Rubicon Water (RWL) H2 2025 earnings summary

Executive summary

• Achieved record revenue of AUD 69.1 million in FY25, up 18% year-over-year, driven by strong growth in the U.S., Europe, and Rest of World segments, now operating in 22 countries with over 70% of revenue internationally.

• Net loss after tax improved to AUD 7 million from AUD 11 million in FY24, reflecting operational improvements and one-off costs related to U.S. tariffs, freight, and China joint venture restructuring.

• Operating cash flow turned positive at AUD 5.4 million, the highest since FY18.

• Major contracts secured in Mexico, Italy, Costa Rica, and the U.S., with a robust pipeline for FY26.

Financial highlights

• Revenue increased 18% year-over-year to AUD 69.1 million, the strongest since 2021.

• Gross margin improved to 41.2%–41.4%, despite negative impacts from international freight and U.S. tariffs.

• Underlying EBITDA loss reduced to AUD 4.6–4.8 million, with a reported net loss after tax of AUD 7 million.

• Operating cash flow positive for the last three halves, with a AUD 12.4 million improvement over FY24.

• Net debt reduced by 55% to AUD 14.3 million, lowering gearing from 58% to 22%.

Outlook and guidance

• Entering FY26 with 22 major pipeline projects valued at AUD 184 million, with expectations for continued growth in the U.S., Europe, and Asia.

• Anticipates further revenue growth as new contracts are signed and delivered, with multi-year contracts contributing to future results.

• Recurring revenue expected to grow, with emphasis on software and support services.

• Optimistic about China and India markets following restructuring and new joint venture partnerships.