AVADA Group Reports $17.6m FY25 Loss with $183m Revenue Amid Transformation
AVADA Group Limited reported a statutory net loss of $17.6 million for FY25, driven by impairments and challenging trading conditions, while completing a major business transformation aimed at future growth.
- Statutory net loss of $17.6 million including $14.8 million impairments
- Revenue declined 10.5% to $183.1 million due to severe weather and project delays
- First phase of business transformation completed with cost reductions and consolidation
- New Zealand operations restructured and rebranded amid strategic review
- Significant safety improvements with 41% reduction in recordable injuries
Challenging Year for AVADA Group
AVADA Group Limited, a leading player in traffic management services, has released its full-year results for FY25, revealing a statutory net loss of $17.6 million. This outcome was heavily influenced by impairments totaling $14.8 million, primarily related to its New Zealand and New South Wales operations. The company’s total revenue fell 10.5% to $183.1 million, reflecting a tough operating environment marked by severe weather disruptions and delays in government infrastructure projects.
Strategic Transformation and Operational Consolidation
Despite the financial setbacks, AVADA has made significant strides in reshaping its business. The first phase of a comprehensive transformation program was completed, consolidating eleven Australian businesses into a single operating platform under the AVADA Traffic brand. This streamlining effort has already delivered cost efficiencies and improved operational consistency. New senior management appointments, including a CEO and CFO in early 2025, have reinforced the company’s strategic direction.
The transformation also involved implementing a unified enterprise resource planning system, with further enhancements planned for the next financial year. These changes aim to optimize resource deployment and strengthen client relationships, positioning AVADA to better navigate the fragmented and competitive traffic management market.
New Zealand Operations Under Review
The New Zealand business faced a particularly difficult year, posting an operating loss of $11.7 million, including a $9.7 million impairment. A strategic review led to a management restructure and cost reductions, with the business rebranded as AVADA Traffic to align with Australian operations. The company is actively exploring future options for this segment, including potential sale or closure, while continuing to support ongoing improvement initiatives.
Safety and Financial Discipline
On a positive note, AVADA reported a 41% reduction in recordable injuries compared to the previous year, underscoring its commitment to safety excellence. Financially, the group reduced borrowings by $6.2 million to $35.3 million, reflecting disciplined capital management amid challenging conditions.
Outlook Amid Infrastructure Demand
Looking ahead, AVADA remains cautiously optimistic. The company points to a robust pipeline of infrastructure projects in Queensland and other core markets as a foundation for revenue growth. The ongoing transformation is expected to further enhance efficiency and service quality, helping AVADA maintain its competitive edge. However, challenges persist, particularly in New South Wales and Victoria, where market dynamics and labour support issues continue to impact project wins.
Bottom Line?
AVADA’s transformation lays groundwork for recovery, but market and operational challenges will test its resilience in FY26.
Questions in the middle?
- How will AVADA’s second phase of transformation impact profitability and market share?
- What are the potential outcomes for the New Zealand business, sale, closure, or turnaround?
- Can AVADA sustain revenue growth amid competitive pressures and labour challenges in New South Wales and Victoria?