DUG Technology Posts $62.6M Revenue with 13% Software Growth in FY25
DUG Technology reported a record US$52 million order book and strong second-half momentum in FY25, driven by innovative seismic imaging technology and global office expansions despite a slight revenue dip.
- Record US$52 million order book, up 58% from December 2024
- FY25 revenue of US$62.6 million, down 4% year-on-year
- Software revenue grew 13%, services revenue declined 5%
- Significant investments in eMP-FWI seismic imaging and global offices
- Completed A$31.4 million capital raise for infrastructure and expansion
Strong Momentum Despite Revenue Dip
DUG Technology closed FY25 with a robust US$52 million order book, marking a 58% increase since December 2024 and setting a new company record. This surge was largely fueled by a strong second half, where US$45.7 million in service projects were awarded, underscoring growing demand for DUG’s advanced geoscience solutions. However, total revenue for the year slipped 4% to US$62.6 million, reflecting timing differences in project execution and a 5% decline in services revenue.
Innovative Technology Driving Growth
The company’s flagship Elastic Multi-Parameter Full Waveform Inversion (eMP-FWI) imaging technology was a highlight of FY25, with multiple pilot projects validating its market potential. This cutting-edge seismic imaging approach offers unparalleled subsurface clarity, helping clients reduce drilling risks and costs. The software segment, benefiting from this innovation, posted a 13% revenue increase, the strongest growth in three years, signaling a positive trajectory for recurring software licensing income.
Strategic Global Expansion
DUG’s expansion into key energy hubs, notably Abu Dhabi and Brazil, contributed significantly to the growing order book. The establishment of new offices and technical teams in these regions is already bearing fruit, positioning the company to capture a broader client base. This geographic diversification complements DUG’s existing presence in Houston, Kuala Lumpur, London, and Perth, reinforcing its global footprint in the competitive geoscience technology sector.
Capital Raising Fuels Infrastructure Upgrades
In October 2024, DUG successfully raised A$31.4 million to fund critical infrastructure projects, including data centre upgrades in Houston, expansion of the Abu Dhabi office, and development of the DUG Nomad mobile data centres. These investments aim to enhance computing capacity and operational flexibility, supporting more complex and compute-intensive projects. The company’s patented immersion cooling technology, licensed exclusively to Baltimore Aircoil Company, continues to provide a competitive edge by lowering power consumption and extending hardware lifespan.
Financial Position and Outlook
Despite posting a net loss after tax of US$4.4 million, largely due to increased depreciation and finance expenses from recent capital investments, DUG maintains a solid balance sheet with net debt of US$3.9 million. The strong order book and growing software revenues provide a foundation for optimism as the company enters FY26. Investors will be watching closely to see how the momentum from FY25’s second half translates into sustained growth and profitability.
Bottom Line?
DUG’s record order book and strategic investments set the stage for a pivotal FY26, but execution risks remain amid ongoing expansion.
Questions in the middle?
- How quickly will the new eMP-FWI imaging projects convert into recurring revenue streams?
- What impact will the global office expansions have on operational costs and profitability?
- Can DUG sustain software revenue growth while stabilizing its services segment?
