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 cash generation.

• EBITDA rose 5.1% to $13m, reflecting higher investment in sales, product, and R&D.

• NPAT surged 34.7% to $7.2m, aided by a lower effective tax rate (21%) and $2.1m in FX gains.

• Cash balance at period end was $70.7m, up $4m since year start and $31.4m year-over-year, maintaining a robust balance sheet.

• No interim dividend declared; capital prioritized for growth and international expansion.

Financial highlights

• Recurring revenue grew 17% year-over-year, while non-recurring revenue declined 12% due to prior high project activity.

• 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% (down from 18% prior year), with margin for H1 2025 at 11.6%.

• Effective tax rate dropped to 21% from 35.5%, lowering tax expense despite higher pre-tax profit.

• Share of loss from Amber (10% equity stake) was $1.1m for six months, reflecting ongoing investment.

Outlook and guidance

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

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

• Expansion focus on Asia, Middle East, and Europe, leveraging early wins and a growing pipeline.

• Recurring revenue from new contracts like Utility Warehouse will ramp up in FY2026 and beyond.

• No dividend planned for H1 25; capital allocation to be reviewed regularly.