Steam Packet reports rise in passengers and profit

A record 682,907 passengers were carried during the year

The Isle of Man Steam Packet Group has reported a profit of £12.3m for the year ended 31 December 2025, up from £6.9m the previous year.

The group said operating profit rose to £12.3m from £7.2m in 2024 while revenue grew by 3.9% to £90.6m.

The directors' report attributes the improved performance to increased passenger and freight demand, no asset impairments following a £2.2m impairment on the vessel Arrow in 2024, and well-controlled operating costs.

A record 682,907 passengers were carried during the year, an 8.2% improvement on 2024, which contributed to a 2.6% increase in passenger ticket revenues. Passenger service revenues rose 12.9%, driven by what the company describes as increased awareness of Manxman's lounge and cabin offerings, ongoing improvements to catering and retail services and higher passenger volumes.

The company also revealed it spent £14.8m with Isle of Man-based groups during the year, up from £14.5m in 2024. It provides support to over 200 individuals, charities and organisations on the Island.

Freight revenues fell 1.8% despite a 4.3% increase in meterage shipped, which the company attributes to reductions in Sea Services Agreement market-linked fuel surcharges. Charter revenue more than doubled to £4.4m from £2.4m, with charters secured for both Arrow and Ben-my-Chree.

Operating costs fell 3% following reductions in global fuel prices and improvements in port charges. The company also noted that port dues and charges for the year include a release of £1.1m following the successful conclusion of port call and handling contract negotiations.

A dividend of £1m was declared and paid by the group during the year, compared with £Nil in 2024.

The group also settled debt obligations of £5.2m and interest payments of £2.3m with its parent, the Treasury, a Department of the Isle of Man Government. Net debt at year-end stood at £96.2m, down from £114.7m.

The Sea Services Agreement, under which the company operates was subject to a select committee review that concluded in April 2025. The company says it is awaiting revised terms.

It is currently required to delivery the replacement for Manannan by 31 December 2026, which the company expects to be amended under the planned SSA revisions.

Following a public consultation in February 2026, the board is progressing plans to replace Manannan with a fast conventional ro-pax vessel capable of delivering a year-round service and reduced environmental impact.

From July 2026, Ben-my-Chree will operate a regular service to Northern and Southern Ireland, improving island connectivity. The vessel will receive a significant upgrade to its passenger facilities prior to entering service.