Gentrack Group (ASX:GTK) reported impressive revenue growth for the year ended 30 September 2024, with group revenues rising 25.5% from $169.9 million in 2023 to $213.2 million. This was driven by strong demand in the utilities and airport management software segments, bolstered by new customer acquisitions and upgrades.
However, cost pressure moderated overall results. EBITDA remained unchanged at $23.6 million, weighed down by higher costs associated with long-term incentive (LTI) equity programs and higher investments in research and development. These factors also contributed to a decline in net profit after tax to $9.5 million, down from $10.0 million in fiscal 23. The company reported earnings per share (EPS ) by 5.8 cents, compared to 6.2 cents the previous year.
Gentrack, headquartered in Auckland, New Zealand, and dual-listed on the NZX, provides software solutions for utilities and airports. Its utilities segment provides technology to energy and water retailers to optimize operations, while its Veovo division offers airport management solutions to improve passenger experiences and operational efficiency. The company serves customers at more than 140 airports worldwide and has been a key player in supporting the transition to net-zero emissions.
Revenue from the utilities segment increased 22.6% to $181.3 million, with underlying growth reaching 51% after accounting for lost revenue from delinquent customers. Meanwhile, Gentrack’s airport management division, Veovo, reported a 45.5% increase in revenue to $31.9 million, supported by major contracts in Saudi Arabia and the United Kingdom.
CEO Gary Miles praised the company’s progress, saying, “We continue to modernize critical industries, helping customers achieve operational excellence and sustainability goals.”
Gentrack has decided not to declare a dividend, choosing instead to reinvest its $66.7 million in cash reserves into growth initiatives, including ongoing launches of its g2.0 technology platform.