Rubicon Water (RWL) investor relations material

Executive summary

• Revenue for H1 FY26 was AUD 29.0 million, down 9% year-over-year, mainly due to FX impacts and US government funding delays, with a net loss after tax of AUD 6.4 million, up from a AUD 1.4 million loss in the prior year.

• Underlying EBITDA loss widened to AUD 5.9 million, down AUD 4.2 million year-over-year.

• Major contract wins included AUD 11.9 million in Chile, Costa Rica, and Italy, with strong H2 momentum from AUD 9.3 million in new contracts since January.

• First direct corporate-funded contract in the US and expansion into floodplain management with a new AUD 2.7 million Australian contract.

• Corporate funding for water stewardship and ESG-driven projects is emerging as a significant new growth avenue.

Financial highlights

• Revenue declined by AUD 3.0 million year-over-year, with AUD 1.7 million due to FX and lower volumes in the US and Australia.

• Gross margin fell to 35.5% from 42.2% year-over-year, with 4.8% of the gap due to revenue shortfall and FX, and 1% from US tariffs.

• Operating expenses rose by AUD 1.2 million, mainly from higher employee costs and legal fees related to exiting a China JV.

• Net debt increased to AUD 19.5 million from AUD 14.3 million at June 2025.

• Operating cash outflow was AUD 2.9 million, compared to an inflow of AUD 2.2 million in the prior year.

Outlook and guidance

• Expects a materially stronger H2 and FY26, driven by improved market conditions, conversion of near-term projects, and a robust base business.

• Over AUD 30 million in tenders expected to close soon, with material impact on FY26 results.

• Pipeline includes 18 priority projects totaling AUD 189 million, with AUD 61 million in the close category.

• Corporate and floodplain management projects are expected to provide scalable new revenue streams.

• Directors expect debt funding facilities to remain in place through February 2027, with cash flow forecasts dependent on project completions and receivable collections.