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 up 12% to $85.3m and non-recurring revenue down 30% due to project delays and completions, not competitive losses.

• EBITDA (excluding acquisition costs) was $7.9m, down from $13.0m, 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 to enhance AI, pricing, and forecasting capabilities in airport and energy segments.

• The company remains focused on AI-driven automation and energy transition trends, investing in technology to support cost reduction and operational efficiency.

Financial highlights

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

• EBITDA margin (excluding acquisition costs) fell to 7.2% from 11.6% year-over-year.

• Cash balance at period end was $73.2m, with no external debt; first half typically weaker due to timing of outflows.

• Tax credit of $3.9m recognized, compared to a $2m charge in the prior period, due to favorable LTI cost treatment.

• 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 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%.

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

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