Earnz reports narrower annual loss, positive adjusted EBITDA

(Sharecast News) - Earnz reported a narrowed annual loss and positive adjusted EBITDA for 2025 on Tuesday, as the energy services group benefited from acquisitions and contract wins under its buy-and-build strategy.

The AIM-traded company, which is focused on energy efficiency and decarbonisation services, said revenue rose to £11.8m for the year ended 31 December, from £2.6m in 2024, reflecting the full-year contribution from the acquisitions of Cosgrove & Drew and South West Heating Services in September 2024.

EBITDA was £0.1m, compared with a £1.0m loss a year earlier, despite a significant increase in central support costs to support growth.

Loss before tax narrowed to £1.7m from £3.6m.

Net debt stood at £1.2m at year end, compared with net cash of £0.3m a year earlier.

Excluding IFRS 16 lease liabilities, net debt was £0.7m, compared with net cash of £0.6m in 2024.

Earnz said it had reached a pivotal stage in its development, with the first phase of its buy-and-build strategy creating a platform for growth.

During the year, the group acquired A&D Carbon Solutions, which has been integrated into the business and provided the platform for two new start-ups, Warm Low Living and National Retrofit Solutions.

The company also secured significant contracts with Equans during 2025.

After the year end, it announced further contract wins with Fortem, working on behalf of Sanctuary Housing, in February and May 2026.

The board was strengthened during the year with the appointment of Peter Smith as chief executive.

After the period ended, Earnz also acquired Zero Carbon Group, expanding its scale and activities in the north of England.

The company said it continued to develop an active list of acquisition targets across the decarbonisation sector, although capital restrictions had meant it had been highly selective so far.

With a profitable platform now established, the board said it was considering more significant acquisition opportunities to enhance its service offering and provide a more stable base.

Earnz said momentum had continued into 2026, with further contract wins announced in the first quarter and a strong pipeline of opportunities across the group.

The board said it remained confident in the outlook for the 2026 financial year.

"I am delighted with the progress to date. I would like to thank the whole Earnz team across the group for their hard work during the year," said chief executive Peter Smith.

"The business is well placed to benefit from the opportunities that lie ahead."

At 1012 BST, shares in Earnz were down 4.71% at 4.05p.

Reporting by Josh White for Sharecast.com.

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