Gentrack’s Bold Growth Bet: No Dividend as It Invests Heavily in Cloud and Airports

Strong Financial Momentum

Gentrack Group Limited has delivered a solid financial performance for the year ended 30 September 2025, with total revenues climbing 8% to NZ$230.2 million. The company’s recurring revenue, a key indicator of business stability, rose 13% to NZ$155.4 million, underscoring the strength of its subscription and support services model.

Profitability also saw a marked improvement, with EBITDA increasing 18% to NZ$27.8 million despite the full expensing of research and development costs, including investments in the new g2.0 cloud platform. Statutory net profit after tax more than doubled, surging 119% to NZ$20.9 million, reflecting operational leverage and favourable foreign exchange impacts.

Utilities Business – Cloud Platform Milestone and Market Expansion

The Utilities segment, which accounts for the majority of group revenue, grew 7% to NZ$193.4 million. Recurring revenues increased 12%, driven by contract renewals, upgrades, and new customer wins. A landmark achievement was the first full-scope deployment of Gentrack’s g2.0 cloud-based platform with Genesis Energy in New Zealand, integrating Salesforce CRM technology. This rollout represents a significant step in modernising utility billing and customer management systems.

Further expansion is underway with the upcoming go-live of ACEN in the Philippines, marking Gentrack’s entry into Asia with a full end-to-end g2.0 stack. Additionally, the company secured its first g2.0 water customer in the UK, Pennon Water Services, highlighting its unique capability to serve both energy and water sectors.

Veovo Airports Division – Accelerated Growth and Strategic Contracts

Veovo, Gentrack’s airports division operating in over 150 airports across 25 countries, posted a 15% revenue increase to NZ$36.8 million. Recurring revenue grew 18%, supported by new customer wins in the UK, Middle East, and Asia-Pacific, alongside upgrades to its Gen8 platform. The division delivered more projects than ever, including deployments at Manchester Airport Group and Edinburgh Airport.

A standout contract was signed with NAV CANADA, the world’s second-largest air navigation service provider, to manage aeronautical billing. This long-term agreement not only reinforces Veovo’s market leadership but also opens a new global market segment with significant growth potential.

Balance Sheet Strength and Capital Allocation

Gentrack’s cash position strengthened by NZ$18.1 million to NZ$84.8 million, reflecting strong cash flow generation. The Board has decided against paying a dividend for FY25, opting instead to reinvest capital into growth initiatives, including product development and sales expansion. This disciplined approach aims to sustain momentum in high-growth sectors.

The company also highlighted its resilience to macroeconomic uncertainties and sees AI adoption as a positive catalyst for operational efficiency and customer innovation. Currency movements, particularly the weaker New Zealand and Australian dollars, have been beneficial given Gentrack’s global footprint.

Looking Ahead

With utilities and airports undergoing rapid digital transformation, Gentrack is well positioned to lead global modernization efforts. The successful deployment of g2.0 and the expansion of Veovo’s footprint signal a promising growth trajectory. Investors will be watching closely how the company leverages these platforms and navigates evolving market dynamics in FY26 and beyond.