Energy One Accelerates European Growth with $99.8m GMSL Acquisition

Energy One's FY26 Momentum Sets Stage for Expansion

Energy One (ASX:EOL) closed FY26 on a high note, delivering $69.9 million in revenue, up 14% year-on-year, and net profit after tax soaring 38% to $8.1 million. Recurring revenue, the backbone of the business, grew 17% to $63.5 million, now representing 91% of total revenue, a testament to the company’s resilient, subscription-driven model. The group also expanded its cash EBITDA margin by 4 percentage points to 21%, reflecting disciplined cost management and operational leverage.

CEO Ben Tranier highlighted the year as a period of strategic transformation, with a completed CEO transition, reorganised European operations, and a sharpened sales focus. AI initiatives gained traction, delivering early productivity wins, while ISO 27001 certification underscored Energy One’s commitment to cybersecurity amid increasing digital complexity in energy markets.

$99.8 Million Acquisition of GMSL to Cement European Leadership

In a bold move to accelerate its Software + Services strategy, Energy One announced it will acquire Gas Management Services Limited (GMSL) from Belgian energy infrastructure group Fluxys in an all-scrip deal valued at approximately A$99.8 million. The acquisition, structured as the issuance of 7.09 million new Energy One shares to Fluxys, will see Fluxys become Energy One’s largest shareholder with an 18.26% stake.

GMSL, a specialist provider of energy market software and 24/7 operational services across 18 European gas networks and 15 power grids, complements Energy One’s existing European operations. The deal is expected to be materially value accretive, with an estimated 9.4x FY26 pro forma EBITDA multiple before synergies and a forecast 35% EPS accretion for FY26. Synergy benefits of up to A$4.1 million annually are targeted by FY28 through revenue growth and operational efficiencies.

Strategic and Financial Upsides Reinforce One-Stop-Shop Ambition

The acquisition advances Energy One’s ambition to build a comprehensive, integrated software and services platform for energy market participants. By combining GMSL’s mission-critical gas nominations, scheduling, balancing, and managed operations expertise with Energy One’s software suite, the group aims to offer a broader, more capable one-stop-shop solution across European gas and power markets.

Fluxys’ ongoing service agreements with GMSL and board nomination rights further solidify the strategic partnership, aligning infrastructure expertise with software innovation. Energy One’s board unanimously supports the transaction, recommending shareholder approval at an upcoming meeting.

Financial Strength and Growth Pipeline Position Energy One for FY27

Energy One enters FY27 with a strengthened balance sheet, net cash position, and a robust pipeline. The group reported $5.1 million in committed but unbilled Annual Recurring Revenue (ARR), underpinning its guidance for at least 15% recurring revenue growth in the coming year. The company targets a 30% Cash EBITDA margin run-rate by FY27’s end, reflecting continued operating leverage and margin expansion.

While customer attrition in parts of the Australian trading services segment increased during FY26, Energy One is investing in customer success and cross-sell initiatives to improve retention and expand long-term customer value. The acquisition of GMSL is expected to enhance these efforts by broadening the customer base and cross-selling opportunities across Europe.

Governance and Deal Conditions to Watch

The GMSL acquisition remains subject to customary conditions precedent, including Energy One shareholder approval and foreign investment clearance under Australia’s Foreign Acquisitions and Takeovers Act. The consideration shares will be escrowed for 12 months with agreed exceptions. Fluxys gains rights to nominate up to two directors depending on its shareholding level, embedding its influence in Energy One’s governance.

The deal includes exclusivity provisions with a £3 million reverse break fee payable by Energy One under certain termination scenarios. Completion is expected by November 2026, with transition services from Fluxys to GMSL planned for six months post-close.