Rubicon Water (RWL) investor relations material

Executive summary

• Revenue for H1 FY26 was AUD 29 million, down 9–9.4% year-over-year, mainly due to FX impacts, U.S. government funding delays, and a 23% drop in ANZ hardware and spare parts sales.

• Net loss after tax was AUD 6.4 million, up from AUD 1.4 million in the prior year, driven by lower revenue and higher depreciation.

• Major contract wins in Chile, Costa Rica, and Italy totaled AUD 11.9 million, with AUD 9.3 million in new contracts since January 1, more than double the prior period.

• Corporate funding for water stewardship is emerging as a new growth avenue, with direct contracts from major corporates for ESG-driven water savings.

• Rest of World segment revenue remained stable as increased activity in Europe offset U.S. project delays; Asia segment expected to recover in H2 FY26.

Financial highlights

• Revenue declined by AUD 3 million year-over-year, with AUD 1.7 million due to FX translation and AUD 1.3 million from lower volumes in the U.S. and Australia.

• Gross margin percentage fell by 6.7 points year-over-year to 35.5%, with 4.8 points due to revenue shortfall and FX, and 1% from lack of new U.S. contracts to absorb tariffs.

• Operating expenses rose by AUD 1.2 million, mainly from higher employee costs and legal fees related to exiting a China JV.

• Underlying EBITDA loss widened to AUD 5.9 million from AUD 1.7 million year-over-year; bottom line loss was AUD 6.4 million.

• Net operating cash outflow was AUD 2.9 million, compared to a AUD 2.2 million inflow in the prior year.

Outlook and guidance

• Strong H2 and FY 2026 expected, driven by improved market conditions, conversion of near-term projects, and a robust base business.

• Over AUD 30 million in tenders expected to close soon, with material impact on FY 2026 results.

• Pipeline includes 18 priority projects totaling AUD 189 million, with AUD 61 million in the close category.

• Asia segment expected to recover in H2 FY26, supported by increased project activity and billing milestones.

• Directors expect debt funding facilities to remain in place through February 2027, with cash flow forecasts dependent on project completions and receivable collections.