GTK - Gentrack

[BlackPeter]

I suspect GTK has an issue in the 'stickability' of its SAAS services/products, GTK are losing existing customers and missing out on new customers. They no longer dominate their target markets.

Interesting to compare with IKE who go out of their way to adapt their SAAS to clients needs as evidenced by their 'IKE University' which uses education to teach the use of their SAAS products and set/meet needed industry standards. IKE also benefits from this 'university' by listening to its 'students' to learn about new product development priorities.

As a result IKE is now imbedded in 8 of the 10 of the largest US companies in their utilities market and are gaining an average of 2 new utility customers per week.

Sure IKE still has a way to go to prove its commercial viability, but GTK could learn much from the 'stickability' of the IKE  SAAS model.

IKE SP up approximately  130% this YTD..... while GTK SP down approximately 48%.

Hard to say - IKE might be just in a different phase of the hype model ... but this is probably a discussion for some other thread ;-

[LaserEyeKiwi]

I suspect GTK has an issue in the 'stickability' of its SAAS services/products, GTK are losing existing customers and missing out on new customers. They no longer dominate their target markets.

...

Where do you get this from? There last earnings showed clear growth in Revenue/customers so new customers are definitely outpacing lost customers...? Has there been some sort of news since they last reaffirmed guidance in Ausgist that will reverse this trend? Back in July they did they say they lost out on a bid for a new future contract in Australia, is that one customer what you are referring to?

Anyway we will see next week when they report

[LaserEyeKiwi]

https://www.nzx.com/announcements/463185

Gentrack's g2 delivering global momentum

21/11/2025, 10:42 NZDT, GENERAL

Gentrack's multi-year investment in g2 delivering global momentum across energy and water

• New g2 win at UK's Pennon Water Services demonstrates strong water and waste-water capabilities
• Successful production deployment at Genesis for energy excellence
• Strong pipeline of interest across retailers in EMEA and APAC

Gentrack (NZX/ASX: GTK) today announced that its g2 platform has been selected to enhance operations and customer experience at Pennon Water Services, one of the UK's leading business water and wastewater retailers. This marks the first customer to adopt g2 in the UK, and the first g2 water implementation.

This announcement follows the recent g2 platform go-live at Genesis Energy and signals continued progress on Gentrack's g2 platform strategy, particularly in the consumer segment. Reinforcing g2's strong B2B capabilities is the planned Q1 2026 go live at ACEN Energy in the Philippines. With a strong pipeline across EMEA and APAC, Gentrack is also in advanced discussions with several retailers considering the adoption of the g2 platform.

These milestones come as a result of Gentrack's multi-year investment in g2, its next-generation billing and CRM platform for energy and water retailers.

Mike Carruthers, Chief Strategy Officer at Gentrack, said:
"Retailers seeking an integrated CRM and billing solution are finding g2 particularly compelling, thanks to its ability to be rapidly deployed out of the box while still enabling deep differentiation through low-code and no-code technologies. And for retailers operating legacy billing systems alongside a modern CRM, the benefits can be hard to realise - this is where g2 resonates strongly, resolving key integration and performance challenges. As a result, interest in the platform continues to grow, and our pipeline is expanding across Europe, Asia, Australia and New Zealand."

Pennon Water Services selects g2 to fuel digital and customer innovation

In the UK business water sector, where Gentrack already supports a significant share of the market, Pennon Water Services has selected g2 to drive greater agility across its operations and to offer more innovative services to more than 150,000 non-residential customer accounts.

Stephen Burke, Interim Managing Director of Pennon Water Services, said:
"Our priority is to provide excellent service and real value for our customers. To achieve this, we need a partner with a deep understanding of the B2B water and wastewater sector and the operational realities behind it. Gentrack's expertise and leadership in the market give us real confidence as we move forward with this transformation. We're pleased to work with a team that understands our business and shares our ambition for what outstanding service can look like in this market."

Gentrack's g2 live with modern, cloud-based operations for Genesis Energy

Gentrack and Genesis Energy (NZX/ASX: GNE) have also completed a major milestone, with Genesis customers now live on the g2 platform. This deployment forms a key part of Genesis' plan to deliver simpler, faster and more efficient customer and operational processes.

Ed Hyde, Chief Transformation & Technology Officer at Genesis Energy, said:
"Our new billing and CRM platform enables us to streamline retail operations, deliver better experiences for our customers and teams, and explore new opportunities in the years ahead. It's a key enabler of our Gen35 strategy, allowing us to simplify, automate and innovate across our retail business to support our customers through the energy transition."

The go-live is part of a multi-phase programme that will see more of Genesis' retail customer base transition to g2.

Gentrack's g2, built on AWS and integrated with Salesforce, is a composable, cloud-native billing and CRM platform designed to simplify operations, reduce cost-to-serve and enable rapid innovation at scale. Its modern architecture gives utilities the flexibility, speed and resilience needed to evolve customer offerings and experiences in highly competitive markets.

[LaserEyeKiwi]

24 November 2025

Market Announcement

Gentrack Group Limited (NZX/ASX: GTK), a leading provider of software solutions for utilities and airports, today released its results for the full-year to 30 September 2025.

Results Summary

• Revenue: $230.2m – up 8% on FY24 with the Group's recurring revenues 13% higher at $155.4m.
• EBITDA: $27.8m – up 18% on FY24 with all R&D and g2.0 investment costs expensed.
• Statutory NPAT: $20.9m profit – up 119% over FY24.
• Cash: $84.8m an increase of $18.1m over FY24.
• No Dividend payable.

Overview

In October 2025 we passed a key milestone for our Utilities business with Genesis Energy of New Zealand going live on the first full scope deployment of g2.0, our new cloud-based platform with Salesforce's CRM embedded. Existing customers and prospects are engaged in understanding the benefits and experiences that g2.0 can bring to their customers. Soon ACEN of the Philippines will go live with g2.0 marking our first Asian customer with a full end to end g2.0 stack. Furthermore, as announced we have signed our first g2.0 water customer in the UK with our recent win at Pennon Water Services. Supporting B2B and mass market across both energy and water is a strong differentiator for Gentrack.

Our airports division, Veovo, which operates in 25+ countries and over 150 airports, has had another strong year. Veovo has continued to grow with current customers and win new customers while delivering more projects than ever before. This has led to an underlying revenue growth of 30% (excluding hardware sales) which has translated into excellent growth in recurring revenues and EBITDA contribution.

Financial performance

For the Group, revenues increased 8% over the prior period to $230.2m and the Group's recurring revenue was 13% higher at $155.4m with both our divisions seeing strong recurring revenue growth in FY25.

In our Utilities business, total revenue grew by 7% to $193.4m. Our recurring revenues grew strongly, by 12% as wins and upgrades from prior periods flowed through into recurring revenue. This uplift was partially offset by lower non-recurring revenues (5% lower than in FY24), a reflection of the high level of project work in the prior year and the variable nature of such revenues. We continue to expect strong levels of non-recurring revenue going forward.

Revenues at Veovo grew by 15% to $36.8m. This was driven by new customer wins in the prior year in the UK and the Middle East and from upgrades in APAC. Growth includes both higher recurring revenue, (up 18% over FY24) alongside more project work (non-recurring revenue was 13% higher even though more variable hardware sales, sourced from our supplier network, were $2.6m lower in FY25 at $4.2m).

EBITDA at $27.8m was 18% higher than FY24. We are investing more into our Product including as mentioned landing our first deployment of g2.0 in Genesis Energy and all of this spend has been expensed in the year. We have also increased investment in sales to support the high levels of activity we are seeing in our current pipeline.

Our NPAT of $20.9m is an increase of 119% over the prior year. This increase in profit includes a $2.2m loss being our share (10%) of the losses of Amber (which we account for as an associate company in our financial statements). Also excluded from EBITDA but within our NPAT, is $3.2m of foreign exchange gains arising from the appreciation of some of the currencies, principally Sterling, used by subsidiary companies, within the Group. The Group booked a tax credit of $0.6m in FY25 (compared to a tax charge of $5.1m in FY24), reflecting the tax relief received from the vesting of share-based payments in the year. We will see the benefit of this in our FY26 cashflow with reduced levels of tax paid as a result.

We continue to generate cash and maintain a strong balance sheet. Our cash at the end of the year was $84.8m, a $18.1m increase over FY24.

Gentrack's Utilities and Veovo businesses both operate in high growth and consolidating markets. The Board believes that the best use of the company's capital is to continue to invest in growth. We have therefore decided not to pay a dividend. We will keep the use of capital under regular review.

Bringing value to our Energy and Water customers

In addition to global expansion, we continue to see new opportunities for more water and energy customer wins across our core markets. Utility Warehouse, one of the UK's fastest growing retailers and a new billing customer win in FY25, supply energy and telecommunications products to nearly two million meter points and are combining Gentrack's billing software with their multi service delivery platform.

Across FY25, we signed several, long term billing renewals including with Engie, Shell Energy, Wave, Castle Water, So Energy and Marble Power in the UK, Vector in New Zealand and Singapore's Pacific Light. We also continue to work with our customers to enable innovative solutions across our base including for battery services at Ecotricity with Amber and for heat cylinder optimization and grid stability with Mercury in New Zealand.

Strong track record of successful transformations for our customers

Gentrack's track record of successful transformations is a core strength of our business and critical for customers and potential customers when choosing a software vendor. This last year we migrated Power and Water Corporation which is one of the more complex transformations worldwide representing a retailer that supports networks, energy and water to service consumers, industry and SMEs in a single platform. Also in Australia, Amber and Vocus, both new customer wins in FY24, are now live on their Gentrack platforms. In the UK, just over 6 months after contracting with Utility Warehouse, we have migrated their first customers across to their new platform.

During FY25, Gentrack successfully enabled 10 UK energy retailers to pass critical milestones in the Market-Wide Half-Hourly Settlement (MHHS) programme. This programme is central to the UK's energy transition and by enabling the settlement of half-hourly data for all electricity customers, it will support a more flexible, efficient, and greener system. Industry-wide change on this scale is complex. Building on our global experience (including Australia's transition from 30-minute to 5-minute settlement) we are helping our customers move through this transformation with confidence. We will continue working with our customers in FY26 to complete their MHHS transitions.

Veovo's Leading Technology Capabilities

Veovo's growth story has continued in FY25, driven by airports investing in digital transformation. This has meant major expansion within our largest customers, a continued move to our latest platform with Gen8 upgrades and new customers in the US, Canada, Brazil and APAC. Of note, is the signing of our contract with NAV CANADA, the Air Navigation Service Provider (ANSP) for Canadian Air Traffic Control. This contract will see the Veovo Billing platform responsible for all charging for the world's second largest ANSP. This is a long-term contract that reinforces Veovo's market leading position in aeronautical billing combined with entry into a new market segment with global potential.

FY25 has seen Veovo deliver more projects than ever before. This has seen multiple airports go-live in Saudi Arabia and at the Manchester Airport Group with our Passenger Predictability platform; Edinburgh Airport live with our Airport Operations Platform and a continued rollout of our Gen8 platform in Australia, New Zealand and EMEA ensuring continued customer retention.

Our Next Generation Resource Management System, brings this module on to our modern SaaS platform, with greater intelligence and optimisation capability. This is now in deployment at two airports, with a wider global rollout planned in 2026. Our win with London Gatwick for Integrated Airport Control is driving forward our AI/ML prediction platform as we deliver the first phase of their Total Airport Management concept.

Veovo enters FY26 with a very strong backlog of projects and strong pipeline. We expect the story to continue.

Looking Forward

Both the utilities and airports industries are transforming at pace. They are dynamic markets in a state of change, and we are confident in our ability to lead these markets globally over time.

We would like to thank our customers and shareholders for their continued support, and the entire Gentrack team for their achievements and commitment to Gentrack's future.

Outlook

Consistent with managements' track record, we are pleased to continue to deliver on our guidance, which for FY25 was $230m revenue at 12% EBITDA margin.

Based on the scale and maturity of our pipeline we are confident that revenue growth will be higher in FY26 than in FY25, but it is too early to provide further guidance.

With strong and growing engagement across EMEA and APAC, our proven track record and the market potential, we remain confident of our mid-term guidance of growing revenue more than 15% CAGR and an EBITDA margin of 15-20% after expensing all development costs.

[LaserEyeKiwi]

Q&A:

Q: 10 opportunities mentioned?
Answer: Those 10 are all new customers in the pipeline

Q: Strong growth in FY27?
Answer: yup, based on announced deals.

Q: guidance question - how much of growth requires new contract wins from those 10 opportunities?
Answer: anticipated growth rate partly from growth in existing customer base, and some new wins.

Q: G2 now live, what does that mean for R&D cost going forward on financials?
Answer: We don't need to grow R&D expense as fast as revenue growth.

Q: Strong growth in FY27 - what does "Strong" mean?
Answer: moving back to 15% growth target

Q: of 10 prospects, timing of expected wins?
Answer: one reason why we holding back on firm guidance forecast, as timing is not certain, most will likely me mid-to-back half of year.

Q: What size deals warrant annoucements?
Answer: take on case by case basis

Q: When might you have confirmation that you have maintained Genesis B2B business?
Answer: focusing on B2C transition first, neither company focusing on B2B yet in our conversations.

Q: Constant currency growth rate in FY25 context for sales acceleration in FY26?
Answer: for FY26 we basing it on today's currency. currency benefit in FY25 was just one of several benefits that contributed to growth.

Q: G2 going live with Genesis - impact on pipeline?
Answer: Genesis being supportive, taking reference calls for potential Gentrack customers. G2 being live is obvious positive for achieving wins.

Q: preferred vendor vs shortlisted?
Answer: "preferred" means they have basically selected us, with little bit of follow-on work to confirm, "shortlist" usually means we are 1 of 2/3 vendors being considered.

Q: who are competitors normally in "shortlisted" situations?
Answer: The batch of competitors to go over the size of opportunities we dealing with is short. 4 or 5 competitors in the space, but just 1 or 2 we see frequently bidding as others have maybe dropped out of space.

Q: G2 milestone
Answer: longer we have new platform stacks running the better it is for wins, G2 going live a big moment.

Additional context answer:  a lot of potential customers have existing Salesforce installs, so that is very beneficial for us as new platform includes it.

Q: 30 million user points new business pipeline (10 opportunities) meaning?
Answer: The current 10 opportunities in the pipeline matches scale of our current utilities business.

Q: cash balance query?
Answer: potential acquisitions in veovo could accurate growth, have large capability in M&A team now, being cautious about M&A.

Q: Competitive pressure on pricing?
Answer: S&P and Oracle have affordable software but large ongoing costs, so we like to talk TCO (total cost of ownership) to emphasize our benefits. other competitors have low set up costs but high ongoing costs. a lot of the other new entrants usually do not make it too far through the bidding process. we would like to drive down our upfront cost, and move more to recurring revenue, but bearing in mind government owned customers prefer higher upfront cost (Capex) and lower ongoing cost.

Q:
Answer: we are convinced we have the best most functional fully featured stack on the planet. Other competitors have nice looking front end, but limited back end functionality - now that we have upgraded front end with G2 that pairs with our superior back end features we have the full best stack.

Q: further R&D
Answer: constantly looking to new features to invest in the platform

Q: salesforce relationship?
Answer: salesforce an inherent part of our stack, they are a global leader and are a good partner, fundamental to our deployment strategy. Having salesforce as a partner as they have teams in every geographic area where we have no presence/language capability

Q: Amber investment?
Answer: feel very good about investment - they are presenting next Monday would encourage people to follow that

(some discussion about "batch" I didn't quite get - but Gentrack is good at it)

Q: C&I churn?
Answer: taking important steps to move G2 into B2B space. refer to recent setback with one customer in Australia was not a trend.

Q: 15% rev growth possible in 2027?
Answer: short answer: yes.

[Stockgathering]

Gentrack is doing well and I decided to look at the annual report on this raining morning.

I got a surprise when reading the total remuneration of the CEO Gary Keith Miles (page 30, 2025 annual report)
Over the 2024 and 2025 financial years the combined financial benefit, salaries, long and short term incentives were around $21m, while the company had a NPAT of around $10m for 2024 and $21m for 2025 year. So combined for those 2 years a total profit of $31m.
This makes the CEO financial benefit of $21m look grossly out of proportion to me.
Maybe a CEO financial benefit could be capped at $1m plus a maximum of 15% of a companies profit.
What do others think?

 

[Dolcile]

    $21m seems way over the top. 

[LaserEyeKiwi]

Gentrack is doing well and I decided to look at the annual report on this raining morning.

I got a surprise when reading the total remuneration of the CEO Gary Keith Miles (page 30, 2025 annual report)
Over the 2024 and 2025 financial years the combined financial benefit, salaries, long and short term incentives were around $21m, while the company had a NPAT of around $10m for 2024 and $21m for 2025 year. So combined for those 2 years a total profit of $31m.
This makes the CEO financial benefit of $21m look grossly out of proportion to me.
Maybe a CEO financial benefit could be capped at $1m plus a maximum of 15% of a companies profit.
What do others think?

 

You have to look at the long term incentive plan to understand the outsized compensation. I voted against it, but he did hit the metrics that were in the plan (which included a massive rise in stock price) so this is what shareholders voted for.