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.

• Powercloud acquisition contributed $18.4m in five months, exceeding guidance, with integration progressing and leadership changes implemented.

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

• Over 400,000 R&D hours invested, with a focus on innovation, AI integration, and global sustainability strategy; Australian operations certified carbon neutral for the third year.

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

Financial highlights

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

• Underlying EBITDA margin expanded to 26%; Underlying Cash EBITDA margin at 22%; Core business underlying EBITDA margin at 30%.

• Powercloud reported a loss of $7.4m EBITDA, in line with expectations.

• Underlying NPATA declined to $39.7m, mainly due to reduced R&D capitalization and tax effects.

• Net leverage ratio at 0.3x, with $37m debt repaid and $18.4m in dividends paid.

Outlook and guidance

• FY25 organic operating revenue growth expected at 5–7% off a baseline of $379m.

• Powercloud targeted to be EBITDA positive before the last quarter of FY25, with losses not expected to exceed -$5m.

• 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.

• Capitalised R&D for FY25 not expected to exceed ~$5m.