Energy Action Reports $6.39M Revenue Up 20%, Profit Falls 36% in Half-Year
Energy Action Limited reported a 20.1% increase in revenue to $6.39 million for the half-year ended December 2025, driven by strong energy procurement growth. However, statutory profit after tax fell 35.7% to $593,881 amid rising expenses and amortisation.
- Revenue up 20.1% to $6.39 million, led by energy procurement
- Statutory profit after tax down 35.7% to $593,881
- EBITDA improved 16.8% to $1.56 million
- Increased expenses from amortisation and employee benefits
- Net debt rose to $3 million with deferred loan repayments
Revenue Growth Driven by Energy Procurement
Energy Action Limited has reported a solid 20.1% increase in total revenue to $6.39 million for the half-year ended 31 December 2025, compared to $5.32 million in the prior corresponding period. This growth was primarily fueled by a 31% rise in energy procurement revenue, reflecting renewed contracts and sustained demand for the company's broking and consulting services. Energy management and solar and battery segments also contributed, with solar and battery revenue surging by over 780%, albeit from a smaller base.
Profitability Pressured by Rising Costs
Despite the revenue uplift, Energy Action's statutory profit after tax declined sharply by 35.7% to $593,881. The company attributed this to increased operating expenses, including a significant rise in depreciation and amortisation costs linked to the proprietary Utilibox energy management platform. Employee benefits expenses also rose, driven by higher salaries, commissions, and share-based payments. These cost pressures offset gains in earnings before interest, tax, depreciation, and amortisation (EBITDA), which improved 16.8% to $1.56 million.
Balance Sheet and Cashflow Highlights
Energy Action's net debt increased to $3 million, up 19.5% from $2.51 million a year earlier, reflecting the company's ongoing investment in growth and technology. The Commonwealth Bank of Australia agreed to defer two loan repayments totaling $483,334, easing short-term liquidity pressures. Contract assets, representing revenue recognised but not yet invoiced, grew 10% to $8.24 million, underpinning future cash inflows. However, cash flow from operating activities swung to a negative $0.09 million, down from a positive $1.41 million in the prior period, partly due to timing of receipts and payments.
Strategic Focus and Outlook
The company continues to invest in its Utilibox platform, which remains a key differentiator in energy and emissions management. The increased amortisation expense reflects a shortened useful life for this intangible asset, signaling a strategic refresh or upgrade cycle. Energy Action also exercised over 1.2 million performance rights into shares during the half, aligning management incentives with shareholder value. No dividends were declared, consistent with prior periods, as the company prioritises reinvestment.
Auditor Review and Governance
The half-year financial statements were reviewed by RSM Australia Partners without qualification, confirming compliance with accounting standards and regulatory requirements. The board, led by Chair Caroline Wykamp, maintains a cautious stance on discretionary spending while managing capital and financial risks amid a competitive energy services market.
Bottom Line?
Energy Action’s revenue momentum contrasts with profit pressures, setting a cautious tone for the year ahead.
Questions in the middle?
- How will Energy Action manage rising amortisation and employee costs going forward?
- What impact will deferred loan repayments have on liquidity and capital strategy?
- Can the Utilibox platform upgrades drive sustainable margin improvement?
