Gentrack’s H1 Surge: Revenue Up 9.8%, NPAT Soars 35%, Eyes Global Growth

Solid Financial Performance Amid Strategic Investment

Gentrack Group Ltd, a prominent software provider for utilities and airports, unveiled its half-year results to 31 March 2025, showcasing solid growth across key financial metrics. Revenue rose by 9.8% to $112 million, underpinned by a 16.7% increase in recurring revenues to $76.4 million. This steady expansion reflects the company’s successful execution of its growth strategy, even as it invests heavily in product development and sales capabilities.

EBITDA increased by 5.1% to $13 million, a notable achievement given the company’s deliberate ramp-up in spending on its next-generation g2.0 platform and sales resources. Statutory net profit after tax (NPAT) surged 34.7% to $7.2 million, bolstered by foreign exchange gains and a significantly lower effective tax rate, which fell to 21.3% from 35.5% the previous year.

Growth Drivers: Utilities and Veovo Businesses

The Utilities segment contributed $92.8 million in revenue, up 7.2%, with recurring revenues growing strongly as prior contract wins and upgrades converted into steady income streams. Non-recurring revenues dipped 12%, reflecting the variable nature of project work, but the company remains optimistic about future project opportunities.

Veovo, Gentrack’s airport-focused business, delivered an impressive 24% revenue increase to $19.2 million. This growth was fueled by new customer wins in the UK and Middle East, alongside upgrades in the Asia-Pacific region. Both recurring and non-recurring revenues rose, with the latter boosted by hardware sales from supplier networks.

Global Expansion and Contract Wins Signal Momentum

Gentrack’s global footprint is expanding rapidly. The company secured significant contracts including a partnership with Utility Warehouse in the UK, which serves nearly two million meter points, and long-term renewals with key utilities such as Wave, Castle Water, and So Energy. In airports, Veovo achieved major milestones with go-lives in Edinburgh, Saudi Arabia, and Manchester, and won the prestigious London Gatwick Integrated Airport Control project, a first-of-its-kind initiative supporting airport 4.0 ambitions.

These wins underscore Gentrack’s leadership in digital transformation for utilities and airports, leveraging AI and cloud technologies to drive efficiency and innovation. The company is also advancing upgrades across Australasian airports, further cementing its market position.

Outlook: Confident in Growth Despite Global Uncertainties

Looking ahead, Gentrack expects FY25 revenue to reach or exceed $230 million, with an EBITDA margin above 12%. The company acknowledges macroeconomic challenges such as potential slowdowns in passenger travel and shifting net-zero commitments but remains confident that the energy transition and digital transformation trends will sustain demand.

With a strong cash balance of $70.7 million and no dividend planned as capital is reinvested, Gentrack is positioning itself for accelerated growth across Europe, the Middle East, and Asia. The board’s focus on expanding its product suite and sales reach signals a commitment to maintaining momentum in a dynamic market landscape.