Rubicon Water (RWL) H2 2026 earnings summary

Executive summary

• FY26 revenue declined to $61.1 million (AUD 61 million), down from $69.1 million (AUD 69 million), primarily due to U.S. federal funding delays, FX headwinds, and a non-cash derecognition of $4.1 million in deferred tax assets, resulting in a net loss after tax of $15.7 million.

• Positive operating cash flow of $4.5 million was achieved for the second consecutive year, supporting ongoing business operations.

• Major project wins and contract signings in the U.S., Costa Rica, Chile, Oklahoma, Southern California, Italy, and Azerbaijan, with $28.4 million of new work in 2H FY26.

• Corporate-funded water stewardship projects are expanding, including a $1.4 million Nebraska contract and recognition in Google's 2026 Water Stewardship update.

• Technology demonstrated measurable outcomes, such as a 69% reduction in operational spills in California and improved yields and water savings in the Colorado River Basin.

Financial highlights

• Revenue fell 12% year-over-year to $61.1 million, mainly due to U.S. government funding delays and FX impacts.

• Gross margin was 41%, depressed by 1.4 percentage points due to a stronger AUD.

• Underlying EBITDA loss was $8.9 million, down from $4.8 million loss in FY25.

• Net loss after tax was $15.7 million, impacted by a non-cash derecognition of $4.1 million in deferred tax assets.

• Operating cash inflow was $4.5 million, with significant reductions in receivables and contract assets.

Outlook and guidance

• Entering FY27 with a $47 million project pipeline in final tender or award stages and an additional $20 million in advanced procurement.

• U.S. federal and state funding is returning, with new frameworks and funding streams supporting irrigation efficiency and conservation projects.

• Corporate and hyperscaler engagement is expected to drive further growth, with a focus on converting pipeline opportunities into revenue and cash.

• No capital raise is anticipated in the foreseeable future due to ample cash and debt headroom.

• Project award timing remains uncertain, but recent momentum supports confidence in ongoing demand and growth.