Water Intelligence (WATR) H2 2024 earnings summary

Executive summary

• Achieved 10% revenue growth to $83.3M in 2024, with EBITDA up 11% to $13.1M and statutory PBT up 2% to $6.4M year-over-year.

• Launched the “Next 50” strategic plan, focusing on scaling a technology-enabled services (TES) platform for preventive water infrastructure maintenance.

• Completed key acquisitions, including reacquisition of Dallas franchise, a plumbing company in Connecticut, and a franchise in Georgia/South Carolina, plus a strategic partnership with StreamLabs Water.

• Strong balance sheet with $12.1M cash at year-end and net debt/EBITDA adjusted ratio of 1.1.

Financial highlights

• Group revenue increased 10% to $83.3M (2023: $76M); ALD revenue up 7% to $73M; WII revenue up 35% to $10.3M.

• EBITDA grew 11% to $13.1M; adjusted EBITDA up 6% to $14.2M.

• Statutory EPS up 6% to 26.9 cents; fully diluted EPS up 6% to 26.3 cents.

• Adjusted PBT down 4% to $8.4M due to non-cash and non-core costs.

• US corporate-operated revenue up 11% to $55.9M; international corporate revenue up 35% to $10.3M.

• Franchise royalty income declined 3% to $6.5M due to reacquisitions; franchise-related activity revenue down 4% to $10.7M.

Outlook and guidance

• Confident in delivering enhanced organic growth and faster integration from acquisitions by leveraging the Dallas Template and TES platform.

• Plan to introduce new KPIs to better reflect competitive differentiation and scalability.

• No significant new technology investments required; focus on scaling existing platform and partnerships.