Hansen Technologies (HSN) H2 2024 earnings summary

Executive summary

• Operating revenue increased 13.2% year-over-year to $353.1m, driven by strong growth in Energy & Utilities and the integration of powercloud; core business revenue up 7.3%.

• Powercloud acquisition contributed $18.4m in five months, with integration progressing and EBITDA positivity targeted for Q4 FY25.

• Underlying Cash EBITDA (excluding powercloud) rose 11.1% to $87.1m, reflecting robust cash generation.

• Major wins in Energy & Utilities across Europe and the Americas, with no single customer contributing more than 8% of total FY24 revenue.

• Sustainability strategy implemented globally, with Australian operations certified carbon neutral for the third year and a 17% GHG reduction since FY21.

Financial highlights

• Operating revenue reached $353.1m, up 13.2% from FY23; powercloud contributed $18.4m.

• Underlying EBITDA was $92.4m (down 7.1% year-over-year), with a 26% margin; Underlying Cash EBITDA was $76.9m (down 1.9%).

• Core business underlying EBITDA margin at 30%, in line with guidance.

• Statutory Net Profit After Tax fell 50.7% to $21.1m year-over-year.

• Net leverage ratio at 0.3, with net debt at $23.5m as of June 30, 2024; $37m debt repaid and $18.4m in dividends paid.

Outlook and guidance

• Revenue growth guidance for FY25 is 5–7% off a baseline of $353.1m, with powercloud expected to be EBITDA positive before the last quarter.

• Underlying EBITDA margin forecast at 23–25%; Underlying Cash EBITDA margin at 19–21%.

• License revenue for FY25 guided at $28–32m, weighted to the second half.

• Continued focus on organic and inorganic growth, especially in Energy & Utilities and Communications & Media.