WasteCo Group (WCO) H1 2025 earnings summary

Executive summary

• Revenue increased 20% year-over-year to NZ$25.0m for the six months ended 30 September 2024.

• Operating EBITDA reached NZ$1.8m before restructuring, acquisition, and due diligence costs.

• Net loss widened to NZ$5.5m, impacted by one-off restructuring and acquisition costs.

• Recent acquisitions, including Bond Contracts, Cleanways Group, Central Suction Cleaners Nelson, and Civic Waste Limited, contributed positively to EBITDA.

• Leadership transition with new CEO David Peterson and new COO and Chief of Sales appointments.

Financial highlights

• Revenue: NZ$25.0m (up from NZ$20.8m year-over-year).

• Operating EBITDA: NZ$1.8m before exceptional costs.

• Net loss: NZ$5.5m (vs. NZ$2.0m or NZ$3.1m loss year-over-year).

• Basic and diluted loss per share: NZ$0.0065 (vs. NZ$0.0027 year-over-year).

• Cash at bank: NZ$0.37m (down from NZ$1.75m at 31 March 2024).

Outlook and guidance

• Civic Waste acquisition expected to add NZ$20m in revenue in the 12 months post-acquisition.

• Improved asset utilisation and asset sell-downs forecast to increase profitability in H2 FY25.

• Directors expect adequate resources to continue operations, supported by capital raise and acquisition.

• Share purchase plan targeting up to NZ$5m in new equity to strengthen financial position.

• Positive outlook on construction sector activity due to recent reduction in official cash rate.