Vital (VTL) H1 2025 earnings summary

Executive summary

• Net loss after tax of $0.54 million for 1H FY2025, compared to a $0.05 million profit in the prior year, with revenue declining to $12.6–$12.9 million due to challenging macroeconomic conditions and public sector downsizing.

• Adjusted EBITDA fell 24.2% year-over-year to $2.4 million, with EBITDA margin declining to 18.8%.

• Wireless segment showed resilience with 0.8% revenue growth to $8.8 million, while the wired segment saw a 13% revenue decline to $4.1 million.

• Major contract wins in utilities, including an 11-year deal with Transpower, are expected to drive future growth from FY26.

• Utilities & Energy segment contributed 10.6% of total revenue, with strong growth in installation and hardware.

Financial highlights

• Revenue declined 4.1% year-over-year to $12.6–$12.9 million, mainly due to wired fiber revenue dropping 12–13%.

• Adjusted EBITDA: $2.4 million, down 24.2% year-over-year; adjusted EBITDA margin: 18.8%.

• Net loss after tax: $0.54 million, compared to a $0.05 million profit in the prior year.

• Operating costs increased 2.2%, reflecting costs from new one-off revenue streams.

• Net cash from operating activities was $2.9 million, down from $3.7 million in the prior year.

Outlook and guidance

• Full-year 2025 revenue guidance maintained at $26–$27 million, with expectations to deliver in the lower half of the range due to ongoing economic uncertainty.

• Adjusted EBITDA guidance remains on track, but likely at the lower end; FY2025 guidance: Adjusted EBITDA $5.8–6.2 million, Adjusted NPAT $0.0–0.2 million, Adjusted FCF $3.2–3.9 million.

• Second half expected to be stronger, driven by in-flight projects and committed orders.

• Transpower contract to contribute to revenue and EBITDA growth from next year.

• No explicit forward-looking guidance provided in some disclosures; no material post-reporting events.