Rubicon Water (RWL) H1 2025 earnings summary

Executive summary

• Revenue for H1 FY25 was $32.0m, up 27% sequentially but down 3.9% year-over-year, with strong growth in the US, Europe, and Rest of World, offset by a sharp decline in Asia.

• Net loss after tax improved to $1.4m from $5.6m loss year-over-year, aided by income tax benefit and FX gains.

• Underlying EBITDA loss was $1.7m, a 64% sequential improvement but $1.0m worse year-over-year.

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

• Globalization strategy and intelligent technology for agricultural water supply are driving new market opportunities and growth.

Financial highlights

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

• Net debt reduced from $31.3m to $14.9m, supported by positive cash flow and capital raises.

• Net assets increased to $69.5m as of 31 Dec 2024.

• US revenue up 22% year-over-year; Europe up 97%; Latin America up 166%; Asia down 96%.

• $4.4m of aged Asian receivables collected in H1 FY25.

Outlook and guidance

• Strong pipeline with 13 near-term projects valued at up to $164.2m, with $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, with 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.