The Environmental Group (EGL) investor relations material

Executive summary

• Revenue was flat year-on-year at AUD 112 million, meeting revised guidance, due to delays in the Middle East and ERP implementation challenges.

• EBITDA reached AUD 8.7 million, down 22% year-over-year but within revised guidance, despite significant disruptions.

• Over 55% of revenue is now recurring or contracted, supporting earnings resilience.

• Management team was strengthened with new appointments and strategic acquisitions.

• PFAS treatment business expanded, treating over 5 million liters of contaminated water and gaining international traction.

Financial highlights

• Recurring revenue increased to AUD 61.9 million, now over 55% of total revenue, with a CAGR of 25.2% since FY22.

• Significant items totaled AUD 10.8 million, including a AUD 5.7 million impairment of the Airtight business and $5.1 million in other normalized costs.

• Cash flow from operations was positive at AUD +2.3 million, despite ERP and relocation costs.

• Service revenue in EGL Energy grew to AUD 47 million, now 73% of that division's revenue.

• Cash and cash equivalents at $2.5 million; net debt position of -$3.0 million at year-end.

Outlook and guidance

• EBITDA is expected to increase in FY 2027, with improved margins, especially in the energy business.

• PFAS segment anticipated to grow in importance, with more plant sales and international expansion.

• Baltec faces timing uncertainty due to global events, but the tender pipeline remains strong.

• Major contract win expected to drive growth in EGL Clean Air.

• Recurring revenue base expected to continue growing as PFAS plants come online.