Hansen Technologies (HSN) H1 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 rose 6.1% year-over-year to AUD 178 million, driven by the powercloud acquisition and a major $50 million five-year contract with VMO2, with further acceleration expected in H2 2025.

• Powercloud turnaround is complete, now cash generative and expected to deliver positive underlying EBITDA for FY25, with restructuring and workforce streamlining delivering AUD 31 million in annual savings.

• Strategic investment of CAD 2 million (AUD 2.2 million) for a 30% stake in Dial AI to enhance AI-driven customer engagement and call center optimization.

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

Financial highlights

• H1 2025 operating revenue was AUD 178 million (+6.1% year-over-year); underlying EBITDA fell 26.9% to AUD 38.1 million, and cash EBITDA dropped 37.0% to AUD 29.1 million.

• Underlying NPAT declined 77.1% to AUD 4.6 million; basic EPSa fell 53.4% to 6.19 cents.

• Dividend of AUD 0.05 per share declared, totaling over AUD 9 million, with a payout ratio of 81%.

• Operating cash flow decreased by AUD 20 million to AUD 10.4 million, impacted by lower EBITDA and higher working capital.

• License revenue in H1 was AUD 13.2 million; H2 is expected to exceed AUD 25 million, with full-year license revenue over AUD 38 million.

Outlook and guidance

• FY25 guidance reaffirmed: revenue AUD 398–405 million (5–7% growth), underlying EBITDA AUD 92–101 million, and cash EBITDA AUD 76–85 million, with H2 expected to be significantly stronger due to new contracts and upgrades.

• Underlying EBITDA margin expected at 23–25%, cash EBITDA margin at 19–21%.

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