Rubicon Water’s $7M Net Loss Highlights Profitability Challenge Despite Growth

Robust Revenue Growth Amid Global Water Challenges

Rubicon Water Limited has delivered its highest revenue result since listing on the ASX in 2021, reporting $69.1 million for the 2025 financial year, an 18.3% increase from the previous year. This growth was largely driven by a 42% surge in the Rest of World segment, notably in the United States and Europe, where demand for advanced irrigation automation solutions continues to accelerate amid mounting water scarcity and agricultural pressures.

Despite this revenue milestone, the company recorded a net loss after tax of $7 million, an improvement from the $11 million loss in FY24. The narrowing loss reflects operational efficiencies and stronger cash flow management, with the Group generating a positive operating cash inflow of $5.4 million and reducing net debt by nearly 55% to $14.3 million.

Strategic Contracts and Market Expansion

Rubicon’s operational highlights include securing a landmark $2.8 million pilot contract with the Turlock Irrigation District in California, introducing autonomous control technology that builds on decades of irrigation modernization experience. In Europe, the company is advancing a $6 million open-channel automation project in Italy’s Agropontino region, targeting significant water and energy savings across 25,000 acres.

In India, momentum continues with the Narayanpur Left Bank Canal Phase II automation project, which has garnered federal commendation and interest from neighboring states. Meanwhile, a comprehensive strategic review of the China operations culminated in a new joint venture with TUS Water Internet Co. Ltd. and Guoxin Runze Investment Co. Ltd., positioning Rubicon to better capture growth opportunities in this critical market despite a $2.6 million impairment related to the previous partnership structure.

Technology Leadership and Workforce Growth

Rubicon’s FarmConnect technology, which automates surface irrigation with precision and efficiency, is gaining traction particularly in the western US, where water availability and labor costs are driving adoption. Independent studies have demonstrated water savings exceeding 37% and crop yield increases of 25%, underscoring the practical benefits of advanced surface irrigation.

The company’s global footprint now spans 22 countries, supported by a 31% increase in international employees over five years. This investment in localised teams with engineering and commercial expertise is critical to delivering complex projects and sustaining growth.

Governance and Capital Management

Leadership changes included the appointment of Tony Morganti as Chair in April 2025, succeeding Gordon Dickinson who remains Deputy Chair. The Board continues to emphasize strong risk management, including supply chain resilience, counterparty risk, and intellectual property protection. Capital raising efforts in FY25 generated $17 million, with proceeds used to reduce debt and strengthen working capital.

Rubicon did not declare dividends for FY25, reflecting its focus on reinvestment and growth. The company’s financial position remains solid, with net assets increasing to $64 million and a gearing ratio improved to 22%.