Hansen Technologies (HSN) H1 2026 earnings summary

Executive summary

• Operating revenue for 1H26 rose 7.3% year-over-year to $191.0 million, with both Communications & Media and Energy & Utilities segments contributing positively and strong EMEA performance.

• Underlying EBITDA increased 46.1% to $55.7 million, with margin expanding to 29.2% due to operating leverage, AI-driven productivity, and cost control.

• Underlying NPATA surged 142.3% to $30.5 million; underlying NPAT up 389.1% to $22.5 million, reflecting improved profitability.

• Cash flow from operations grew 417.7% to $53.6 million, supporting strong cash generation and further debt repayment.

• Digitalk acquisition completed for approximately AUD 65 million, expanding global footprint, SaaS revenue, and cross-selling opportunities.

Financial highlights

• Communications & Media revenue up 13.5% to $82.3 million; Energy & Utilities revenue up 3.0% to $108.7 million.

• Cash EBITDA up 68.8% to $49.3 million, with margin at 25.8%.

• Basic EPS based on underlying NPATA rose 141.5% to 14.95 cents.

• Net debt at period end was $51 million after repaying $29.5 million of debt.

• Operating cash flow up 418% from 1H25; closing cash balance at $56.0 million.

Outlook and guidance

• Revenue expected to be higher in 2H26 versus 1H26; targeting ~30% underlying EBITDA margin for FY26.

• Board targets 5-7% organic revenue growth over the medium term.

• Interim dividend of 5.0 cents per share declared, partially franked.

• Margin expansion and productivity gains from AI expected to continue over the next 12-24 months.

• License revenue for FY 2026 projected at 8-10% of turnover, lower than prior year.