Connexion Mobility Posts Record Quarterly Revenue and EPS Boost with Hallam Road Acquisition

Record Revenue and Profit Lifted by GM Canada and Acquisition

Connexion Mobility Ltd (ASX:CXZ) capped FY26 with a strong Q4 performance, reporting a 12% increase in quarterly revenue to $3.4 million and an 83% surge in net profit before tax to $1.1 million. Diluted earnings per share nearly doubled, rising 89% to 0.098 US cents, underpinned by a combination of organic growth and strategic acquisition.

The quarter’s financial boost was driven by a full quarter of revenue from General Motors Canada’s Enhanced Exposure Program (EEP), a counterpart to the GM US courtesy transportation initiative, alongside one month of earnings contribution from the newly acquired Hallam Road Automotive (HRA) in Melbourne. The company also benefited from an R&D tax credit for FY25, adding $0.3 million to the bottom line.

Hallam Road Automotive Acquisition Strengthens Earnings and FX Profile

In May 2026, Connexion completed the acquisition of Hallam Road Automotive, a well-established automotive service and repair centre. The deal, valued at approximately A$5 million (US$3.5 million) including a performance-based earn-out, was immediately accretive to earnings per share by an estimated 25-35%. This acquisition diversifies Connexion’s revenue streams and significantly reduces its exposure to foreign exchange volatility, given HRA’s AUD-denominated earnings.

Hallam Road Automotive’s founder remains involved on a consultancy basis to ensure operational continuity. The transaction was funded through a combination of existing cash reserves and a new A$2.5 million amortising debt facility with National Australia Bank, reflecting Connexion’s disciplined capital management approach.

Software Platform Expansion and OEM Partnerships Drive Recurring Revenue

Connexion’s core software business, powering courtesy transportation programs for North American OEMs and dealerships, continues to grow steadily. Subscription-based revenue hit a record $2.4 million for the quarter, supported by 27 net-new dealership subscriptions and ongoing customisation projects for GM Canada and GM US.

GM US extended its agreement for a further seven months, signalling continued confidence in Connexion’s ability to meet OEM needs. The company also expanded its commercial partnerships with players like Tollaid, OnDemand, UVeye, Stripe, and Modives, broadening its marketplace offerings and embedding new features valued by customers.

Investment Portfolio and Capital Allocation Remain Strategic Priorities

Connexion’s investment portfolio contributed $0.1 million in earnings during the quarter, a 64% increase quarter-on-quarter, accounting for 13% of group net profit before tax. However, the company’s net cash and investments declined by 36% to $3.8 million, primarily due to the capital deployed for the Hallam Road acquisition.

While no shares were repurchased this quarter, Connexion has previously bought back approximately 357 million shares at an average price of A$0.022, illustrating a balanced approach to capital management that supports both organic growth and opportunistic acquisitions.

Strategic Focus on Sustainable, Diversified Earnings Growth

Connexion’s mission to be the “Connexion” between fleet owners and the future of mobility is reflected in its dual-platform strategy: advancing its software platform to be the single solution for moving people, parts, and vehicles, while developing its automotive service business to set a new standard in customer experience.

The company is prioritising reinvestment into areas that promise clear returns, including R&D and deepening OEM and dealership relationships. With a strong balance sheet and proven ability to integrate acquisitions, Connexion is actively scouting further M&A targets that fit its platform model, aiming to enhance both earnings size and sustainability.