Etherstack Lands $1m WA Iron Ore Deal, Boosting Long-Term Recurring Revenue
Etherstack has landed a $1 million contract to supply digital radio network equipment to the world’s largest iron ore producer in Western Australia, reinforcing its growth in recurring revenues. The company also reports record cash receipts in the first half of 2025, signaling strong momentum.
- New $1 million contract with WA iron ore giant via Radlink Communications
- Majority of deployment revenue recognized in H1 2025, support revenue over 12 months from H2
- Contracts contribute to long-term recurring revenues spanning 10-15 years
- Record H1 cash receipts reported, with positive outlook for Defence and 3GPP MCPTX divisions
- Recurring support revenues remain a key performance indicator for Etherstack
Contract Win in Western Australia
Etherstack plc, a specialist in mission-critical wireless communications technology, has secured a $1 million contract to supply digital radio network equipment to the world’s largest iron ore producer operating in Western Australia. This deal, facilitated through Radlink Communications, a long-standing systems integrator partner, builds on Etherstack’s expanding footprint in the resource sector, particularly following a recent deployment to an eighth mine site earlier this year.
Revenue Recognition and Support Services
The contract includes hardware and software delivery, with the bulk of deployment revenue expected to be recognized in the first half of 2025. Support services revenue, which is critical for long-term income stability, will be recognized over the following 12 months starting in the second half. These support contracts typically extend over 10 to 15 years, underpinning Etherstack’s strategy to grow its recurring revenue base.
Recurring Revenue as a Growth Driver
Etherstack’s recurring revenues, derived from support contracts with public safety agencies and major utilities across multiple countries, continue to be a vital performance metric. The latest contract adds to this steady income stream, reinforcing the company’s financial resilience and growth prospects. The company’s Australian-manufactured APCO P25 digital radio equipment remains a key product in these deployments.
Strong First Half Performance and Outlook
In a recent trading update, Etherstack reported record cash receipts for the first half of the financial year, reflecting robust demand and execution. Management remains optimistic about securing further contracts, particularly from its Defence division and the emerging 3GPP MCPTX segment, which focuses on next-generation mission-critical push-to-talk technologies.
Global Reach and Innovation
With research and development facilities spanning London, Sydney, New York, and Yokohama, Etherstack continues to innovate in wireless communications technology. Its solutions are deployed in some of the most demanding environments worldwide, from public safety to resource extraction, underscoring the company’s strategic positioning in critical infrastructure communications.
Bottom Line?
Etherstack’s latest contract and strong H1 results set the stage for sustained growth, but investors will watch closely for new deals in Defence and emerging tech divisions.
Questions in the middle?
- How will the new contract impact full-year revenue and profitability?
- What is the pipeline visibility for Defence and 3GPP MCPTX contracts in the near term?
- How might global supply chain or geopolitical factors affect Etherstack’s deployment timelines?
