Gentrack Group (GTK) H1 2025 earnings summary

Executive summary

• Revenue increased 9.8% year-over-year to $112m/NZD 112 million for H1 2025, with recurring revenue up 17% and strong performance in both utilities and airports segments.

• EBITDA rose 5.1% to $13m, reflecting higher investment in sales, product, and operational efficiency.

• NPAT surged 34.7% to $7.2m, aided by a lower effective tax rate and forex gains.

• Cash balance reached $70.7m, up $4m since year start and significantly higher year-over-year.

• The company is expanding internationally into Asia, the Middle East, and Europe, with a strengthening pipeline and focus on global leadership in energy and water retail modernization.

Financial highlights

• Recurring revenue growth of 17% was a key driver, with non-recurring revenues down 12% due to high project activity in the prior year.

• Utilities revenue increased 7.2% to $92.8m; Veovo revenue surged 24% to $19.2m, with strong project and recurring revenue growth.

• EBITDA margin before LTI costs was 17%, slightly down from 18% last year due to increased investment.

• Effective tax rate dropped to 21% (21.3%), benefiting from share-based payment tax relief.

• Cash and cash equivalents at $70.7m; net cash inflow from operations $2.9m.

Outlook and guidance

• FY25 revenue expected at or above $230m/NZD 230 million, with EBITDA margin above 12%.

• Midterm guidance targets >15% CAGR revenue growth and 15-20% EBITDA margin after expensing all development costs.

• Recurring revenue is expected to continue growing, with new wins and project scoping in both core and new markets.

• Continued progress anticipated in both Utilities and Veovo, with strong pipelines and further international expansion targeted.

• No interim dividend declared; capital allocation to be reviewed regularly.