Smart Parking’s H1 FY25: 33% CAGR and Peak Parking Deal Boost
Smart Parking Limited reports robust H1 FY25 growth driven by a strategic US acquisition and expanding global footprint, underpinned by proprietary AI technology.
- 33% compound annual revenue growth over five years
- Acquisition of Peak Parking expands US market presence
- Strong EBITDA margin expansion and profitability gains
- Growth in parking breach notices across multiple regions
- Targeting 3,000 new organic sites by end of 2028
A Track Record of Consistent Growth
Smart Parking Limited (ASX: SPZ) continues to demonstrate a compelling growth trajectory, reporting a 33% compound annual growth rate (CAGR) in revenue over the past five years. The company’s H1 FY25 results highlight not only expanding revenues but also improving profitability, with EBITDA margins climbing steadily. This performance reflects Smart Parking’s successful blend of organic expansion and strategic acquisitions across key international markets.
Strategic US Market Entry Bolsters Scale
February 2025 marked a significant milestone with the acquisition of Peak Parking, a Texas-based operator that opens doors to the largest parking operations market globally. This move provides Smart Parking with access to lucrative states including Texas, Florida, Georgia, Tennessee, and Washington State. Early integration progress is promising, with customer site conversions to the company’s proprietary ANPR (automatic number plate recognition) technology already underway and new customer wins in existing and new territories such as Indiana.
Technology at the Core of Expansion
Smart Parking leverages its proprietary SmartCloud AI platform to process over 400 million images annually, enabling efficient management of parking breach notices (PBNs). In H1 FY25 alone, the company issued over 515,000 PBNs, reflecting strong enforcement activity and revenue generation. The technology’s ability to handle diverse site types, from retail and hospitality to transportation hubs, underpins Smart Parking’s competitive advantage and supports long-term customer retention with minimal churn.
Regional Momentum and Market Opportunities
Growth is broad-based across Smart Parking’s footprint. The UK, New Zealand, Germany, and Denmark all report significant increases in ANPR sites and PBN issuance, with Denmark’s operations, launched in early 2024, already showing rapid expansion. Despite a recent rebasing of average revenue per PBN in the UK due to regulatory changes, the longer-term outlook remains positive. The company is also actively exploring new territories in Scandinavia, mainland Europe, and the USA, aiming to capitalize on regulatory environments conducive to its technology-driven solutions.
Looking Ahead: Ambitious Growth Targets
Smart Parking has set a clear target to add 3,000 new organic sites under management by December 2028, signaling confidence in its growth strategy. This ambition is supported by disciplined acquisition criteria focused on strategic fit and earnings accretion, alongside continued organic growth in established markets. The company’s ability to integrate acquisitions effectively and leverage its technology platform will be critical to sustaining momentum and delivering shareholder value.
Bottom Line?
Smart Parking’s blend of technology innovation and strategic expansion positions it well for sustained growth, but market dynamics and integration execution will be key to watch.
Questions in the middle?
- How will the integration of Peak Parking impact Smart Parking’s profitability in FY26 and beyond?
- What regulatory changes could affect PBN revenue streams in key markets like the UK and USA?
- Which new territories are next on Smart Parking’s expansion roadmap, and what criteria will guide these moves?
