Beonic Posts Record $3.9m EBITDA as Moroccan Airports Project Nears Completion

Record Profitability and Margin Expansion

Beonic Limited (ASX:BEO) posted a standout FY26 with EBITDA surging 50% year-on-year to $3.9 million, representing a 16.8% margin up from 11.9% in FY25. This leap was underpinned by a sustained gross margin improvement to 78.4%, reflecting the company's focus on high-quality revenue streams and operational efficiency. Total revenue for the year climbed 5.5% to $23.2 million, signalling steady top-line growth.

Moroccan Airports Project Nearing Full Delivery

The rollout of Beonic's passenger flow management solutions across seven Moroccan airports is advancing rapidly. Deployment has been completed at five airports, with the remaining two underway and full delivery anticipated in the first half of FY27. Once fully operational, this contract is expected to contribute approximately AUD $2.0 million in Annual Recurring Revenue (ARR), with $1.6 million already recognised as of 30 June 2026. The project represents a significant revenue stream, with incremental billings of up to AUD $6.8 million depending on currency fluctuations.

Resilient Recurring Revenue Amid Currency Headwinds

Beonic's ARR closed FY26 at $17.3 million, a modest 1% increase on the prior year despite a strong Australian dollar weighing on foreign currency translations. On a constant currency basis, ARR would have been $17.9 million. Quarterly recurring revenue was $4.2 million, slightly down 2.4% year-on-year, impacted by exchange rate movements against the USD, GBP, EUR, and NZD. The company’s diversified geographic footprint across APAC, EMEA, and the USA continues to underpin its recurring revenue base.

Robust Contract Wins and Renewals Drive Growth

In Q4 FY26, Beonic secured $3.2 million in new contracts and expansions, spanning the US, APAC, and EMEA regions. Notable wins include a new queue management deployment at Bradley International Airport in Connecticut, LiDAR sensor expansions at Charlotte Douglas and Richmond International Airports, and a national rollout of people-counting analytics for Rivian stores in the US. The APAC region delivered its largest volume of activity, with major managed WiFi and people-counting expansions at GPT’s Sunshine Plaza and new contracts at Dandenong Square.

Renewals were equally strong, totalling $3.5 million and including multi-year agreements with key clients such as ISPT, QIC, Land Securities, and Verizon. Airport platform renewals at Charlotte Douglas, Narita, Phoenix Sky Harbor, and several US airports underpin the company’s stable revenue stream.

Balance Sheet Strengthened Through Capital Raise and Debt Retirement

Beonic completed a fully subscribed pro-rata renounceable entitlement offer, raising approximately $3 million at $0.08 per share. The capital raise bolstered the balance sheet and funded ongoing growth initiatives. Concurrently, the company retired a legacy USD $3.1 million debt facility during FY26, reducing financial leverage. Operating cash flow turned positive, with $0.6 million generated for the year compared to an outflow of $0.8 million in FY25, reflecting improved cash management.

FY27 Focus on Growth and Innovation

Looking ahead, Beonic aims to convert its $38 million qualified sales pipeline into revenue while expanding its footprint in airport and retail IoT solutions globally, including further deployments at Denver International Airport and Moroccan airports. The company is also advancing its Beonic Vision product, which leverages AI and existing camera networks to deliver flow analytics without compromising privacy, a solution already rolling out in retail and airport venues.

Financial discipline remains a priority, with plans to maintain a lean cost structure, drive customer success initiatives, and invest in R&D to sustain competitive advantage. The company’s ability to deliver key projects and minimise customer churn will be critical as it scales.