Smart Parking’s Rapid Expansion Raises Questions on Regulatory and Integration Risks
Smart Parking Limited delivered record FY25 results, driven by strong organic growth and the strategic acquisition of Peak Parking in the USA, setting the stage for ambitious global expansion.
- Revenue up 42% to $77.2 million
- Adjusted EBITDA increased 47% to $20.5 million
- EPS rose 37% to 1.45 cents per share
- 1,938 total sites under management, including 139 in the USA
- Strong balance sheet with $12.7 million cash and $10 million USD credit facility
Record Financial Performance
Smart Parking Limited (ASX, SPZ) has reported a standout FY25, posting a 42% increase in revenue to $77.2 million and a 47% rise in adjusted EBITDA to $20.5 million. Earnings per share climbed 37% to 1.45 cents, reflecting both organic growth and the successful integration of its recent US acquisition, Peak Parking LLC. The company’s adjusted EBITDA margin improved to 26.6%, underscoring enhanced operational efficiency.
Expanding Global Footprint
At the end of FY25, Smart Parking managed 1,938 sites worldwide, including 1,799 ANPR (Automatic Number Plate Recognition) sites and 139 in the United States. The acquisition of Peak Parking, based in Texas, has been a significant growth driver, delivering accretion exceeding 25% on a proforma basis and expanding the company’s presence into seven US states. This move positions Smart Parking to tap into the largest parking operations market globally.
Strong Organic Growth and Market Diversification
Organic growth remains robust, with a 26% increase in ANPR sites under management and 437 new site additions across the UK, New Zealand, Denmark, and Germany; a 45% increase on the prior corresponding period. New Zealand and Germany markets showed particularly strong revenue growth of 62% and 43%, respectively. The company is also establishing a foothold in Switzerland, signaling continued geographic diversification.
Technology Leadership and Innovation
Smart Parking’s proprietary SmartCloud platform and AI-driven Smart Vision technology continue to provide a competitive edge. These innovations improve vehicle number plate recognition accuracy and reduce hardware costs, enhancing return on investment for new sites. The company is also developing a new payment app to complement its compliance offerings, aiming to deliver a seamless, ticketless parking experience.
Financial Strength and Growth Outlook
With $12.7 million in cash (excluding client funds) and a $10 million USD revolving credit facility, Smart Parking is well-capitalized to fund ongoing organic growth and strategic acquisitions. The company remains debt-free following recent repayments. Looking ahead, Smart Parking targets 3,000 ANPR sites under management by December 2028, supported by continued sales momentum, technology rollouts, and integration of Peak Parking’s full-year contribution in FY26. Margin expansion is anticipated as technology implementations mature in North America.
Bottom Line?
Smart Parking’s FY25 results underscore its successful global expansion and technology-driven growth, setting a strong foundation for ambitious targets through 2028.
Questions in the middle?
- How will regulatory changes in Denmark impact Smart Parking’s growth and compliance costs?
- What is the pipeline and timeline for further acquisitions to complement organic growth?
- How quickly will the new payment app rollout influence customer adoption and revenue?
