SciDev Ltd (ASX: SDV) reported record earnings for its Water Solutions segment in the second half of fiscal 2026, offset by a setback in Energy Services following the loss of a major contract.
Water Solutions revenue increased 13% year-over-year to AUD 48.3 million, while underlying EBITDA reached a record AUD 4.2 million, up AUD 3.6 million from the prior year. Energy Services EBITDA totaled AUD 4.8 million for the half, though the division was impacted by the loss of the Premium xSlik contract. Second-half underlying EBITDA more than doubled to AUD 2.5 million from AUD 1.1 million in the first half.
The company ended the period with net cash of AUD 6.8 million and total available liquidity of AUD 13.8 million. Recurring revenue rose to 38% of total revenue from 30% a year earlier, while corporate costs declined by approximately AUD 1.6 million. Cost reductions totaled AUD 4 million across the year.
SciDev maintained its Rum Jungle contract valued at AUD 19.5 million and expects to add about AUD 2 million in annual recurring revenue from a Newmont Boddington contract starting in fiscal 2027. The company also highlighted a AUD 2.2 billion Australian Water Solutions market opportunity across priority sectors, forecast to exceed AUD 6 billion by 2040.
Management outlined three priorities for fiscal 2027: deepening ties with tier 1 mining customers, building a position in the Australian data center market, and stabilizing Energy Services through partnerships and targeted product development. SciDev exited direct operations in the U.S. and U.K. Water Technology business, shifting to a channel partner model to eliminate ongoing losses.
The company entered the data center market within the past six months and has secured two contracts, including early-stage consulting on a major project and an embedded engineer model. SciDev did not provide formal revenue or earnings guidance for fiscal 2027, opting instead for quarterly updates via results and news releases.
SciDev’s shares were quoted at AUD 0.148, down 2% from the previous close, with a 52-week range of AUD 0.086 to AUD 0.51. The company reported a P/E ratio of 6.46 and a current ratio of 5.12.
