REG - Water Intelligence - Q1 Trading Update

Water IntelligenceAnnouncement

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RNS Number : 8064E  Water Intelligence PLC  19 May 2026

Q1 Trading Update

Significantly Stronger Growth; Acceleration of Preventive Maintenance Strategy

Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water Intelligence"), a
leading multinational provider of precision, minimally-invasive leak detection
and remediation solutions for both potable and non-potable water is pleased to
provide its unaudited Q1 Trading Update for the quarter ended 31 March 2026,
as well as, an update on progress with its preventive maintenance competitive
strategy.  Q1 results demonstrate strong growth momentum on both financial
and operating dimensions.  Momentum in performance was reinforced in April.

·    Group reaffirms FY 2026 guidance

·    Q1 Year on Year revenue growth more than doubles to 9% despite
adverse weather conditions limiting execution during January

·    Growth drivers: US B2B channels for insurance and property management
(+16%) and non-US international segment (+38%)

·    Paid Pilots initiated for both StreamLabs and Bluebot water
monitoring products feeding B2B customer demand

·    April results reinforce Q1 especially B2B channel

Operating Update.  During 2025 and Q1 2026, the Group's core business -
American Leak Detection (ALD) - created proprietary workflows and trained its
technicians and professionals for "Five Star" service level agreements
incorporating cutting-edge wireless monitoring devices pioneered by Streamlabs
and Bluebot respectively into ALD's technology-based minimally-invasive leak
detection and repair services.

During Q1, ALD launched paid pilots with B2B customers for both types of
monitoring products.  The Group is now able to provide service level data to
its customers regarding integrated coverage from monitoring of water
infrastructure on digital dashboards to precision leak detection and
minimally-invasive repair services to aftercare solutions upon the emergence
of new issues.  Customer data is stored securely within ALD's Salesforce
CRM.  The Group sees strong market demand for such integrated offerings.

Capital Allocation.  During Q1, the Group continued its previously announced
capital allocation policy prioritizing organic growth and reinforcing its
Preventive Maintenance growth strategy.  The Group also has sufficient
resources to continue to be opportunistic with respect to acquisitions and to
provide shareholders liquidity with share repurchases.

Q1 Financials

·    Revenue increased by 9% to $23.2 million (Q1 2025: $21.3 million)

o  Doubling of revenue growth rate year over year (Q1 2025 grew 4% vs. Q1
2024)

o  Franchise royalty declined 2% to $1.58 million reflecting franchise
reacquisitions reducing the pool of franchise royalties (Q1 2025: $1.61
million)

o  Franchise-related activities (franchise sales, equipment sales,
business-to-business channels) grew by 14% to $2.6 million (Q1 2025: $2.2
million); B2B segment with represents most of this segment grew +16%.

o  US Corporate locations increased by 3% to $14.7 million (Q1 2025: $14.3
million)

o  International Corporate locations increased by 38% to $4.3 million (Q1
2025: $3.1 million) reflecting strong growth in Ireland

 

·    EBITDA Adjusted* increased by 8% to $4.4 million (Q1 2025: $4.1
million)

·    EBITDA Adjusted* margins remain at 19% vs. Q1 2025

 

·    Balance sheet remains strong at 31 March 2026

o  Cash at $5.5 million

o  Total Debt at $26.9 million; Net Debt at $21.4 million

o  Net Total Debt to EBITDA Adjusted Ratio of 1.35

Subsequent Events

·      April revenue and EBITDA growth reinforced Q1 growth momentum.

·      Strategic Partnership announced with Bluebot to sell wireless
monitoring products

·      Appointment of Michael Moulton as Group Chief Financial Officer
(non-board)

* EBITDA adjusted for non-cash share-based payments and non-core costs; PBT
adjusted for non-cash expenses of amortization, share based payments and
non-core costs

Commenting on the Group's performance, Executive Chairman, Dr. Patrick DeSouza
remarked:

"We are pleased with our team's operating progress in integrating leading
wireless monitoring products with our market-leading minimally-invasive leak
detection and repair services offerings. We are now able to offer first-class
solutions and provide a great user experience for our water infrastructure
customers, especially insurance companies and property management.  We see
strong market demand for such integrated offerings.

Q1 2026 financial results were much stronger than in Q1 2025.  April
reinforced this momentum. We anticipate continued growth momentum for our
technology-enabled solutions platform as customers look to preventive
maintenance to reduce the cost of water and the cost of damage from water
leaks."

The information contained within this announcement is deemed to constitute
inside information as stipulated under the retained EU law version of the
Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK
law by virtue of the European Union (Withdrawal) Act 2018. The information
is disclosed in accordance with the Company's obligations under Article
17 of the UK MAR. Upon the publication of this announcement, this
inside information is now considered to be in the public domain.

Enquiries:

Water Intelligence plc
 
Tel: +12039622217

Michael Moulton, Chief Financial Officer
 

 

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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