Envirosuite (EVS) H1 2025 earnings summary

Executive summary

• Achieved positive EBITDA of AUD 0.2 million for H1 FY25, the first time EBITDA was positive in a first half, reflecting disciplined cost management and operating leverage.

• Total new sales reached AUD 10.1 million, with 78% of new ARR from existing customers, driven by mining and Americas success.

• Hitachi Construction Machinery invested AUD 10 million at a 32% premium, validating the mining value proposition and ESG potential, with the first deal in advanced negotiation.

• Board refreshed with new Chair, Hitachi representative, and new CFO appointed to drive growth and operational improvements.

• Goal set to double ARR every five years, supported by a 51% growth in the rolling 12-month pipeline for EVS Industrial.

Financial highlights

• Annual Recurring Revenue (ARR) grew 9.3% year-over-year to AUD 65.7 million, with churn LTM at 4.2%.

• Recurring revenue up 4% to AUD 27 million, or 5% when normalized for churn; non-recurring revenue down 27% to AUD 2.5 million.

• Gross profit margin improved to 53.8% (EBITDA basis), with gross profit at AUD 15.9 million.

• Total operating expenses decreased 3% to AUD 15.3 million, despite inflationary pressures.

• Cash at 31 December was AUD 4 million, with AUD 8.7 million in available funds including undrawn debt facility.

Outlook and guidance

• Targeting to double ARR every five years, supported by historical growth trends and improved sales effectiveness.

• Expecting to be EBITDA positive on an annual basis going forward, with NPAT profitability targeted from 2027.

• Record project sales in H1 expected to drive elevated non-recurring revenue and improved cash flow in H2 and into FY26.

• Confident in future pipeline, with new business opportunities and expanded TAM, especially in aviation and mining.

• Strategic review underway to maximize shareholder value and assess long-term opportunities.