Australia’s The Environmental Group Ltd. reported flat revenue of AUD 112 million for the half-year ended June 30, 2026, meeting revised guidance as shares fell 2.2% to AUD 0.091 on Tuesday.
EBITDA totaled AUD 8.7 million, unchanged from the prior year, while recurring revenue rose to AUD 61.9 million, representing more than 55% of total sales. Operating cash flow improved to AUD 2.3 million, but the group recorded AUD 10.8 million in one-off charges, including a AUD 5.7 million impairment of the Airtight business and AUD 2.4 million in ERP implementation costs.
EGL Energy, the group’s boiler services division, generated AUD 64.5 million in revenue, up 20% year-on-year, driven by growth in service revenue to AUD 47 million. Gross profit rose by AUD 3.4 million to AUD 21%, though EBITDA was slightly lower due to fuel price volatility and ERP-related invoicing issues. The division operates 133 vehicles covering 22,000–23,000 kilometers daily.
EGL Waste Services, focused on PFAS treatment, reported AUD 5 million in revenue after processing over 5 million liters of contaminated water. The division’s patented technology is now protected across Australia, the U.S., and Europe, with four plants expected to be operational by March 2027. EGL Baltec, however, faced revenue shortfalls of AUD 7–8 million due to Middle East conflicts disrupting projects in Iraq and Uzbekistan, compounded by European parts delays from Suez Canal and Strait of Hormuz closures.
Safety performance improved, with 419,000 hours worked and only one minor lost-time injury recorded. CEO Jason Dixon acknowledged a challenging year but noted the business had grown from AUD 40 million to AUD 112 million in revenue. CFO Gareth Nicholls highlighted the rising share of recurring revenue as a stabilizing factor for future earnings.
