Beonic’s $15.2m North African Airport Deal Fuels Q4 EBITDA Surge
Beonic Limited reported a landmark $15.2 million contract win in North Africa alongside strong Q4 FY25 EBITDA profitability and positive cash flow, signaling robust operational momentum heading into FY26.
- Landmark $15.2m contract with major North African airport
- Q4 FY25 EBITDA profitability at 31.4%, full year at 11.9%
- Recurring revenue growth and improved gross margin to 77.3%
- Positive net cash flow from operations of $1.6m despite one-off costs
- Strategic contract wins and renewals across APAC, EMEA, and USA
Strong Financial Performance Amid Strategic Expansion
Beonic Limited closed Q4 FY25 with a compelling set of results that underscore its growing footprint in the global IoT and data analytics market. The company reported EBITDA profitability of 31.4% for the quarter and 11.9% for the full fiscal year, alongside positive net cash flow from operations of $1.6 million, even after absorbing $184,000 in one-off cost-cutting expenses. These figures reflect a disciplined approach to cost management and operational efficiency that has bolstered Beonic’s financial stability.
Recurring revenue showed resilience, with a 3.7% increase quarter-on-quarter and an annualised recurring revenue (ARR) figure reported at approximately $17.1 million, despite some contraction in the UK market. Gross margins improved significantly to 77.3% for FY25, up from 68.5% in FY24, highlighting the company’s focus on profitability enhancement.
Landmark North African Contract and Global Wins
The quarter was marked by a landmark contract win with a major North African airport authority, valued at a total contract value (TCV) of $15.2 million, with Beonic’s share at $10.6 million over an initial three-year term plus an option to extend. This deal represents Beonic’s strategic entry into the North African aviation market and significantly expands its international airport portfolio.
Alongside this, Beonic secured multiple notable contract wins and renewals across key regions – expansions at Adelaide, Queenstown, Christchurch, and Wellington airports in the Asia-Pacific; partnerships with The Hajj pilgrimage in Saudi Arabia and Etisalat in the UAE; and extensions with US clients including the Detroit Lions and JFK International Terminal. These wins reinforce Beonic’s diversified global presence and its strength in delivering IoT solutions tailored to airports, retail, and large venues.
Operational Improvements and Outlook
Beonic’s management undertook a comprehensive organisational review throughout FY25, implementing cost-saving measures that contributed to improved EBITDA margins and positive cash flow. The company also capitalised $796,000 of R&D costs, reflecting ongoing investment in innovation, including the upcoming launch of an AI-based CCTV product in North America.
Looking ahead to FY26, Beonic aims to maintain gross margins above 77%, target EBITDA profitability between 15% and 20%, and sustain positive net cash flows. The company plans to focus on converting a qualified $44 million sales pipeline, enhancing product adoption, and continuing disciplined cost management to drive sustainable growth.
Navigating Challenges and Market Dynamics
Despite these positives, Beonic faced a reduction in ARR from two UK customers due to service contraction and churn, resulting in a $596,000 ARR decline. This highlights the importance of customer retention and market diversification as the company scales. Additionally, the company secured a $370,000 bank guarantee related to the North African contract, which is reflected in its balance sheet and cash flow statements.
CEO Billy Tucker emphasised the company’s commitment to strengthening shareholder engagement and delivering exceptional customer outcomes as Beonic builds momentum in new and existing markets.
Bottom Line?
Beonic’s Q4 momentum and strategic contract wins set the stage for a pivotal FY26 focused on growth and sustained profitability.
Questions in the middle?
- How will Beonic manage the ARR decline from the UK market moving forward?
- What impact will the North African contract have on Beonic’s revenue and operational capacity?
- Can Beonic successfully convert its $44 million pipeline into revenue in FY26?