Rubicon Water (RWL) H2 2024 earnings summary

Executive summary

• FY24 revenue increased to AUD 58.4 million (up 13% year-over-year underlying, or 5.8% reported), with record US performance and a 200% increase in US orders.

• Underlying EBITDA loss narrowed to AUD 2 million (or $5.4 million), a 77% improvement from last year, despite $3.4 million in one-off impacts from China and Chile.

• Largest-ever contracts secured in Latin America (Costa Rica, $2.5 million) and the US (California, $4.5 million, stage one of a five-year program).

• AUD 16 million ($16.0m) capital raise completed to support global expansion and strengthen the balance sheet.

• Expanded presence to 22 countries, with personnel outside ANZ doubling over five years.

Financial highlights

• Reported FY24 revenue was AUD 58.4 million ($58.4m); underlying new revenues (excluding China contract reversals) were AUD 62.5 million, up 13% year-over-year.

• Gross margin improved to 40.2% (up from 33.7%), driven by favorable project mix and strong US/India performance.

• Underlying EBITDA loss (excluding one-offs) was AUD 2 million ($5.4m), a 77% improvement from last year's AUD 8.8 million loss.

• Net debt at year-end was AUD 31.6 million ($31.6m), with gearing at 57% pre-capital raise; pro forma net debt post-capital raise reduced to AUD 15.6 million.

• Net loss after tax was $11.0m, slightly improved from $11.2m loss in the prior year.

Outlook and guidance

• Strong pipeline of AUD 225 million ($225m+) across 310 projects in 20 countries, with 12 key transformational opportunities representing 65%-70% of near-term projects.

• Growth expected to be driven by international markets, especially the US, India, Central Asia, North Africa, and Europe.

• Recurring revenue from software and maintenance is expected to grow as capital projects transition to support phases.

• Focus on clearing older Asian receivables in the first half of FY25.

• FarmConnect™ product expected to be a major growth driver outside the current project pipeline.