove prior expansion may be fading. Investors should monitor whether this represents a cyclical downturn or a more structural shift in LPG shipping demand.
Gross Margin Volatility Undermines Profitability
Gross margins have exhibited extreme volatility, swinging from a low of 11.0% in 2025Q2 to a high of 33.3% in 2026Q1, highlighting the company's exposure to volatile freight rates and fuel costs.
The wide range in gross margin, from 11.0% to 33.3% over the past ten quarters, underscores the highly cyclical and volatile nature of the LPG shipping business. The recent compression to 20.8% in 2026Q2, after a brief recovery, suggests that pricing power is inconsistent and heavily dependent on external market conditions. This volatility makes it challenging to forecast sustainable profitability and contrasts sharply with the more stable margins of peers like DLNG and FLNG.
Operating Leverage Amplifies Earnings Swings
Operating income has demonstrated extreme sensitivity to revenue changes, with a -41.2% quarter-over-quarter decline in 2026Q2 despite only a -9.5% revenue drop, indicating high fixed-cost exposure.
The company's operating margin compressed from 26.4% in 2026Q1 to 13.6% in 2026Q2, a significant deterioration that amplified the impact of the revenue decline on the bottom line. This suggests a cost structure with substantial fixed components, likely related to vessel operations and crew costs, which do not scale down proportionally with revenue. The resulting earnings volatility is a key risk for investors seeking stable returns.
Net Income Swings Driven by Core Operations
Net income has been highly volatile, ranging from $29.9M to $164.9M over the past ten quarters, with the quality of earnings appearing tied directly to the cyclical shipping market rather than non-operating items.
The swings in net income and EPS closely mirror the volatility in gross profit and operating income, suggesting that reported earnings are a direct reflection of the underlying business cycle. The minimal impact of stock-based compensation, which was zero in most recent quarters, indicates that earnings are not being artificially inflated by non-cash charges. However, the extreme volatility itself raises questions about the predictability and sustainability of the company's earnings power.
2025Q2 Marked a Cyclical Trough
The second quarter of 2025 appears to represent a significant operational inflection point, with gross margin hitting a cycle low of 11.0% before a subsequent, albeit uneven, recovery.
The period ending June 2025 saw the company's lowest gross margin (11.0%) and operating margin (5.9%) in the dataset, likely reflecting a trough in the LPG shipping market. The subsequent quarters showed a recovery in profitability, with 2026Q1 reaching a peak operating margin of 26.4%, before another downturn. This inflection highlights the company's acute sensitivity to market cycles and suggests that operational performance is heavily dictated by external freight rate environments.
Margin Compression Risks Persist
The strongest challenge to BW LPG's income statement narrative is the persistent risk of margin compression, as evidenced by the recent decline in gross margin from 33.3% to 20.8% in a single quarter.
Short-sellers would focus on the company's inability to sustain elevated margins, as the rapid deterioration from 2026Q1 to 2026Q2 demonstrates how quickly profitability can erode. The current gross margin of 20.8% remains well below the 50%+ levels achieved by peers like DLNG and FLNG, suggesting a structural disadvantage in cost control or asset quality. This margin vulnerability, combined with decelerating revenue growth, paints a challenging picture for future earnings stability.