Smart Parking (SPZ) H1 2025 earnings summary

Executive summary

• Announced acquisition of Peak Parking, a fast-growing U.S. parking operator, for up to $36 million, with $32 million upfront and up to $4 million earnout, funded by a fully underwritten AUD 45 million equity raise, debt facility, and scrip consideration.

• Peak Parking operates 134 sites across Texas, Georgia, Washington State, Florida, and two additional states, with $9 million revenue in 2024 and a 45% CAGR since 2022.

• The acquisition provides immediate U.S. market entry, aligns with the strategy to double AMPR sites to 3,000 by December 2028, and is expected to deliver over 25% EPS accretion in FY25.

• Peak's founder and management will remain, ensuring continuity and alignment.

• Revenue for H1 FY25 increased 20% to $32.0 million, driven by sales growth, new territories, and acquisitions.

Financial highlights

• H1 FY25 revenue up 20% year-over-year to AUD 31.9 million; adjusted EBITDA up 26% to AUD 9.5 million; margins expanded 139 bps to 29.8%.

• EPS increased 70% to AUD 0.0112 per share; free cash flow up 60% to AUD 6.4 million; NPAT of $3.9 million.

• Cash on hand at 31 December was AUD 8.5 million; all debt fully paid down by period end.

• Peak Parking delivered $3.3 million EBITDA in 2024, up from $1 million in 2022, with EBITDA margins over 35%.

• Revenue growth driven by 28% increase in sites under management; all regions except Queensland showed growth.

Outlook and guidance

• Reaffirmed target of 3,000 AMPR sites under management by December 2028, effectively doubling the business.

• Acquisition expected to deliver over 25% EPS accretion in FY25 on a pro forma basis, excluding revenue synergies.

• Focus on integrating Peak Parking and leveraging technology to drive further U.S. growth.

• Ongoing evaluation of further accretive acquisitions aligned with disciplined selection criteria.

• Strong balance sheet and undrawn debt facilities position the group for further acquisitions and new market entries.