SciDevL (SDV) H2 2025 earnings summary

Executive summary

• FY 2025 revenue was $103 million, with underlying EBITDA of $7.1 million and operating cash flow of $2.9 million, reflecting a year of strategic investment and international expansion.

• Focused on building a diversified, globally significant portfolio in water solutions, with two main segments: chemical services and water technologies.

• Expanded operational footprint in North America, Asia-Pacific, and Europe, with significant growth in proprietary technology sales and new PFAS treatment contracts.

• Strategic priorities included market share growth, margin expansion, and pivoting to higher-margin proprietary products.

• Strengthened board and reinvested in business development to support sustained growth.

Financial highlights

• Revenue for FY 2025 was $103 million, down from $109 million in FY 2024, mainly due to a 26% contraction in water technologies revenue.

• Gross margin improved by 2 percentage points to 28%, reflecting a shift to higher-margin proprietary products.

• Underlying EBITDA was $7.1 million, 19% lower than FY 2024, due to reinvestment in growth initiatives.

• Net loss after tax was $900,000, impacted by higher tax expense and project challenges.

• Positive operating cash flow of $2.9 million, with 90% EBITDA cash conversion.

• Closing cash position was $9.7 million, with $3.5 million in debt.

Outlook and guidance

• Positioned for meaningful growth in FY 2026, leveraging a robust pipeline and backlog.

• Focus on converting delayed contracts and returning water technologies to profitability.

• Continued international expansion, especially in U.S. shale gas and European PFAS markets.

• Europe expected to achieve EBITDA break-even in FY 2026.

• Anticipates medium-term upside from rising US shale gas production despite near-term oil & gas headwinds.