REG - Water Intelligence - 2025 Full Year Trading Update & Board Change

Water IntelligenceAnnouncement

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RNS Number : 8702W  Water Intelligence PLC  17 March 2026

 

2025 Full Year Trading Update

Board Change

 

Good FY25 financial performance; positive outlook for FY26

 

Water Intelligence plc (AIM: WATR.L) ("Water Intelligence" or the "Group"), a
leading multinational provider of minimally-invasive, technology driven,
preventive maintenance solutions for aging water and wastewater
infrastructure, is pleased to provide a trading update for the year ended 31
December 2025 and an update to the Group's growth plan for 2026.

 

Financial highlights (unaudited):

 

·    Group revenue increased by 9% to $90.4 million (2024: $83.3 million),
supported by good growth across owned US and International corporate locations

·    Strong Adjusted EBITDA* growth for FY25 of 15% to $16.5 million
(2024: $14.3 million)

·    Adjusted EBITDA margin improvement to 18% (2024: 17%) driven by good
progress against margin efficiency plan

·    Adjusted PBT* growth of 9% to $9.2 million (2024: $8.4 million)

 

·    Robust balance sheet with a Net Total Debt** to EBITDA Adj ratio of
1.17 at year-end with net total debt of $19.3 million at year end

·    Continued strong operation execution post period end

·    Progress on expanding markets and revenue mix

 

* Adjusted EBITDA and Adjusted PBT are both adjusted for non-core costs and
non-cash expense of share-based payments; Adjusted PBT is also adjusted for
non-cash expense of amortization. Adjustments also include treatment for
earn-outs to reflect profits treated as compensation expense.

 

** Total Debt defined as bank debt plus all deferred acquisition payments but
does not include contingent payments for "earn-ups" as bonuses.

 

 

Continued Strong Execution Post Period End

 

v Expansion of existing Credit Facilities with M&T Bank: (i) Working
Capital Line of Credit expanded to $3.8 million of which $0.8 million is
drawn; and (ii) Acquisition Line of Credit expanded to $22 million of which
$19.5 million is drawn.

 

v Strategic Partnership with Lookout Labs, Inc. ("Bluebot") announced

 

v Additional Wins in Expanding National Insurance Channel for American Leak
Detection

v Contract Wins in Ireland forecast to add at least $1 million in additional
sales during 2026

 

 

The Group's competitive strategy of Preventive Maintenance is gaining
traction. During 2025, the Group began to sell StreamLabs wireless IoT water
monitoring devices.  IoT monitoring solutions complement the Group's
industry-leading, minimally-invasive leak detection and repair solutions and
enable it to provide "first responder" services after alerts for homeowners,
insurance companies, property management companies and commercial partners.
Given market receptivity to the Group's platform, in February, after the 2025
year-end, the Group added a further monitoring product, Bluebot, to expand the
range of solutions and analytics for any size pipe. The Group expects to scale
sales of IoT water management products to supplement organic growth and margin
expansion through 2026 to monetize its prior investments in its
Technology-enabled Solutions Platform. This includes development of an
AI-enabled data analytics product utilizing first-party data from the
installed base of IoT products.

 

Directorate Change

 

Bobby Knell, Non-Executive Director, has informed the Board of his intention
to retire and stand down from the Board on 31 March 2026. Bobby has been a
non-executive Director since 2018. The Board intends to appoint another
Independent Non-Executive Director to the Board in due course.

 

 

Dr. Patrick DeSouza, Executive Chairman remarked:

 

"We had a solid 2025 with continued growth. We are maintaining a strong
balance sheet while positioning ourselves for the future with an exciting
competitive strategy centered on preventive maintenance and driven by strong
market demand for Internet of Things and AI analytics to proactively minimize
water loss and damage.

 

The water infrastructure space remains fragmented, and we are differentiated
for customers with our scalable technology-enabled solutions platform - a One
Stop Shop - that provides wireless monitoring devices, data securely stored in
our cloud-based Salesforce platform and first responder capability driven by
analytics. Our focus for 2026 and beyond will be on delivering sales growth
and margin improvements now that we are putting the finishing touches on our
technology platform.  We are excited about the future for the Group's market
leadership.  We appreciate our shareholders' support along this journey to
create such a transformative platform."

 

 

The financial information in this trading update is unaudited. The Company
expects to announce its audited full year results for the year ended 31
December 2025 by mid-June 2026.

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain

 

 

Enquiries:

Water Intelligence plc

Laura Bass, Director, Strategic
Finance
Tel: +1 203 584 8240

 

Grant Thornton UK LLP - Nominated Adviser
                Tel: +44 (0) 20 7383 5100

Philip Secrett

Harrison Clarke

Ciara Donnelly

 

Canaccord Genuity Limited - Broker
 
            Tel: + 44 (0)207 523 8000

Simon Bridges

Harry Gooden

Elizabeth Halley-Stott

 

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