Energy One Surges 309% Profit, Eyes US Expansion with First Dividend in Two Years
Energy One Limited reported a robust 17% revenue increase and a 309% jump in net profit for FY25, declaring its first dividend since FY23 and signaling ambitions to expand into the US market through acquisitions.
- Revenue rises 17% to $61.4 million
- Net profit after tax surges 309% to $5.9 million
- Annual Recurring Revenue grows 22%, with 90% recurring revenue
- First fully franked dividend declared since FY23 at 7.5 cents per share
- Plans to explore acquisitions in the US to complement organic growth
Strong Organic Growth and Profitability
Energy One Limited has delivered a standout performance for the financial year ended 30 June 2025, posting a 17% increase in revenue to $61.4 million and a remarkable 309% rise in net profit after tax to $5.9 million. This surge reflects the company's successful execution of its organic growth strategy, with no inorganic revenue contributions for the past three years.
Underlying operational metrics also improved significantly. Annual Recurring Revenue (ARR) climbed 22% to $60.4 million, underscoring the stability of Energy One's business model, with approximately 90% of revenue recurring annually. EBITDA margins expanded to 26%, while cash-EBITDA margins rose to 18%, highlighting enhanced operational leverage and cost control.
Dividend Declaration and Balance Sheet Strength
In a notable development, Energy One declared a fully franked final dividend of 7.5 cents per share, payable in October 2025. This marks the first dividend payment since FY23, signaling confidence in the company's cash flow generation and financial position. The company also reduced its net debt by 53% to $6.7 million, supported by strong cash-EBITDA of $10.5 million for the year.
Operational Enhancements and Innovation Focus
The CEO's commentary highlighted several operational improvements, including the establishment of global functional teams and geographic sales structures, which have driven productivity gains. Revenue per employee increased 13% year-on-year, reflecting better workforce efficiency and automation. Energy One continues to invest heavily in innovation, allocating $5.6 million (around 9% of revenue) to new product features and modules, with a growing emphasis on artificial intelligence and cybersecurity, targeting ISO 27001 certification.
Strategic Outlook and Expansion Plans
Looking ahead, Energy One remains committed to supporting the global energy transition, particularly in renewables and storage technologies. The company reported a strong sales pipeline, with signed order books and contracting opportunities implying a 9% revenue growth start to FY26. While organic growth remains the priority, Energy One announced plans to explore strategic acquisitions in the United States, aiming to establish a presence in one of the world's largest energy markets. This move complements their existing footprint in Australia and Europe and aligns with their ambition to become a global powerhouse.
CEO succession is underway, with current CEO Shaun Ankers providing an extended notice period and intending to remain on the board post-transition to assist with growth initiatives and potential mergers and acquisitions.
Bottom Line?
Energy One’s strong organic momentum and strategic US acquisition plans set the stage for an ambitious next chapter in its global energy software journey.
Questions in the middle?
- Which US acquisition targets align best with Energy One’s growth and cultural criteria?
- How will the CEO succession impact the company’s strategic execution and innovation pipeline?
- Can Energy One sustain margin expansion while investing heavily in R&D and global expansion?
