REG - Water Intelligence - Nine Months Trading Update

Water IntelligenceAnnouncement

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RNS Number : 1983G  Water Intelligence PLC  05 November 2025

Nine Months Trading Update: Strong Profit Acceleration

Water Intelligence plc (AIM: WATR.L) (the "Group" or "Water Intelligence"), a
leading multinational provider of preventive maintenance solutions for water
and wastewater infrastructure ranging from wireless monitoring to precision,
minimally-invasive leak detection and remediation is pleased to provide its Q3
Trading Update for the nine-month period ended 30 September.

The Group performed strongly during Q3 along all measures: revenue; profit;
EBITDA (earnings before interest, taxes, depreciation, amortization) and
margins thus reinforcing Q2 momentum.  Operating improvements, conceptualized
in the 2024 Annual Report as the "Dallas Template," produced increased
efficiencies. The Group continues to be in-line with market expectations for
2025 and is increasingly confident about expectations for 2026.

The Water Intelligence balance sheet remains strong and under-levered. Capital
allocation included a significant amount of share repurchases during Q3 in
addition to investments for accelerating organic growth and acquisitions.

Financial Highlights: 9 months ended 30 September 2025

·    Group Revenue increased by 9.2% to $69.3 million (Q3 2024: $63.5
million)

o Franchise royalty decreased by 8% to $4.7 million (Q3 2024: $5.2 million)
reflecting franchise acquisitions removing available income from franchise
royalty streams

o Franchise-related activities (franchise sales, equipment sales,
business-to-business channels) decreased by 10% to $7.5 million (Q3 2024: $8.3
million) reflecting fewer franchises due to acquisitions by corporate

o US Corporate sales increased by 8.2% to $46.2 million (Q3 2024: $42.7
million)

o International Corporate sales rose by 49.4% to $11.0 million (Q3 2024: $7.3
million)

·    Group Statutory EBITDA rose by 14% to $12.7 million (Q3 2024: $11.1
million)

·    Group Adjusted EBITDA (before non-cash share-based payments; and
non-core costs) rose by 25% to $13.9 million (Q3 2024: $11.1 million)

·    Group Statutory PBT grew by 4% to $6.5 million (Q3 2024: $6.3
million)

·    Group Adjusted PBT (before non-cash expenses of amortization and
share-based payments; and non-core costs/gains) increased by 23% to $8.5
million (Q3 2024: $6.9 million)

·    Adjusted PBT margins increased to at 12.2% (Q3 2024: 10.9%)

·    Adjusted EBITDA margins increased to 20% (Q3 2024: 18%)

·    Balance sheet strong at 30 September 2025

o Cash and equivalents at $9.2 million

o Net Total Debt of $23.2 million

o Net Total Debt to EBITDA Adjusted TTM ratio: 1.1

 

Financial Highlights:  Q3 2025 vs. Q3 2024

·    Group Revenue:                      $24.3 million
+10.7%

·    EBITDA Adjusted:                $4.6 million +52.6%

·    EBITDA Adjusted Margin:    19% (Q3 2024: 14%)

·    PBT
Adjusted:
$2.8 million +68.2%

·    PBT Adjusted Margin:           12% (Q3 2024: 8%)

Operational Improvements from "Dallas Template": (% of sales Q3 2025 vs. Q3
2024)

·    Direct Labor costs down by 2%

·    Overhead Labor costs down by 1.8%

·    Consumables costs down by 1%

·    Vehicle/Fleet expense down by 1%

·    Bad Debt down by 1%

 

Q3  Capital Allocation / Corporate Development

·    Organic Growth: Launch of wireless monitoring business line from
StreamLabs Partnership after six months of investment training, workflow
changes, technology applications, inventory management processes

·    Acquisitions:

o Reacquisition of Middle Georgia franchise

o Reacquisition of South Brisbane & Gold Coast, Australia franchise

·    Share Repurchases:

o During Q3:                 118,000

o YTD:                          398,000

o Total currently in Treasury:    514,150

·    Strategy Presentation at Canaccord Genuity's Annual Growth
Conference, Boston, Massachusetts

o Competitive Strategy:  Preventive Maintenance

o Technology Enabled Services Business Model enhanced by initiation of
wireless water monitoring sales leveraging StreamLabs partnership

o Dallas "Template" leading to higher operating margins and reduced overhead
from regional consolidations

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

 "We had a strong Q3 in terms of both revenue and profits which builds upon
the momentum from Q2.  Leadership at each of our two operating subsidiaries -
American Leak Detection and Water Intelligence International delivered
outstanding results that are expected to continue in 2026.  This is just the
beginning, as product partnerships for the smart home, such as StreamLabs
which we are now launching across the American Leak Detection network after
six months of training, will supplement both our current established base of
revenue and our outlook for 2026.

With our strong balance sheet, execution of the "Dallas Template" and our
efficient, scalable, technology-enabled Preventive Maintenance platform for
water infrastructure, we can deploy capital more readily to accelerate growth
- both organic and acquisition-driven."

 

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

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 - Joint Broker
 
Tel: + 44 (0)207 523 8000

Simon Bridges

Harry Gooden

Elizabeth Halley-Stott

Dowgate Capital Ltd - Joint Broker
 
Tel: +44 (0)20 3903 7715

Stephen Norcross

Paul Richards

Amber Higgs

 

 

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