Gentrack Group (GTK) investor relations material

Executive summary

• Group revenue for H1 2026 was $110.1m, down 1.7% year-over-year, with recurring revenue up 12% to $85.3m and non-recurring revenue down 30% due to project delays and completions.

• EBITDA (excluding acquisition costs) was $7.9m, down from $13.0m, mainly due to lower utilities project revenue and continued investment in growth.

• Statutory NPAT was $5.1m, down from $7.2m, aided by a $3.9m tax credit related to LTI costs.

• Cash at period end was $73.2m, with no external debt, reflecting typical first-half outflows; full year expected to be cash generative before acquisitions and buybacks.

• Two acquisitions (DTP and Factor) were announced in May 2026, enhancing AI and forecasting capabilities in airport and energy segments.

Financial highlights

• Recurring revenue increased 12% year-over-year to $85.3m, while non-recurring revenue dropped 30% to $24.9m.

• Operating costs rose 11% to $102.4m, reflecting increased investment in capability, sales, and product.

• Cash outflow of $11.6m in H1, mainly from employee-related payments; working capital inflow expected in H2.

• Basic EPS was $0.05, down from $0.07 in H1 2025.

• Net cash outflow from operations was $8.7m, reflecting typical first-half seasonality.

Outlook and guidance

• FY26 revenue expected between $229m and $238m, with recurring revenue projected to grow over 10% to ~$174m.

• EBITDA guidance (excluding acquisition costs) set at $13.5m–$20m.

• Medium-term growth target reiterated at >15% CAGR, with EBITDA margin target of 15–20%.

• No interim dividend declared for H1 2026; share buyback of up to $20m announced, subject to market conditions.