DUG Technology Posts 42% Order Book Growth Despite 4% Revenue Dip
DUG Technology reports a landmark US$52 million services order book for FY25 despite a net loss, driven by new imaging tech and mobile data centre launches.
- Services order book surges 42% to US$52 million
- Revenue dips 4% to US$62.6 million with mixed segment performance
- EBITDA falls 7% to US$15.4 million, 25% margin maintained
- Net loss after tax of US$4.4 million contrasts prior year profit
- Launch of Elastic Multi-Parameter FWI imaging and DUG Nomad mobile data centre
Strong Order Book Sets a New Benchmark
DUG Technology Ltd has unveiled its FY25 financial results, revealing a record services order book of US$52.0 million as of 30 June 2025. This represents a robust 42% increase over the previous year and a 58% rise since December 2024, underscoring strong demand for its geoscience computing services. The surge was primarily driven by US$45.7 million in service project awards secured in the second half of FY25, highlighting the company’s growing footprint in key emerging markets such as the Middle East and Brazil.
Revenue and Profitability – A Mixed Picture
Despite the impressive order book, DUG’s total revenue from customers declined by 4% to US$62.6 million. Services revenue fell 5%, while software revenue bucked the trend, rising 13% to US$8.3 million. However, revenue from high-performance computing as a service (HPCaaS) dropped sharply by 29%, reflecting shifting dynamics within the company’s business segments. EBITDA decreased by 7% to US$15.4 million, maintaining a solid 25% margin, with the second half of FY25 delivering a stronger 30% margin and US$10.2 million EBITDA.
Net Loss Amid Strategic Investments
Contrasting with the EBITDA profitability, DUG reported a net loss after tax of US$4.4 million, a notable reversal from the US$3.3 million profit recorded in FY24. This loss is attributed to increased depreciation, amortisation, and finance expenses, likely linked to recent capital investments and lease liabilities. Nevertheless, the company’s cash position improved significantly, rising 74% to US$16.4 million, bolstered by a successful A$31.4 million capital raising in October 2024.
Innovation Driving Future Growth
FY25 was marked by key technological milestones, including the August 2024 release of the Elastic Multi-Parameter Full Waveform Inversion (eMP-FWI) imaging technology. This innovation promises to revolutionise seismic data processing, potentially reshaping industry standards. Additionally, the first commercial deployment of DUG Nomad, a mobile data-centre solution, was achieved through a lease agreement, signaling progress in one of the company’s strategic growth areas.
Outlook – Confidence Amid Transition
Management expressed strong confidence entering FY26, citing the highest-ever order book and momentum in software and new regional markets as foundations for growth. The combination of technological innovation and expanding geographic reach positions DUG to capitalise on evolving industry demands, although the path to returning to net profitability will be closely watched by investors.
Bottom Line?
DUG’s record order book and tech breakthroughs set the stage, but profitability challenges remain in focus.
Questions in the middle?
- How will DUG translate its record order book into sustained revenue growth?
- What impact will the new eMP-FWI imaging technology have on customer acquisition and retention?
- Can the DUG Nomad mobile data centre scale commercially to offset HPCaaS revenue declines?
