Key Highlights

  • FY26 Group Revenue was AUD 32.0mn.
  • Rental revenue increased approximately 160% to around AUD 26mn.
  • Underlying Rental segment EBITDA reached approximately AUD 9.1mn.
  • Babylon generated AUD 7.1mn of positive Operating Cash Flow during FY26.

Babylon Pump & Power (ASX: BPP) is emerging from FY26 with a much simpler operating structure. The company exited its former maintenance businesses and is directing attention toward water-management rentals, where revenue grew sharply during the year. That shift gives Babylon a different Earnings base heading into FY27.

The Business Has Been Simplified

Babylon completed the divestment of Ausblast during FY26 and, after year end, completed the sale of its Primepower Queensland engine-overhaul business. Those transactions marked the company’s exit from the Maintenance segment and reduced the number of operating areas competing for management attention.

Rental Revenue Jumps

The Rental segment generated approximately AUD 26mn of revenue in FY26, an increase of about 160%. Underlying Rental segment EBITDA was approximately AUD 9.1mn. Babylon attributed the expanded scale partly to the integration of Blue Hire and Matrix with its existing rental operations.

Cash Generation Provides Another Measure

Group revenue was AUD 32.0mn and reported EBITDA was a loss of AUD 5.2mn. However, the company generated AUD 7.1mn of positive operating cash flow during FY26, driven largely by the Rental segment. Underlying Group EBITDA, excluding specified impacts, was AUD 4.9mn.

Water Management Becomes the Core

The strategic reset is centred on Babylon’s specialist water-management rental capability. The company said its focus is increasingly directed toward the higher-margin rental operations after the maintenance businesses were exited. FY27 results will show how the simplified structure performs on a full-year basis.