Infragreen’s Strong FY25 Masks Challenges Ahead on Profitability
Infragreen Group Limited has reported a robust FY25 performance, with pro forma revenue and EBITDA significantly exceeding forecasts, supported by a successful $40 million IPO.
- Pro forma revenue up 38.4% to $93.4 million
- EBITDA rises 27.0% to $18.6 million, beating prospectus forecast
- Completed $40 million IPO in June 2025
- Strong performance across four core businesses
- FY26 outlook targets EBITDA growth to $25 million and NPAT of $6.8 million
A Year of Strong Growth and Strategic Positioning
Infragreen Group Limited (ASX – IFN), a rising player in sustainable infrastructure across Australia and New Zealand, has delivered a compelling FY25 performance. The company’s pro forma revenue climbed 38.4% to $93.4 million, while EBITDA increased by 27.0% to $18.6 million, slightly surpassing its prospectus forecast. This growth underscores Infragreen’s successful integration of sustainability principles with infrastructure operations, particularly in recycling, waste recovery, and clean energy sectors.
These results come on the back of a significant capital raise, with Infragreen completing a $40 million initial public offering (IPO) in June 2025. The IPO not only strengthened the company’s balance sheet but also positioned it well for future expansion, signaling strong investor confidence in its business model and growth strategy.
Diverse Business Units Driving Performance
Infragreen’s portfolio includes four key businesses – Pure Environmental, Minemet Recycling, Energybuild, and Merredin Energy. Each contributed to the strong FY25 results, operating across 19 sites with strategic regional footprints that present high barriers to entry. The company’s approach combines organic growth with bolt-on acquisitions, increased ownership stakes, and platform expansion, reflecting a disciplined and multifaceted growth strategy.
Notably, the company acquired a 49.99% stake in Merredin Energy Holdings Pty Ltd, expanding its clean energy capabilities. Meanwhile, the integration of new sites into Pure Environmental and enhanced metal recycling through Minemet Recycling demonstrate Infragreen’s commitment to scaling its sustainable infrastructure footprint.
Looking Ahead – Ambitious Yet Disciplined Growth
Looking forward, Infragreen projects further momentum with FY26 forecasts anticipating EBITDA growth to $25 million and net profit after tax (NPAT) of $6.8 million on a pro forma basis. Managing Director Declan Sherman emphasized the company’s dedication to operational excellence and sustainability, highlighting the importance of impactful partnerships and long-term value creation for shareholders and communities alike.
While the statutory net profit after tax remains negative due to non-recurring and financing expenses, the pro forma figures provide a clearer picture of the company’s underlying operational strength. Investors will be keen to monitor how Infragreen balances growth ambitions with financial discipline in the coming year.
Infragreen’s upcoming investor call promises to shed further light on its strategic priorities and operational outlook, offering a valuable opportunity for stakeholders to engage directly with management.
Bottom Line?
Infragreen’s FY25 results and $40 million IPO set a solid foundation, but the path to sustained profitability will be closely watched.
Questions in the middle?
- How will Infragreen manage the transition from pro forma profitability to statutory net profit growth?
- What specific bolt-on acquisitions or platform expansions are planned for FY26?
- How will rising demand for sustainable infrastructure shape Infragreen’s competitive positioning?
