Rubicon Water (RWL) H2 2025 earnings summary

Executive summary

• Achieved record revenue of AUD 69.1 million in FY25, up 18.3% year-over-year, driven by strong growth in the U.S., EMEA, and Rest of World segments, now operating in 22 countries with over 70% of revenue generated internationally.

• Net loss after tax narrowed to AUD 7.0 million from AUD 11.0 million in FY24, reflecting operational improvements and one-off costs related to U.S. tariffs, freight, and China joint venture restructuring.

• Operating cash inflow reached AUD 5.4 million, the highest since FY18, reversing a prior year outflow and supporting a reduction in net debt.

• Major contracts secured in the U.S., Mexico, Costa Rica, and Italy, including landmark projects and the largest single contract in LATAM.

• Strategic review and restructuring of China operations completed, with a new joint venture established and exclusive China-wide rights secured.

Financial highlights

• Revenue increased 18.3% year-over-year to AUD 69.1 million, the strongest since 2021.

• Gross margin improved to 41.4%, despite negative impacts from international freight and U.S. tariffs.

• Underlying EBITDA loss reduced to AUD 4.6 million, with a reported net loss after tax of AUD 7.0 million.

• Operating cash flow positive at AUD 5.4 million, a AUD 12.4 million improvement over FY24.

• Net debt reduced by 55% to AUD 14.3 million, lowering gearing from 58% to 22%.

Outlook and guidance

• Entering FY26 with a strong pipeline of 22 major projects valued at AUD 184 million, with expectations for continued growth in the U.S., Europe, and Asia.

• Anticipates further revenue growth as new contracts are signed and delivered, with multi-year contracts and recurring revenue from software and support services contributing to future results.

• Optimistic about China and India markets following restructuring and new joint venture partnerships.

• Focus on strict working capital management and continued geographic expansion.