SciDevL (SDV) H1 2026 earnings summary

Executive summary

• Revenue for 1H FY26 was AUD 47.9 million, down 4% year-over-year, with underlying EBITDA of AUD 1.1 million, impacted by disruptions in Energy Services and higher costs in international Water Technologies.

• Net loss after tax was AUD 2.1 million, compared to a profit of AUD 68,000 in the prior period, with negative operating cash flow due to one-off due diligence and restructuring costs.

• Strategic actions included broadening the customer base, shifting to a channel partner model internationally, and reducing corporate costs.

• Recurring revenue increased to 54% of total revenue, driven by long-term contracts and high CatChek sales.

• No dividends were paid or declared for the period.

Financial highlights

• Revenue for the half was AUD 47.9 million, down 4% year-over-year, with gross margin declining to 28% from 33% and underlying EBITDA at AUD 1.1 million.

• Net cash position at 31 December 2025 was AUD 4.4 million, with AUD 6 million in unutilized debt facilities.

• Underlying NPAT was a loss of AUD 1.4 million, compared to a AUD 0.1 million loss in 1H FY25.

• Cost reduction initiatives delivered AUD 700,000 in savings for the half, with AUD 1.3 million in annualized fixed cost reductions expected.

• Basic and diluted EPS were both -1.13 cents, compared to -0.04 cents in the prior period.

Outlook and guidance

• FY26 revenue guidance revised to AUD 100–110 million due to delayed xSlik sales, trial conversion delays, and a AUD 3 million negative FX impact.

• Second half EBITDA expected to exceed the prior year, driven by stronger revenues, higher margins, and cost reductions.

• FY27 pipeline visibility is strong, with new customer onboarding and recurring revenue growth anticipated.

• Water Technologies anticipates cost reductions of nearly AUD 3 million annually from transitioning international operations to a channel partner model.

• Revenue expected to build quarter-on-quarter in the second half, with a strong Q4 exit rate and positive momentum into FY27.