Water Intelligence’s FY25: steady growth, fatter margins, and a bigger push into IoT and AI
Water Intelligence PLC has delivered a clean set of unaudited numbers for FY25 and set out an ambitious plan to scale its Internet of Things (IoT) and analytics offering through 2026. Revenue rose 9% to $90.4 million, with Adjusted EBITDA up 15% to $16.5 million and margins improving to 18%. The company’s balance sheet remains solid, and it has expanded its credit facilities to keep the M&A engine humming.
The strategy is clear: lean into preventive maintenance, layer on smart monitoring devices, and monetise the data. There’s momentum in the US and internationally, plus contract wins and channel expansion that should support 2026.
FY25 headline numbers show progress on growth and efficiency
Top line growth was matched by improved profitability. Management’s margin efficiency plan is showing through in an 18% Adjusted EBITDA margin, up from 17% in 2024. Adjusted profit before tax also moved up 9% to $9.2 million.
Note on definitions: Adjusted EBITDA and Adjusted PBT exclude non-core costs and non-cash share-based payments; Adjusted PBT also excludes amortisation. Adjustments include treatment of certain earn-outs as compensation expense. These are standard adjustments, but they do mean statutory profit is not disclosed here.
Key FY25 figures (unaudited)
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Group revenue | $90.4 million | $83.3 million | +9% |
| Adjusted EBITDA | $16.5 million | $14.3 million | +15% |
| Adjusted EBITDA margin | 18% | 17% | +1 pp |
| Adjusted PBT | $9.2 million | $8.4 million | +9% |
| Net total debt | $19.3 million | Not disclosed | – |
| Net total debt / Adjusted EBITDA | 1.17x | Not disclosed | – |
Operationally, the company cites “good growth across owned US and International corporate locations” and continued strong execution post year end.
Balance sheet: robust and ready, with more acquisition firepower
Water Intelligence ended FY25 with net total debt of $19.3 million, representing 1.17x Adjusted EBITDA. That’s a comfortable level for a consolidator in a fragmented market. The definition of total debt here includes bank debt and deferred acquisition payments, but not contingent “earn-up” bonuses.
Post period end, the group expanded its credit lines with M&T Bank. The working capital line is now $3.8 million, with $0.8 million drawn. The acquisition line is $22 million, with $19.5 million drawn. In plain terms: there’s some headroom left for deals, and the bank support signals confidence. It also suggests 2026 could see further bolt-on acquisitions to deepen coverage and capabilities.
Strategy update: preventive maintenance meets IoT and AI
Water Intelligence’s competitive pitch is “preventive maintenance” for ageing water and wastewater infrastructure. In 2025 it began selling StreamLabs wireless IoT water monitoring devices alongside its minimally-invasive leak detection and repair services. These devices allow early detection and faster response – helpful for homeowners, insurers, property managers and commercial clients.
In February (post year end), the group added Bluebot, via a strategic partnership with Lookout Labs, to widen the range of monitoring solutions and analytics “for any size pipe”. The plan is to scale IoT water management product sales through 2026, supporting both organic growth and margin expansion. Management also flags development of an AI-enabled analytics product using first-party data from the installed IoT base.
Why this matters for the investment case
- Cross-sell potential: Devices plus services deepens relationships and should lift lifetime value across the customer base, including insurers.
- Data advantage: First-party data is strategically valuable. If Water Intelligence can translate it into actionable insights (and revenues), that’s a differentiator.
- Margin opportunity: Management explicitly links IoT scaling to margin expansion in 2026. Execution will be key, but the direction is positive.
Commercial traction: insurance channel and Ireland contracts
There were further wins in the expanding national insurance channel for American Leak Detection, a core operating brand. Insurers like predictable outcomes and lower losses – preventive maintenance aligns with that.
In Ireland, contract wins are forecast to add at least $1 million in additional sales during 2026. It’s a modest number at group level, but a useful proof point for international expansion and the platform’s relevance beyond the US.
Board change: NED retirement
Bobby Knell, Non-Executive Director since 2018, will retire and step down on 31 March 2026. The Board plans to appoint another independent NED in due course. This looks like normal board refresh rather than a strategic shift.
Positives, watch-outs, and what could move the share price
What I like
- Consistent growth: Revenue up 9% and Adjusted EBITDA up 15% shows the core model is working.
- Improving margins: 18% Adjusted EBITDA margin suggests the efficiency plan is landing.
- Funding in place: Expanded bank facilities keep optionality for acquisitions and growth.
- Clear strategy: Preventive maintenance plus IoT and AI is logical and customer-centric.
What to watch
- Adjusted vs statutory: Statutory profit metrics and cash flow are not disclosed in this update. The audited results due by mid-June 2026 will matter.
- Debt headroom: The acquisition line is heavily drawn ($19.5 million of $22 million). There’s still room, but any larger deals may need more capacity or cash generation.
- IoT execution: Scaling StreamLabs and Bluebot, integrating data, and launching AI analytics are execution-heavy tasks. Timelines and early revenue contribution will be key indicators.
- Channel scaling: Further evidence of insurer channel uptake and international wins would support the 2026 outlook.
Jargon buster (quick and simple)
- Adjusted EBITDA: Earnings before interest, tax, depreciation and amortisation, adjusted to strip out non-core and certain non-cash items.
- Adjusted PBT: Profit before tax, adjusted for non-core items and amortisation.
- IoT: Internet of Things – connected devices that monitor and transmit data in real time.
- First-party data: Data collected directly from a company’s own devices or customers, rather than purchased from third parties.
- Line of credit: A flexible bank facility you can draw down as needed, up to a set limit.
My take for retail investors
This is a tidy trading update: solid growth, better margins, and a sensible push into smart monitoring and analytics. The balance sheet looks robust at 1.17x net debt to Adjusted EBITDA, and the expanded credit lines underpin the growth plan.
The big swing factor for 2026 is whether IoT device sales and the forthcoming AI-enabled analytics product can scale as planned and support margin expansion. If the insurance channel continues to build and the Ireland contracts land as forecast, that should provide incremental support to revenue growth.
On the cautious side, we need the audited numbers to see statutory profit and cash flow, and the acquisition facility is already well utilised. But overall, the direction of travel is positive, the strategy is cohesive, and the market backdrop for preventive water maintenance remains favourable.
Next stop: the audited FY25 results by mid-June 2026, and more colour on IoT/AI monetisation. That’s where the market will look for confirmation that the platform can do more than find leaks – it can predict and prevent them profitably.
