Gentrack strategic acquisitions offset softer half-year profit
Gentrack Group (ASX:GTK) unveiled its half-year results to March 31, delivering a resilient performance despite temporary operational headwinds.
Group revenue eased slightly to NZ$110.1 million from NZ$112 million in the prior corresponding period, impacted by protracted sales cycles and two unexpected new client delays within its utilities division.
Statutory net profit after tax compressed to NZ$5.1 million against NZ$7.2 million in H1 25, while underlying EBITDA, excluding acquisition costs, settled at NZ$7.9 million.
Despite these short-term pauses, the company's core recurring revenue rose 11.6% to NZ$85.3 million, underpinned by stellar growth in its airport-focused Veovo business, which continues to secure major international contract wins and upgrades.
Leveraging a robust, debt-free balance sheet holding NZ$73.2 million in cash reserves, Gentrack has deployed capital this May to accelerate its next-generation growth engine.
The technology provider finalised two strategic bolt-on acquisitions aimed at embedding artificial intelligence and advanced predictive capabilities into its flagship software platforms.
The company acquired UK-based DTP to inject AI-centric capabilities into its Veovo airport network, alongside purchasing New Zealand-founded SaaS business Prospero Energy (trading as Factor).
Factor’s machine-learning platform will be integrated into Gentrack’s g2 energy retail framework, empowering global utilities to manage risk, optimise commercial electricity pricing, and navigate highly volatile, renewable-driven grid markets.
Management re-affirmed its long-term conviction following the integrations, retaining its medium-term compound annual growth rate target of more than 15%.
