Highlights

  • Gentrack (ASX:GTK) contracted with Momentum Energy to support more than 200,000 meter points across Australia on g2.
  • H1 FY26 recurring revenue rose 12% to NZ$85.3 million, while group revenue was NZ$110.1 million.
  • FY26 guidance points to revenue of NZ$229 million to NZ$238 million and recurring revenue of around NZ$174 million.
  • The company held NZ$73.2 million in cash with no external debt at the end of March 2026.

Gentrack Group (ASX:GTK) Ltd provides software that helps energy and water utilities transform their customer and billing operations, and through its Veovo division supplies technology to airports.53, up 0.57% for the session.

Company Business

Gentrack operates two segments. The utilities business centres on g2, a cloud-based billing and customer platform built with partners Salesforce and AWS, which is used by energy retailers and water companies. The company says more than 60 energy and water companies rely on its technology. The Veovo segment supplies airport management, passenger flow and billing systems to airports and aviation organisations. Gentrack is listed on the NZX and ASX, has a financial year ending in September and reports in New Zealand dollars.

Recent Development

In late October 2026, Gentrack (ASX:GTK) announced that Momentum Energy had contracted with the company to support more than 200,000 residential and business meter points across Australia. Momentum selected Gentrack following a competitive evaluation and will use the g2 billing solution to simplify its technology landscape and reduce its cost to serve. Gentrack cited its delivery record in the Australian energy market, its regulatory compliance model and its integration with Salesforce. Chief executive Gary Miles said the ambitions and values of the two companies align closely.

Earlier in 2026, the company expanded through acquisitions. In mid-May it acquired Factor, a New Zealand-founded SaaS business that helps energy retailers price and manage commercial electricity contracts using machine learning. The deal had an enterprise value of NZ$24 million funded from existing cash, plus a potential earn-out of up to NZ$10 million tied to ARR growth. In late June, Gentrack completed the acquisition of Dubai Technology Partners, an airport technology and services provider with about 60 employees, which is being integrated into Veovo.

Other milestones reported with the half-year results included ACEN Energy in the Philippines going live on g2 in March 2026, marking the platform's first Asian go-live, and Pennon Water Services in the United Kingdom signing as the first g2 water customer. In the Veovo business, passenger flow technology was live at 15 airports in Saudi Arabia with 10 more in delivery, Melbourne and Newcastle airports went live on the airport management platform, and NavCanada was won, opening a segment beyond airports.

Financial Performance and Sector Context

For the six months to March 2026, Gentrack reported group revenue of NZ$110.1 million, compared with NZ$112.0 million a year earlier. Recurring revenue rose 12% to NZ$85.3 million, while non-recurring revenue fell 30% to NZ$24.9 million. EBITDA, excluding NZ$0.6 million of acquisition costs, was NZ$7.9 million, down from NZ$13.0 million. Statutory NPAT was NZ$5.1 million, supported by a NZ$3.9 million tax credit. Cash stood at NZ$73.2 million with no external debt, and no interim dividend was declared.

Within the segments, utilities recurring revenue rose 9% to NZ$73.3 million. Veovo revenue increased 3% to NZ$19.8 million, or 20% excluding hardware sales, with recurring revenue up 33% to NZ$12.0 million.

In early May 2026, the company lowered its FY26 guidance, now expecting revenue of NZ$229 million to NZ$238 million and EBITDA of NZ$13.5 million to NZ$20 million, excluding acquisition costs. Recurring revenue is expected to grow by more than 10% to around NZ$174 million. The board also signalled its intention to undertake an on-market share buyback of up to NZ$20 million, subject to market conditions. Gentrack (ASX:GTK) has reaffirmed its medium-term targets of more than 15% revenue CAGR and an EBITDA margin of 15% to 20%.

Risks to Consider

The reduction in FY26 guidance reflects lower non-recurring revenue, which can fluctuate with the timing of implementation projects. Large billing system migrations carry delivery risk, and delays could affect both revenue and customer relationships. EBITDA fell in the first half, and margins remain below the company's medium-term target range. Integration of the Factor and Dubai Technology Partners acquisitions may require management attention and investment. Results reported in New Zealand dollars can also be affected by currency movements across Gentrack's international operations.

What to Watch Next

Market observers tracking Gentrack (ASX:GTK) may focus on the following:

- FY26 full-year results, expected after the financial year ended in September, against revenue and EBITDA guidance.

- Any FY27 guidance, which had not been provided at the half-year.

- Implementation progress for Momentum Energy and Pennon Water Services.

- Activity under the proposed share buyback of up to NZ$20 million.

- Contribution from Factor and Dubai Technology Partners within the g2 and Veovo businesses.

Key Insights

Gentrack's 2026 announcements show recurring revenue growth alongside lower non-recurring income and reduced EBITDA in the first half. The Momentum Energy contract adds another Australian energy retailer to the g2 platform, while acquisitions have broadened both the utilities and airport divisions. The company retains a net cash balance with no external debt. The upcoming FY26 result will show how outcomes compare with the revised guidance issued in May.