Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Canaccord and Shaw and Partners reaffirmed Buy ratings on DUG with price targets of AUD 2.55 and AUD 3.20 respectively.

  • DUG secured a multi-year SaaS and HPCaaS agreement with PETRONAS worth a minimum USD 23.8 million.

  • FY25 results showed revenue of USD 62.6 million and EBITDA of USD 15.4 million, alongside a 42% uplift in the services order book to USD 52 million.

DUG Technology Ltd (ASX:DUG), a provider of high-performance computing (HPC), software and geoscientific services, has received continued analyst confidence, with Canaccord Genuity and Shaw and Partners both maintaining positive ratings on the company alongside updated price targets.

The ratings come as DUG advances its growth strategy, underpinned by new multi-year contract awards and positive momentum in its services order book, despite a year of mixed financial results.

Analyst Ratings

  • Canaccord Genuity reaffirmed a Buy rating on DUG with a price target of AUD 2.55.

  • Shaw and Partners also maintained a Buy rating, setting a higher price target of AUD 3.20.

Multi-Year Agreement with PETRONAS

On 2 September 2025, DUG signed a Software-as-a-Service (SaaS) and High-Performance Computing-as-a-Service (HPCaaS) letter of award with PETRONAS DIGITAL SDN BHD, a subsidiary of Malaysia’s national energy company PETRONAS.

The three-year agreement, with an option to extend by two years, carries a minimum total contract value of USD 23.8 million (AUD 36.0 million). Of this, USD 5.6 million will be payable to Norwegian technology firm Cegal, DUG’s delivery partner for managed services.

The project, which grants PETRONAS access to DUG’s processing and imaging toolkit—including its advanced elastic multi-parameter full waveform inversion (eMP-FWI) imaging—will be commissioned progressively through 2025 and fully operational by early 2026.

FY25 Financial Results

For the year ended 30 June 2025, DUG reported revenue of USD 62.6 million, down 4% from FY24. Services revenue decreased 5% to USD 51.9 million, while software revenue rose 13% to USD 8.3 million. HPCaaS revenue declined 29% to USD 2.4 million.

EBITDA came in at USD 15.4 million, representing a 25% margin, though this was 7% lower than FY24. A stronger second half performance delivered USD 10.2 million of EBITDA at a 30% margin.

The company posted a net loss after tax of USD 4.4 million, compared with a profit of USD 3.3 million the previous year. DUG ended FY25 with USD 16.4 million in cash, up 74% on June 2024, supported by a successful AUD 31.4 million capital raise in October 2024.

Growing Services Order Book

Despite headline revenue pressures, DUG’s services order book grew significantly, reaching USD 52 million at 30 June 2025, a 42% increase year-on-year. The uplift was driven by new project awards worth USD 45.7 million in the second half of FY25.

The company continues to position itself at the intersection of scientific computing and sustainable HPC, offering advanced software and immersion-cooled data centres that support energy efficiency alongside computational power.

Market Performance

On 3 September 2025, DUG shares traded at AUD 1.965, down 0.76% on the day, with trading volume of 249,580 shares.