Energy Action Posts 12% Revenue Growth and $2 Million Profit in FY25
Energy Action Limited reported a robust FY25 with a 12% revenue increase and a 247% jump in statutory profit, underpinned by disciplined expense management and contract growth.
- Revenue rises 12% to $12.79 million
- Statutory profit after tax surges 247% to $2.03 million
- EBITDA grows 69% to $3.04 million
- Contract assets increase 19.33%, reflecting business expansion
- Loan facilities restructured with extended terms and reduced finance costs
Strong Financial Performance
Energy Action Limited has reported a significant uplift in its financial results for the year ended 30 June 2025. The company’s revenue climbed 12% to $12.79 million, driven by growth in both energy procurement and energy management services. Most notably, statutory profit after tax soared by 247% to $2.03 million, reflecting improved operational efficiencies and a favourable revenue mix.
EBITDA also saw a substantial increase of 69%, reaching $3.04 million, highlighting the company’s enhanced earnings quality and cost discipline. Basic earnings per share rose sharply to 5.2 cents, up from 1.9 cents the previous year, signaling stronger returns for shareholders.
Operational Highlights and Cost Management
The company’s energy management revenue grew by over 22%, including the recognition of $0.7 million in deferred revenues, indicating successful contract fulfilment and revenue recognition strategies. Meanwhile, total expenditure was marginally reduced by 0.8%, despite increased labour costs and amortisation expenses. Savings were achieved across channel partner rebates, computer maintenance, legal fees, finance costs, and lease-related expenses, underscoring effective discretionary spend controls.
Energy Action also reassessed the useful life of its intangible assets, leading to higher amortisation charges but reflecting a prudent approach to asset management and accounting estimates.
Balance Sheet and Capital Structure
Contract assets increased by 19.33% to $7.49 million, signaling expanding business activity and a healthy pipeline of billable work. The company successfully restructured its borrowings, replacing a fixed term loan with a revolver facility extended to April 2028 and introducing a new fixed term loan with staggered repayments. These changes reduced finance costs and improved liquidity management.
Energy Action also exited its Parramatta leasehold in June 2025 and commenced a new five-year lease in Sydney, reflecting strategic real estate decisions aligned with operational needs.
Outlook and Governance
The company’s audit is underway with results expected in September 2025, anticipated to confirm these preliminary figures. No dividends were declared, indicating a focus on reinvestment and balance sheet strengthening. The board continues to monitor financial risk and liquidity closely, with new loan covenants commencing in September 2025 to ensure ongoing compliance.
Energy Action’s performance this year positions it well for future growth, though investors will be watching how the company manages its contract assets and loan covenants in the coming periods.
Bottom Line?
Energy Action’s strong FY25 results set a solid foundation, but upcoming loan covenants and contract asset quality will be key to watch.
Questions in the middle?
- How will Energy Action manage the new financial covenants starting September 2025?
- What is the quality and collectability outlook for the increased contract assets?
- Will the company consider initiating dividends as profitability strengthens?