EGL Accelerates Growth with 13.9% Revenue Rise and PFAS Tech Breakthrough
The Environmental Group Limited (EGL) reported a robust FY25 with revenue climbing 13.9% to $111.9 million and underlying EBITDA up 9.9%, driven by strategic acquisitions and advances in PFAS technology. The company projects further EBITDA growth of 15-20% in FY26, underpinned by expanding recurring revenue streams.
- FY25 revenue up 13.9% to $111.9 million
- Underlying EBITDA increased 9.9% to $11.1 million
- 53% of revenue now recurring, boosted by maintenance and service contracts
- Acquisition of Advanced Boilers & Combustion expands industrial boiler offerings
- Significant PFAS technology milestones including EPA approval and US patent
Strong Financial Momentum
The Environmental Group Limited (EGL) has delivered a solid FY25 financial performance, with revenue rising 13.9% year-on-year to $111.9 million and underlying EBITDA growing by 9.9% to $11.1 million. This growth was fuelled by sustained demand for gas turbine silencers, strategic acquisitions, and successful tender wins, particularly in the emerging PFAS extraction technology space.
Underlying EBIT also increased by 7.8%, while net profit after tax rose 7.3%, reflecting operational efficiencies and expanding margins. Notably, recurring revenue now accounts for 53% of total revenue, highlighting EGL’s shift towards more stable, service-based income streams.
Strategic Acquisition Bolsters Energy Segment
In April 2025, EGL acquired Advanced Boilers & Combustion for $5.5 million, a move that significantly broadens its footprint in the industrial boiler market. Advanced Boilers brings exclusive rights to Maxitherm boiler technology and complementary fabrication capabilities, enhancing EGL’s product offering and service capacity. This acquisition contributed to a 41.6% revenue increase in the EGL Energy segment, with EBITDA margins improving slightly despite some one-off cost overruns.
PFAS Technology, A Key Growth Driver
EGL Waste achieved several milestones in PFAS (per- and polyfluoroalkyl substances) treatment technology, including EPA approval for Reclaim Waste’s Laverton liquid waste facility and a new patent granted in the United States. These regulatory endorsements pave the way for recurring service revenue from PFAS treatment plants, expected to commence in FY26. The company also secured a new design and construction order for a novel PFAS treatment plant, reinforcing its leadership in this niche but critical environmental technology sector.
Segment Performance and Market Conditions
While EGL Baltec experienced a slight decline in EBITDA due to margin mix and fixed-price project impacts, demand for gas-generated peaking power remains strong, supported by growth in data center power needs and renewable energy integration. EGL Clean Air faced challenges linked to the lithium market downturn but showed signs of recovery in the second half of FY25, driven by increased demand for dust extraction systems.
Outlook and Growth Strategy
Looking ahead, EGL forecasts normalised EBITDA growth of 15-20% for FY26, continuing its track record of meeting guidance and delivering sustainable growth. The company plans to reinvest cash flow into expanding recurring revenue streams and improving margins, leveraging both organic growth and targeted acquisitions. With a growing pipeline of projects and regulatory approvals supporting its PFAS technology, EGL is well-positioned to capitalize on evolving environmental and energy market demands.
Bottom Line?
EGL’s FY25 results set a strong foundation, but the real test will be sustaining momentum as PFAS technology moves from innovation to recurring revenue.
Questions in the middle?
- How will EGL manage integration risks and margin pressures from recent acquisitions?
- What is the potential scale and timing of recurring revenue from PFAS treatment plants?
- Can EGL offset challenges in the lithium-related Clean Air segment with growth in other areas?
