New Zealand · Delayed Price · Currency is NZD Gentrack Group Earnings Call Transcripts
Fiscal Year 2026
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Revenue declined 1.7% to NZD 110 million, but recurring revenue rose 11.6% and Veovo delivered strong growth. Two acquisitions (DTP and Factor) were completed, with Factor enhancing AI-driven pricing capabilities. FY 2026 outlook is unchanged, targeting >15% CAGR and 15–20% EBITDA margins.
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Revenue guidance was revised down due to delayed project deals, impacting both top-line and EBITDA. Management remains confident in midterm growth targets, prioritizing investment in product, AI, and expansion, while shifting toward higher recurring revenue and maintaining flexibility for buybacks and acquisitions.
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The acquisition of a leading Middle Eastern airport technology provider for NZD 17 million enhances global reach, leverages AI-centric capabilities, and brings strong synergies through expert staff and cross-selling opportunities. The deal is expected to be EPS accretive from FY2027 and strengthens the combined group's market position.
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The meeting highlighted strong revenue and profit growth, ongoing global expansion, and a focus on AI-driven innovation. No dividend was declared as capital is prioritized for growth, and all board resolutions were supported. Shareholders' questions centered on remuneration, AI competition, and share price volatility.
Fiscal Year 2025
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Revenue grew 8% year-over-year with strong recurring revenue and EBITDA growth, and NPAT more than doubled. Major milestones included the G2 launch and key contract wins, supporting a robust pipeline and medium-term growth targets above 15% CAGR.
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Revenue grew 9.8% to NZD 112 million, with recurring revenue up 17% and NPAT up nearly 35% year-over-year. Strong growth in Utilities and Veovo segments, major new wins, and robust cash generation support reaffirmed midterm guidance of >15% revenue CAGR and 15%-20% EBITDA margin.
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The meeting highlighted strong revenue growth, international expansion, and a focus on sustainability, with no dividend declared to prioritize investment. Board composition and governance practices were discussed, and all resolutions, including director elections and fee cap increase, received strong support.
Fiscal Year 2024
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Revenue grew 26% year-over-year, with strong underlying EBITDA growth and robust recurring and non-recurring revenues across utilities and Veovo. International expansion accelerated, cash generation was strong, and midterm guidance for >15% CAGR and 15%-20% EBITDA margin was reaffirmed.