Energy One Limited (ASX – EOL) delivered a robust FY25 performance, posting 17% revenue growth to $61.4 million alongside a 74% surge in net profit, underpinned by strong market expansion and strategic investments in cybersecurity and product innovation.
- Revenue up 17% to $61.4 million
- Net profit after tax rises 74% to $5.9 million
- Annual recurring revenue (ARR) grows 22% to $60.4 million
- Significant investment in cybersecurity with ISO 27001 certification targeted for 2025
- Strong pipeline and order book support 15-20% revenue growth guidance for FY26
Robust Financial Growth Amid Global Energy Transition
Energy One Limited (ASX – EOL), a global supplier of wholesale energy trading software and services, has reported a strong set of full-year results for FY25, reflecting its growing footprint in the energy technology sector. The company posted revenue of $61.4 million, marking a 17% increase year-on-year, while net profit after tax surged 74% to $5.9 million. This performance underscores Energy One’s successful strategy of scaling operations and deepening market penetration across Australia and Europe.
Annual recurring revenue (ARR), a key metric for subscription-based software businesses, rose 22% to $60.4 million, signaling solid customer retention and expansion. The company now supports over 2,000 users across 30 countries, with more than 360 customers and 449 software installations worldwide.
Strategic Investments Fueling Innovation and Security
Energy One has committed significant resources to product development and cybersecurity, investing over $1 million in the past year towards achieving ISO 27001 certification, a globally recognised standard for information security management. This move is particularly pertinent given the critical nature of energy trading data and the increasing cyber risks in the sector.
Half of the company’s salary expenditure is aligned with IT and product development, reflecting a clear focus on innovation. The company also launched a professional training and development scheme, enhancing employee skills and engagement, which contributed to a higher employee net promoter score (eNPS).
Geographic Expansion and Market Leadership
Energy One’s growth was driven by strong performances in both its Australian and European markets. Australian revenue grew 13% to $26.4 million, supported by new Tier 1 and Tier 2 client wins and the launch of a Trading Portal that enables customers to self-serve market and trading data. Meanwhile, the Europe/UK segment saw a 20% revenue increase to $34.9 million, bolstered by successful cross-selling initiatives and a growing customer base, including 30 net new installs.
The company’s European operations have been restructured for better integration and customer service, with a new larger office secured in Paris. Energy One now holds an estimated 15% market share in Europe’s energy trading software space, a market ten times the size of Australia’s.
Financial Discipline and Strong Balance Sheet
Energy One’s financial discipline is evident in its improved margins and cash flow generation. Cash EBITDA increased 57% to $10.5 million, with cash margins expanding steadily. The company reduced net debt by $7.5 million over the year, bringing leverage down to 0.6 times cash EBITDA, a significant improvement from 2.1 times in the prior year.
This deleveraging strengthens the balance sheet, positioning Energy One to support ongoing investment and potential acquisitions. The company is actively exploring disciplined M&A opportunities, particularly in the United States, to extend its global footprint and product capabilities.
Outlook – Confident Growth and Strategic Focus
Looking ahead, Energy One enters FY26 with a strong pipeline and order book, including $4 million of ARR signed or in contract, implying a 7% ARR growth at the start of the new financial year. The company targets 15-20% revenue growth and continued margin expansion, driven by organic growth and strategic acquisitions.
Energy One’s leadership emphasizes its role in powering the global energy transition, providing mission-critical software solutions that help customers manage risk and volatility in increasingly renewable-driven markets. The anticipated ISO 27001 certification will further differentiate the company in a data-sensitive industry.
Bottom Line?
Energy One’s FY25 results set a solid foundation for accelerated growth, but the market will watch closely as it pursues cybersecurity certification and expansion into the US.
Questions in the middle?
- How will Energy One’s ISO 27001 certification impact customer acquisition and retention?
- What are the timelines and targets for potential acquisitions in the US market?
- Can Energy One sustain its margin expansion amid increased investment and scaling?