Energy Action Accelerates Growth with 27% Revenue Surge and AI Investment
Energy Action Ltd reports a robust Q4 FY25 with significant revenue growth, sustained positive cash flow, and strategic refinancing, while advancing its AI-driven Utilibox platform and zero-carbon solutions.
- 27.37% revenue increase year-on-year in Q4 FY25
- Fourth consecutive quarter of positive operating cash flow
- Refinanced borrowings with Commonwealth Bank to lower funding costs
- Invested $0.15 million in AI-enabled Utilibox platform development
- Expanded zero-carbon offerings with first battery procurement for a client
Strong Revenue Growth and Cash Flow Momentum
Energy Action Limited (ASX, EAX) has delivered a compelling performance in the fourth quarter of fiscal year 2025, posting a 27.37% increase in revenue compared to the prior corresponding period. This growth underscores the company’s strengthening position in the Australian energy services market, driven by core offerings such as energy procurement, carbon emissions reporting, and solar PV and battery procurement.
Notably, Energy Action has achieved positive operating cash flow for the fourth consecutive quarter, recording a net inflow of $0.31 million in Q4 alone and a full-year total of $1.78 million. This consistent cash generation reflects effective operational management and growing customer engagement.
Strategic Refinancing and Debt Management
The company successfully consolidated its borrowings with the Commonwealth Bank of Australia, securing a lower cost of funding. A $1.45 million term loan was drawn to repay related party director loans and accrued interest, while the revolving credit facility was partially drawn and actively managed to reduce interest expenses. This refinancing effort has removed previous cash covenants, allowing Energy Action to maintain a leaner cash balance and deploy surplus funds to reduce debt.
Investment in Innovation and Zero-Carbon Solutions
Energy Action continues to invest strategically in its AI-enabled Utilibox platform, allocating $0.15 million in capitalised development expenditure during the quarter. This platform is central to the company’s long-term growth strategy in emissions and energy management technology, enhancing service delivery and client value.
Additionally, the company marked a milestone by supporting the procurement of its first battery for a client, signaling a meaningful expansion into zero-carbon energy solutions. This move aligns with broader market trends towards sustainability and positions Energy Action to capture emerging opportunities in clean energy.
Operational and Market Positioning
Energy Action’s CEO, Derek Myers, highlighted the company’s momentum, citing strong new client acquisition and high contract renewal rates as evidence of the value clients place on its services. The recent relocation to new premises in Sydney’s CBD also reflects a strategic step to support growth and operational efficiency.
Looking ahead, the company’s improved sales performance is expected to translate into stronger and more predictable cash flows, as revenues are collected in arrears over contract durations. This financial stability will be critical as Energy Action continues to invest in technology and expand its market footprint.
Bottom Line?
Energy Action’s blend of revenue growth, refinancing, and innovation investment sets the stage for sustained momentum in the evolving energy services sector.
Questions in the middle?
- How will Energy Action’s AI-enabled Utilibox platform impact future revenue streams?
- What are the company’s plans for scaling its zero-carbon battery procurement services?
- Can the positive cash flow trend continue amid ongoing investments and market competition?
