Water Intelligence reports strong third-quarter results

(Sharecast News) - Water Intelligence reported strong third-quarter results on Wednesday, with double-digit revenue and profit growth as operational efficiencies and its 'Dallas Template' restructuring continued to boost margins and accelerate earnings momentum.

Group revenue for the nine months ended 30 September rose 9.2% to $69.3m from $63.5m a year earlier, driven by expanding US and international corporate operations.

Adjusted EBITDA climbed 25% to $13.9m, while adjusted pre-tax profit increased 23% to $8.5m, lifting margins to 20% and 12.2% respectively.

Statutory EBITDA rose 14% to $12.7m, with statutory pre-tax profit up 4% to $6.5m.

Growth was led by an 8.2% rise in US corporate sales to $46.2m and a 49.4% jump in international corporate sales to $11m.

Franchise-related income declined as the company continued acquiring franchise operations into its corporate structure.

The AIM-traded water infrastructure group said its balance sheet remained "strong and under-levered", with $9.2m in cash, net total debt of $23.2m, and a net debt-to-adjusted-EBITDA ratio of 1.1 times.

Capital allocation during the quarter included new investment in wireless monitoring through its StreamLabs partnership, two franchise reacquisitions, and further share buybacks, taking treasury shares to 514,150.

"We had a strong third quarter in terms of both revenue and profits which builds upon the momentum from the second quarter," said executive chairman Dr Patrick DeSouza.

"Leadership at each of our two operating subsidiaries - American Leak Detection and Water Intelligence International - delivered outstanding results that are expected to continue in 2026.

"This is just the beginning, as product partnerships for the smart home, such as StreamLabs which we are now launching across the American Leak Detection network after six months of training, will supplement both our current established base of revenue and our outlook for 2026."

He added that with a robust balance sheet and improved efficiency under the Dallas Template, the company was well positioned to deploy capital to accelerate both organic and acquisition-led growth.

At Wednesday's close, shares in Water Intelligence were up 3.03% at 272p.

Reporting by Josh White for Sharecast.com.

Water Intel.