Isle of Man ferry operator's profit rises to £12.3m as passenger numbers hit record high

The Isle of Man Steam Packet Company made a £12.3m profit in 2025 as passenger numbers reached a record high, according to its latest annual report.

Profit for the year attributable to the group’s owners was £12.34m, up from £6.86m in 2024. This is the group’s bottom-line profit after accounting for its other income and costs.

Its operating profit, which measures how much the business made from its day-to-day operations before those other costs and income, also rose significantly from £7.2m to £12.3m.

Revenue increased by 3.9% from £87.2m to £90.6m, with the group attributing the improved performance to increased passenger and freight demand, the absence of an asset impairment recorded in the previous year and what it described as well-controlled operating costs.

A record 682,907 passengers were carried during 2025, an 8.2% increase on the previous year.

The annual report says Manxman's new regular winter weekend service to Liverpool, alongside the popularity of the 'children go free' initiative, contributed to the increase.

More than 69,000 children travelled under the initiative during the year, which was introduced as part of a wider strategic reset of fares in October 2024.

Passenger ticket revenue increased by 2.6%, while passenger service revenue rose by 12.9%.

The Steam Packet said increased awareness of Manxman's lounge and cabin offerings, improvements to catering and retail services and higher passenger numbers all contributed to the rise in passenger service revenue.

However, freight revenue fell despite more goods being carried.

The amount of freight meterage shipped increased by 4.3%, but freight revenue fell by 1.8%. The company attributed this to reductions in market-linked fuel surcharges under its Sea Services Agreement with the Isle of Man Government.

The group also generated £4.4m from charters of the Arrow and Ben-my-Chree, compared with £2.4m in 2024.

Operating costs fell by 3%, which the company attributed to lower global fuel prices and improvements in port charges.

The accounts also show the group's net debt fell substantially during the year, from £114.7m at the end of 2024 to £96.2m at the end of 2025.

It repaid £5.2m of debt during the year and paid £2.3m in interest to its parent, the Treasury, compared with £2.5m in interest payments in 2024.

A £1m dividend was also declared and paid during 2025, compared with no dividend in the previous year.

The annual report comes as the Steam Packet continues to operate under its Sea Services Agreement with the Department of Infrastructure.

The agreement gives the company sole use of the King Edward and Victoria Pier linkspans and is currently due to run until the end of 2047, following extensions agreed during the coronavirus pandemic.

It comes at the same time it was revealed repairs and dry-docking work on the Manxman are now expected to cost around £5m, with the company confirming the bill will be paid directly by themselves from its own reserves.

The state-owned ferry operator has also confirmed the flagship is still expected to return to service towards the end of November, after specialist work on its propulsion shafts, liners and bearings was completed in Denmark.