The Environmental Group (EGL) AGM 2024 Presentation summary

Financial performance and highlights

• Revenue increased by 18.8% to $98.3M, with normalised EBITDA up 51.7% to $10.1M and EBITDA margin rising to 10.3%.

• Net profit after tax rose 68% to $4.4M; operating cash flow was $4.2M, and cash at bank stood at $10.1M with a $5M undrawn facility.

• Over 50% of revenue is now recurring, mainly from service and maintenance contracts.

• Compound annual growth rate for normalised EBITDA was 47% over the last three years.

• Strong safety record with 359,000 hours worked and zero lost time injuries.

Business segments and market opportunities

• Baltec IES supports the transition to renewable energy with gas turbine solutions; addressable market estimated at $300M.

• EGL Energy provides boiler solutions and maintenance, with a $250M addressable market and 74% of earnings from service and maintenance.

• EGL Clean Air offers air pollution control systems, consolidating TAPC and Airtight, with a $400M addressable market.

• EGL Water delivers patented PFAS removal technology, targeting a multi-billion dollar market.

• EGL Waste Services provides recycling and waste recovery solutions, with an addressable market of $4–7.8B and a strong pipeline of $146M in recycling plant tenders.

Operational updates and strategic initiatives

• Baltec IES experienced strong topline growth but faced a significant project cost overrun; corrective measures have been implemented.

• EGL Energy invested in service capability and expanded its product line through a national distribution agreement with Fulton.

• EGL Clean Air grew service revenue by 5.5% despite subdued sales in extraction systems; entered a strategic partnership for dust suppression.

• EGL Waste expanded its service and maintenance offering, increasing cross-unit opportunities and client base.

• EGL Water received draft EPA approval for its PFAS treatment facility and secured a 20-year Australian patent for its technology.