EP&T’s Rapid Site Expansion Raises Questions on Operational Scalability

Strong Revenue Momentum

EP&T Global Limited (ASX: EPX) has delivered a solid operational update for the period ending 30 April 2025, showcasing a 10% year-to-date increase in Annual Recurring Revenue (ARR) to $14.9 million. This growth reflects the company’s ongoing ability to convert Annual Contract Value (ACV) into recurring revenue efficiently, supported by a disciplined installation and commissioning process for its proprietary EDGE platform.

The ARR expansion is underpinned by a growing footprint, with site numbers rising sharply from 547 to 730. These sites span over 25 countries, highlighting EP&T’s expanding global reach in the energy efficiency software sector. The company’s focus on operational efficiency is evident as ARR per full-time equivalent (FTE) employee improved to $204,000, up from $197,000 at the end of June 2024.

Contract Wins and Market Expansion

EP&T’s Annual Contract Value, a forward-looking indicator of revenue potential, increased by 7% to $17.2 million. This growth was fueled by new and expanded contracts with prominent European and UK property groups, including a leading European asset manager and British Land plc. Notably, EP&T secured its first white-labelled solution contract with a large EU real estate advisory group, marking a strategic milestone in its service offering.

The company also reactivated over 150 sites acquired through the Coda Cloud technology acquisition, contributing approximately $0.4 million in new ACV. Additional contract wins include a publicly listed UK property group specializing in housing and mixed-use developments and ongoing expansion with Growthpoint Properties Australia Limited.

Operational and Strategic Highlights

CEO John Balassis emphasized the company’s positive trajectory, noting that the year-to-date performance surpasses the same period in 2024 by more than 25% in new revenue wins. He credited the team’s adaptability to a more efficient growth environment and highlighted the company’s strong operating cash flow, which covers three quarters of the year to date.

EP&T’s enhanced marketing efforts, including the addition of a new marketing staff member and a customer success function, have bolstered its pipeline and industry presence. Participation in tenders for global property entities has yielded fruitful results, positioning EP&T well for continued expansion.

Looking Ahead

While the company has not provided explicit forward guidance, the reduction of ACV backlog to approximately 10% of total ACV and the ongoing reactivation of sites suggest momentum heading into the final months of the fiscal year. EP&T’s EDGE platform continues to deliver measurable energy and cost efficiencies, reinforcing its value proposition in the commercial real estate sector.