Hansen Technologies (HSN) H1 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 was $178.0m, up 6.1% year-over-year, driven by the inclusion of powercloud and a $50m five-year contract with VMO2.

• Powercloud turnaround is complete, now cash generative and expected to deliver positive Underlying EBITDA for FY25.

• Strategic investment of $2.2m (CAD 2m) for a 30% stake in Dial AI, enhancing AI-driven customer solutions.

• Share price increased ~18% during H1 2025, with a 5¢ dividend per share maintained.

• Net profit after tax (NPAT) fell 99.6% to $0.1m, reflecting one-off restructuring and acquisition costs.

Financial highlights

• H1 2025 operating revenue rose 6.1% to $178.0m; underlying EBITDA was $38.1m (down 26.9%), and cash EBITDA was $29.1m (down 37.0%).

• Basic EPSa: 6.19¢ (down 53.4%); NPAT: $0.1m (down from $17.6m); underlying NPAT: $4.6m (down from $20.1m).

• Dividend of 5¢ per share declared, totaling over $9m.

• Underlying EBITDA margin: 21.4% (down from 37.8% in 1H24); leverage ratio: 0.5x.

• Operating cash flow: $10.4m, down $20.0m from prior year due to lower EBITDA and higher working capital.

Outlook and guidance

• Full-year revenue growth guidance reaffirmed at 5–7%, with H2 expected to be a record half, exceeding $200m in revenue.

• Underlying EBITDA guidance maintained at $92–101m, with strong January results and significant services revenue expected.

• Licence fees expected to rebound in 2H25 following the VMO2 agreement.

• FY26 expected to be net cash positive, with some revenue and project implementations delayed into FY26.

• Industry tailwinds anticipated across both Energy & Utilities and Communications & Media verticals.