SciDevL (SDV) H1 2025 earnings summary

Executive summary

• Focused on innovative water solutions, recycling, and environmental impact, operating through Specialty Chemistry and Water Technologies segments with a global footprint and strong PFAS remediation focus.

• Diversified revenue streams across geographies and end markets, reducing exposure to any single segment.

• Growth driven by proprietary technology, regulatory tailwinds, and expansion in heavy industries and government sectors.

• Revenue for 1H FY25 was $49.9m, slightly down from $50.3m in 1H FY24, with underlying EBITDA of $3.4m, up from $3.2m.

• Expanded client base and operational footprint in both segments; no dividends declared or paid.

Financial highlights

• 1H FY25 revenue was $49.9m, flat year-over-year, with gross margin at 29% and EBITDA of $3.4m.

• Cash and cash equivalents at 31 Dec 2024 were $10.9m, supported by a working capital facility.

• Profit before income tax was $955k, with a net loss after tax of $68k.

• Cash receipts for the half were $51.0m; operating cash flow for FY24 was $8.8m.

• Market capitalization as of December 2024 was A$110.1m, with 189.9m shares on issue.

Outlook and guidance

• Confident in continued organic top-line growth and profitability improvements, supported by a strong balance sheet and $10m finance facility.

• Expecting revenue uplift in the second half, especially in water technologies and energy business as U.S. oil field activity rebounds.

• Strategic focus on expanding PFAS remediation, leveraging proprietary FluorofIX technology and exploring inorganic growth opportunities, including M&A.

• Chemical Services anticipates growth and market share expansion through new contracts and a joint venture with Nuoer Chemicals.

• Water Technologies expects strong demand for PFAS treatment solutions, driven by impending regulations in Europe and North America.