Ava Risk Group Reports $31.6M Revenue, $2M EBITDA in FY2025

Trading Performance and Revenue Shortfall

Ava Risk Group Limited has released its Q4 FY2025 trading update, revealing a mixed but ultimately encouraging financial picture. The company recorded a full-year sales order intake of $29.9 million, down from $35.3 million the previous year, and expects FY2025 revenue of approximately $31.6 million. This figure falls short of the earlier guidance range of $35 million to $38 million, primarily due to the delay of several key orders into the first half of FY2026.

These delays stem from external factors including contractual finalisations on a Sydney infrastructure project, geopolitical tensions affecting an Indian pipeline protection contract, and tariff-related hold-ups on U.S.-based orders. Despite these setbacks, Ava Risk Group remains the preferred supplier for these projects, with all critical design milestones passed, suggesting a strong likelihood of order fulfilment in the near term.

Positive Earnings Turnaround and Cash Position

Notably, Ava Risk Group expects to report an EBITDA of around $2.0 million for FY2025, a significant improvement from the prior year’s loss of $0.9 million. This turnaround is supported by stabilised operating costs of approximately $18.3 million and a gross margin improvement to 64%, driven by stronger performance in the Detect segment. The company’s cash balance also improved slightly to $5.4 million at the end of June 2025, up from $5.0 million a year earlier, providing a solid financial foundation as it navigates the delayed revenue recognition.

Sector Progress and Technology Deployments

Ava Risk Group’s CEO Mal Maginnis highlighted ongoing momentum across the business, particularly in telecommunications, transportation, and aviation sectors. The company successfully installed its flagship Aura Ai-X fibre sensing technology on a Telstra subsea cable, which has performed strongly, and is in discussions with other international telecom providers. In aviation, Ava Risk secured an order for perimeter protection at an international airport in Morocco and plans paid trials at two Australian airports in H1 FY2026.

The Detect segment, which includes Aura Ai-X, accounted for $18.9 million in sales order intake, down from $23.3 million last year due to the delayed orders. Meanwhile, the Access segment saw a decline to $4.3 million, reflecting the absence of a prior year stocking order, and the Illuminate segment grew modestly by 4% to $6.7 million, driven by expansion into North America and Asia Pacific.

Outlook and Strategic Focus

Looking ahead, Ava Risk Group is focused on converting its healthy sales pipeline and backlog into revenue while maintaining gross margins between 60% and 65%. The company plans to continue investing in its technology to sustain market leadership and drive earnings growth. The delayed orders expected to close in H1 FY2026 will be critical to meeting revenue targets and validating the company’s growth trajectory.