COSOL (COS) H2 2025 earnings summary

Executive summary

• Achieved AUD 116.8 million in revenue for FY 2025, representing 15% year-on-year growth, with 10% organic revenue growth and contribution from the Toustone acquisition.

• Completed the acquisition of Toustone, enhancing data and AI capabilities and supporting asset management as a service and a first-in-market AI-powered Maintenance Data Governance solution.

• Expanded customer base, with 27 customers now generating over AUD 1 million annually and 60% of revenue from repeat sources.

• Transitioned major projects to multi-year managed services contracts, increasing annuity revenue predictability.

• Focused on expanding operating margins and delivering double-digit EBITDA growth in FY 2026 through operating restructure and AI investment.

Financial highlights

• Underlying EBITDA increased by 7% to AUD 16.8 million, despite margin compression.

• Underlying NPAT-A rose 9.93% year-on-year, with a 3% uplift compared to FY 2024.

• Underlying EPS declined from AUD 0.0524 to AUD 0.0478 year-on-year, mainly due to higher amortisation and increased shares from the acquisition.

• Cash conversion improved to 85% of EBITDA, reflecting strong working capital management.

• Managed services revenue grew 17.8%, with diversification beyond natural resources.

Outlook and guidance

• Targeting single-digit organic revenue growth and double-digit earnings growth for FY 2026, with continued investment in AI and proprietary digital solutions.

• Expecting low double-digit total revenue growth, including full-year Toustone contribution.

• Focus on expanding wallet share within existing customers and margin expansion rather than net new customer acquisition.

• Continued investment in AI, with AUD 1.5 million planned for FY 2026.

• Dividend payout ratio reduced from 50% to 40% to support reinvestment.