Water Intelligence Reports Strong 2025 Results with 9% Revenue Growth and Strategic Push into Preventive Maintenance

Water Intelligence 2025 results show higher revenue, better margins and a bigger international contribution

Water Intelligence has delivered a solid set of audited 2025 results. Revenue rose 9% to $90.4 million, adjusted EBITDA rose 15% to $16.5 million, and adjusted basic earnings per share increased 8% to $0.39. For an AIM company pushing growth while still buying back shares and making acquisitions, that is a credible outcome.

The bigger picture is just as interesting. Management is trying to shift the business from mainly reactive leak detection into preventive maintenance – in plain English, using monitoring devices, data and ongoing service contracts to stop leaks before they become expensive disasters. If that works, it could make the business more recurring, more scalable and probably more valuable.

Key 2025 figures	2025	2024	Change
Revenue	$90.4 million	$83.3 million	9%
EBITDA	$15.1 million	$13.1 million	15%
Adjusted EBITDA	$16.5 million	$14.3 million	15%
Adjusted EBITDA margin	18.2%	17.1%	110bps
Statutory profit before tax	$6.8 million	$6.4 million	7%
Adjusted profit before tax	$9.2 million	$8.4 million	9%
Adjusted basic EPS	$0.39	$0.36	8%
Net total debt	$19.3 million	$15.7 million	23%

American Leak Detection stayed steady while international growth did the heavy lifting

The core US business, American Leak Detection, grew 4% to $75.7 million. That is decent rather than spectacular, but it matters because this is the engine room of the group. Within that, US corporate stores grew 7% to $59.6 million, which suggests the company-owned operations are still moving well.

The standout was Water Intelligence International, which grew 44% to $14.7 million from $10.3 million. Ireland was the big driver, with sales more than doubling as Irish Water pushed various initiatives forward. That matters because it shows growth is not just a US story anymore.

There is a slight wrinkle in the franchise numbers. Royalty income fell 7% to $6.0 million, but management says that was mainly due to previous franchise reacquisitions reducing the pool of royalty-paying locations. On a like-for-like basis, royalties would have grown 1%. That feels reasonable, although investors should still note that reacquiring franchises changes the mix of earnings and usually needs more capital.

Water Intelligence margin improvement is the most encouraging part of these 2025 results

Revenue growth is nice. Margin growth is better. Adjusted EBITDA margin improved to 18.2% from 17.1%, and same-store corporate margins rose to 18.9% from 17.8%.

Adjusted EBITDA strips out certain non-cash and non-core items, so it is a cleaner measure of underlying operating performance. It is not the same as cash profit, but it is useful for spotting whether a company is getting more efficient. On that score, Water Intelligence looks to have done a good job.

Profit before tax also improved, with statutory profit before tax up 7% to $6.8 million and adjusted profit before tax up 9% to $9.2 million. The adjusted number also excludes amortisation – the accounting charge that spreads the cost of acquired intangible assets over time – plus other non-core items. That is helpful, but I would not ignore the statutory number either, because acquisitions are a real part of how this business grows.

Preventive maintenance strategy could be a genuine growth driver, but it still needs proving

This is the strategic heart of the RNS. Water Intelligence is building what it calls a technology-enabled services platform around leak monitoring devices, installation, first responder services, repairs, aftercare and data products. The aim is to move customers from one-off repairs to subscription-style preventive maintenance.

In theory, that is attractive. Preventive maintenance should mean more repeat revenue, closer customer relationships and better economics than waiting for pipes to fail. The company says it integrated data feeds into Salesforce, formed partnerships with StreamLabs and Bluebot, and began paid pilots with large customers in Q1 2026.

That last bit is the key. Paid pilots are good news because they suggest customers are willing to test the offer with real money. But a pilot is not the same thing as a scaled rollout. Investors should treat this as promising, not proven.

Acquisitions, debt and share buybacks – sensible capital allocation with a few watchpoints

During 2025 the group acquired franchises in South Carolina and West Central Georgia, plus Effective Plumbing in Connecticut. It also repurchased $1.6 million of shares. After the year-end, it bought the Southern Colorado franchise for $200,000.

There is logic here. Reacquiring franchises can convert royalty income into full revenue and profit, and plumbing capability fits neatly with the preventive maintenance push. But this strategy also increases complexity and ties up more capital.

Net total debt rose 23% to $19.3 million, and the leverage ratio was 1.17x adjusted EBITDA, up from 1.10x. That is still a pretty manageable level. It does not look stretched, especially with adjusted EBITDA at $16.5 million and operating cash flow of $14.0 million. Even so, finance expense climbed to $2.4 million from $1.7 million, so debt is not free and investors should keep an eye on it.

One more small caution flag: there was a $125,000 goodwill impairment in Australia. It is not big in group terms, but impairments are reminders that not every acquired asset performs exactly as hoped.

Q1 2026 trading update suggests momentum has continued into the new year

The company did not stop at the 2025 numbers. It also said Q1 2026 revenue rose 9% to $23.2 million, with adjusted EBITDA up 8% to $4.4 million. ALD grew 4%, WII grew 38%, and the B2B part of ALD grew 16%.

That B2B rebound matters because franchise-related B2B sales had fallen 5% in 2025. Management says the recovery may be linked to paid pilots on preventive maintenance offerings. If that trend continues into the second half, the market will probably pay attention.

The group also expanded its M&T Bank facilities in February 2026. That gives it more flexibility, but it also reinforces the point that this growth plan still depends on disciplined execution and careful debt management.

What Water Intelligence shareholders should take from this RNS

My read is positive. This was not a blowout set of results, but it was a high-quality one. Growth was real, margins improved, cash generation was solid, and the balance sheet still looks under control despite higher debt.

The most exciting part is the preventive maintenance strategy because it could shift Water Intelligence into a more recurring and more defensible business model. The risk is that management is clearly enthusiastic, and some of the language around AI, disruption and platform potential is aspirational rather than proven by today’s numbers.

So the investment case looks stronger, but it still needs delivery. For now, retail investors should like the combination of 9% revenue growth, 15% adjusted EBITDA growth, improving margins and encouraging Q1 2026 momentum. The next big test is whether those pilots turn into meaningful product and subscription revenue in the second half of 2026.

If they do, this could look like an important transition year rather than just another decent annual report.