ASX and NZX listed utilities and airports software provider Gentrack Group has reported a 9.8 per cent increase in revenue to NZ$112 million (A$103 million) for the half-year ending 31 March 2025.
The company saw recurring revenues jump 16.7 per cent to NZ$76.4 million, while statutory net profit after tax (NPAT) increased 34.7 per cent to NZ$7.2 million compared to the same period last year.
Earnings before tax rose 5.1 per cent to NZ$13 million as the company invested more heavily in sales and its g2.0 platform.
The company's g2.0 is an end-to-end product-to-profit solution designed specifically for utility companies undergoing digital transformation.
Gentrack expects earnings before tax to grow faster than revenue for the full year.
Cash reserves strengthened considerably to NZ$70.7 million, up from NZ$39.3 million at the same point last year and NZ$$4 million higher than at the beginning of the current financial year.
The company's utilities business grew revenue by 7.2 per cent to NZ$92.8 million, driven by a 17 per cent increase in recurring revenue as prior contract wins and upgrades flowed through to the bottom line.
Veovo, Gentrack's airport operations business, performed particularly well with revenue growing 24 per cent to NZ$19.2 million.
This growth came from new customer wins in the UK and Middle East, along with upgrades in the Asia-Pacific region, and Australia; the New Zealand market is described as being flat.
In a win for Veovo, London Gatwick selected the company for its Integrated Airport Control project following what Gentrack described as "a highly competitive process."
This project will serve as an enabler for Gatwick's journey to airport 4.0 and supports the expansion of Veovo's artificial intelligence and machine learning capabilities.
Despite the strong results, the company's board decided not to pay a dividend, preferring to reinvest capital to fund growth opportunities in what it describes as "high growth and consolidating markets."
Looking forward, Gentrack expects full-year revenue to be at or above NZ$230 million with an earnings before tax margin above 12 per cent.
Gentrack said that as it provides essential services with little direct impact from global tariff uncertainties, and in case of a global downturn, does not expect the rate of transformation of utility companies to slow.
The company also highlighted that the weakening of the New Zealand and Australian dollars has benefited its operations due to its global customer base.
-1.jpg&w=100&c=1&s=0)
.png&w=100&c=1&s=0)
