COSOL Faces Contract Delays and Coal Sector Slowdown Amid FY25 Growth
COSOL Limited anticipates solid revenue and earnings growth for FY25 despite some contract timing setbacks, with a promising outlook for FY26 driven by data analytics and managed services expansion.
- FY25 revenue expected between $118-$121 million, up 16-19%
- Statutory EBITDA forecasted to grow 9-12% to $16.3-$16.7 million
- Growth tempered by contract timing delays, restructuring costs, and coal sector slowdown
- FY26 outlook includes high single-digit revenue growth and strong double-digit EBITDA and EPS gains
- Strategic shift towards multi-year managed services and digital transformation contracts
COSOL’s FY25 Performance and Challenges
COSOL Limited, a Brisbane-based technology-enabled asset management firm, has provided an update on its financial performance for the fiscal year ending 2025. The company expects full-year revenue to land between $118 million and $121 million, representing a healthy 16-19% increase over the previous year. This growth is underpinned by an anticipated 10% organic revenue increase, signaling steady demand for COSOL’s asset management solutions.
However, the company’s statutory EBITDA growth, forecasted at 9-12% to a range of $16.3 million to $16.7 million, falls slightly short of earlier expectations. COSOL attributes this moderation to the delayed commencement of new contracts, one-off restructuring expenses, and a slowdown in activity within the coal sector, influenced by commodity price pressures. Despite these headwinds, the underlying EBITDA is expected to show a stronger second-half growth of 12-15%, reflecting operational resilience.
Strategic Pivot to Managed Services and Digital Transformation
Looking ahead to FY26, COSOL is positioning itself for a significant inflection point. The company anticipates high single-digit revenue growth coupled with margin expansion, driven by an increasing share of higher-value data analytics and digital transformation contracts. This shift aligns with COSOL’s broader strategy to evolve long-standing advisory and project service relationships into multi-year managed services and Asset Management as a Service agreements.
Since its ASX listing in 2020, COSOL has steadily built proprietary intellectual property and made targeted acquisitions to enhance its capability in delivering comprehensive data-driven asset management solutions. This strategic evolution allows COSOL to deepen partnerships with clients by digitising asset networks and leveraging artificial intelligence to optimise operational efficiency.
Market Position and Future Prospects
The company’s focus on transitioning customers to managed services is expected to accelerate in FY26, contributing to a larger and more profitable revenue mix. This approach not only promises stronger earnings growth but also positions COSOL as a long-term partner in asset-intensive industries such as natural resources, energy, and utilities.
COSOL’s upcoming full-year results, due on 20 August 2025, will provide further clarity on how these strategic initiatives translate into financial performance. Investors will be watching closely to see how the company navigates sector-specific challenges and capitalises on emerging opportunities in data analytics and digital transformation.
Bottom Line?
COSOL’s FY25 growth sets the stage for a strategic leap in FY26, but contract timing and sector risks warrant close investor attention.
Questions in the middle?
- How will COSOL manage the timing risks associated with new contract commencements in FY26?
- What impact will the coal sector slowdown have on COSOL’s broader revenue diversification efforts?
- To what extent can COSOL accelerate margin expansion through its managed services and digital transformation contracts?
