Gentrack Group (GTK) H2 2025 earnings summary

Executive summary

• FY25 revenue reached $230.2m, up 8% year-over-year, with recurring revenues rising 13% to $155.4m and EBITDA up 18% to $27.8m; NPAT more than doubled to $20.9m, driven by tax credits and FX gains.

• Five-year CAGR stands at 22% for revenue and 21% for EBITDA, reflecting consistent performance.

• Cash position strengthened to $84.8m, up $18.1m, with no external debt, supporting ongoing investments and potential acquisitions.

• Major milestones include the first full-scope g2.0 deployment at Genesis, new customer wins in utilities and airports, and NAV CANADA contract opening a new market segment for Veovo.

• Strong international pipeline and robust project backlog position the business for accelerated growth.

Financial highlights

• Group recurring revenue grew 13% to $155.4m; non-recurring revenue declined 1% due to prior year project work.

• Utilities revenue up 7% to $193.4m, with recurring revenue up 12% and non-recurring down 5%.

• Veovo revenue up 15% to $36.8m, with underlying growth of 30% excluding hardware sales; recurring revenue up 18%.

• EBITDA margin improved to 12% (16% before LTI costs); cash conversion at 83% of EBITDA.

• Tax credit of $0.6m in FY25 versus a $5.1m tax charge in FY24, benefiting future cash flow; FX gains of $3.2m supported NPAT.

Outlook and guidance

• FY25 guidance delivered: $230m revenue at 12% EBITDA margin.

• Management expects higher revenue growth in FY26 than FY25, with mid-term targets of >15% CAGR and 15-20% EBITDA margin after expensing all development costs.

• Utilities recurring revenues projected to grow ~10% in FY26; Veovo expected to match or exceed 15% growth.

• Strong pipeline with 10 advanced new customer opportunities representing 30 million meter points.

• Robust project backlog and pipeline in both utilities and airports support positive outlook.