The Environmental Group (EGL) investor relations material

Executive summary

• Revenue increased 8.6% year-over-year to $58.9M, with EBITDA before significant items up 25.9% to $4.9M, and recurring revenue now 54.3%, driven by service and maintenance contracts.

• Major operational achievements include a successful ERP system upgrade consolidating three legacy systems and the consolidation of multiple business premises into unified state facilities.

• No lost time injuries recorded over 205,000 hours worked, highlighting strong safety performance.

• Net assets remained stable at $45.6M as of 31 December 2025.

• Net loss after tax was $(0.3)M, impacted by $2.7M in significant items including ERP, restructuring, and relocation costs.

Financial highlights

• Underlying net profit after tax was $2.4M, up from $1.6M year-over-year; statutory net loss after significant items was $0.3M.

• Energy segment revenue rose 39.8% to $34.1M, with EBITDA up 32.6% to $4.1M.

• Waste segment revenue increased to $2.3M, up 308.2% year-over-year, with EBITDA up 1174% to $0.7M.

• Cash flow conversion was approximately 83%-84%, with operating cash flow of $1.4M inflow for the half-year.

• Gross profit rose 21.7% to $17.4M, and gross margin increased to 29.5% from 27.1% year-over-year.

Outlook and guidance

• Guidance maintained for 15–20% earnings growth on FY25 normalised EBITDA, with a strong second half expected.

• Growth initiatives and recent investments in ERP and operational consolidation are expected to drive improved earnings and profitability.

• Recurring revenue streams are projected to strengthen further, with November reaching 59%.

• Strong order books and pipelines across all segments, with visibility out to 2030 in Baltec and robust demand in energy and waste.