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 grew 12% year-over-year. Veovo and Amber delivered strong growth, while acquisitions of Factor and DTP position the business for future expansion. Cash remains strong, with M&A prioritized over buybacks.
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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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Group revenue grew 8% with recurring revenues up 13% and EBITDA up 18%, driven by strong EMEA and Veovo performance. G2 platform go-live and a robust pipeline support medium-term targets of 15%+ CAGR and 15-20% EBITDA margin.
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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 performance in utilities and airports, major new wins, and increased investment in R&D and sales support a positive outlook, with midterm guidance reaffirmed for 15%+ CAGR revenue growth.
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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 and cash generation despite higher LTI costs. Both utilities and Veovo segments delivered robust growth, and the outlook remains positive with midterm guidance reaffirmed, though FY25 results depend on deal timing.