Gentrack Group (GTK) H1 2026 earnings summary

Executive summary

• Group revenue for H1 2026 was $110.1m, down 1.7% year-over-year, with recurring revenue rising 12% to $85.3m and non-recurring revenue falling 30% due to project delays and completions.

• EBITDA (excluding acquisition costs) was $7.9m, down from $13.0m year-over-year, mainly due to lower utilities project revenue and continued investment in growth.

• Statutory NPAT was $5.1m, down from $7.2m, aided by a $3.9m tax credit related to LTI costs.

• Two acquisitions, DTP and Factor, were announced, enhancing AI-driven pricing, forecasting, and airport management capabilities; both funded from cash reserves.

• No interim dividend declared; a share buyback of up to $20m was announced, subject to market conditions.

Financial highlights

• Recurring revenue increased 12% to $85.3m, while non-recurring revenue dropped 30% to $24.9m.

• EBITDA (excluding $0.6m acquisition costs) was $7.9m, down from $13.0m in H1 2025.

• Cash balance at period end was $73.2m, with no external debt.

• Net cash outflow from operations was $8.7m, reflecting typical first-half working capital seasonality.

• Basic EPS was $0.05, down from $0.07 in H1 2025.

Outlook and guidance

• FY26 revenue expected between $229m and $238m, with recurring revenue projected to grow over 10% to ~$174m.

• EBITDA guidance for FY26 is $13.5m–$20m, excluding acquisition costs.

• Medium-term growth target reaffirmed at over 15% CAGR, with EBITDA margin expected to improve to 15–20%.

• No interim dividend for H1 2026; share buyback of up to $20m planned.

• Utilities pipeline includes 10 qualified opportunities, targeting 3–4 wins by March 2027, representing circa 30 million meter points in Europe and APAC.