X2M’s $5.5M Contract Surge Signals Rising Market Risks and Opportunities
X2M Connect Limited has secured over $5.5 million in new South Korean contracts for remote water metering, signaling strong momentum heading into FY26. The company’s expanding customer base and addressable market highlight its growing influence in the Asia-Pacific IoT sector.
- New South Korean water metering contracts worth approximately $1 million
- Total Q4 FY25 South Korea contracts exceed $5.5 million
- Enterprise and government customers increase to 84
- Addressable market in South Korea expands by 113,000 households
- Contracts scheduled for delivery in first half of FY26
Strong Contract Wins in South Korea
Australian IoT specialist X2M Connect Limited (ASX, X2M) has announced a significant boost to its South Korean operations, securing new remote water metering contracts valued at approximately A$1 million. These latest wins contribute to a total of more than A$5.5 million in contracts secured during the fourth quarter of FY25, all scheduled for delivery in the first half of FY26.
The contracts cover municipalities including the cities of Yongin and Gimcheon, as well as the county of Gapyeong, collectively servicing 7,806 households. Notably, Yongin and Gapyeong represent new customers for X2M, expanding its enterprise and government customer base to 84 and increasing its addressable market by an additional 113,000 households.
Market Recovery and Growth Potential
After a subdued FY25, these contract awards reflect a revitalization of the South Korean market, where municipalities are now funded to resume digitization efforts for water system monitoring and control. X2M’s CEO Mohan Jesudason highlighted the company’s ability to convert a significant pipeline into revenue, underscoring the substantial opportunity within the region.
The total addressable market in South Korea now stands at an estimated A$581 million in upfront revenues and A$29 million in recurring annual revenues, based on device installations and subscription services. This positions X2M well for a strong start to FY26 and lays a solid foundation for continued growth in the region.
Strategic Focus and Global Expansion
X2M’s technology enables remote monitoring and control of utility meters and sensors, providing real-time data and device management through its proprietary IoT platform. With over half a million devices connected globally, the company is focused on expanding its footprint across the Asia-Pacific utility sector, including established operations in Japan, Taiwan, China, and South Korea.
Additionally, X2M has recently extended its reach into the Middle East by licensing its platform to a Dubai-based partner, signaling ambitions for broader international growth. The company’s strategy remains centered on leveraging its proven technology in utilities while exploring adjacent markets such as artificial intelligence, renewable energy, and battery storage.
As X2M moves forward, the successful execution of these contracts and continued market penetration will be critical to sustaining its growth trajectory and delivering shareholder value.
Bottom Line?
With a strong pipeline converting into substantial contracts, X2M is poised to capitalize on South Korea’s IoT utility market rebound in FY26.
Questions in the middle?
- How will X2M manage delivery and implementation risks across its expanding South Korean contracts?
- What are the prospects for further contract wins in other Asia-Pacific markets in FY26?
- How might emerging technologies like AI integration enhance X2M’s competitive edge in utilities?
