The Environmental Group (EGL) H1 2025 earnings summary

Executive summary

• Revenue increased 16.1% year-over-year to $54.2M, with organic growth and over 52% recurring revenue from service and maintenance.

• EBITDA before significant items was $3.89M, down 13.9% due to a one-off $1.2M cost overrun in Baltec; underlying growth would have been 12.6% excluding this event.

• Net profit after tax was $1.44M, down 30.5% year-over-year.

• Cash on hand stood at $8.0M, supporting ongoing growth initiatives.

• No dividends were paid, recommended, or declared during the period.

Financial highlights

• Baltec revenue surged 84.5% to $19.7M; EBITDA up 14.9% to $1.9M, margin fell to 9.4% due to a one-off $1.2M error.

• EGL Energy revenue up 34% to $24.4M; EBITDA up 15.1% to $3.1M, margin declined to 12.5% due to onboarding new staff.

• Clean Air revenue down 45% to $9.6M; EBITDA down 54.8% to $0.8M, margin at 8.2%, impacted by lithium sector downturn.

• Waste revenue up 24% to $0.6M; EBITDA steady at $0.1M, with a strong pipeline of recycling plant tenders ($108M).

• Gross profit for 1HFY25 was $14.3M (26.4% margin), up from $13.4M.

Outlook and guidance

• FY25 EBITDA is forecast to rise 10–15%, with a strong second half expected and robust sales pipeline in Baltec, waste, and water segments.

• ERP implementation over the next 12 months aims to improve efficiency and accuracy.

• Continued growth expected in FY2026, with full-year benefit from additional staff and new product lines.