Rubicon Water (RWL) H1 2025 earnings summary

Executive summary

• Celebrated 30 years in business, with 70% of revenue generated outside ANZ, reflecting successful globalization and expansion into new markets such as Egypt, Morocco, Kazakhstan, and India.

• Focused on intelligent technology for agricultural water supply, addressing climate change and water scarcity.

• Achieved a strong cashflow turnaround with $2.2m operating cash inflow in H1 FY25, compared to an $8.5m outflow in the prior period.

• Significant improvements in EBITDA, EBIT, and net loss after tax, with net loss after tax reduced to $1.44m from $5.62m year-over-year.

• Revenue reached $32.0m, down 3.9% year-over-year but up 27% sequentially, with strong growth in Rest of World and ANZ segments offset by a sharp drop in Asia.

Financial highlights

• Operating cash inflow of $2.2m in H1 FY25, compared to an outflow of $8.5m in the prior period.

• Revenue for H1 FY25 was $32.0m, down from $33.3m in H1 FY24 but up from $25.1m in H2 FY24.

• Gross margin improved to 42.2% from 36.3% in H2 FY24, slightly below the prior year’s 44%.

• Net loss after tax of $1.44m, a $4.2m improvement year-over-year.

• Net assets increased to $69.5m as of 31 Dec 2024, with net debt reduced from $31.3m to $14.9m and gearing lowered from 57% to 21%.

Outlook and guidance

• Strong pipeline with 13 near-term projects valued at $164.2m, with $60m close or likely to signing and $8.4m in new signings since December.

• Majority of revenue from recently signed contracts yet to be recognized, expected to boost second half earnings.

• Confident in reaching profitability as annual revenues approach $67m; significant operating leverage expected beyond this level.

• Anticipates a turnaround in the Asia segment in the second half, especially in India.

• Recurring revenue from maintenance, support, and software continues to grow.