Image source: Shutterstock

Highlights

  • X2M secures AUD 1 million in new water metering contracts in South Korea, expanding total 4Q FY25 wins to over AUD 5.5 million.

  • Two new customers added, bringing total enterprise and government clients to 84.

  • X2M’s share price rose 16.7% to 2.1 cents on 26 June.

X2M Connect Limited (ASX:X2M) has announced the award of new contracts in South Korea valued at approximately AUD 1 million, marking a significant step in the company’s regional expansion strategy. The Australian Internet of Things (IoT) technology firm continues to gain momentum, building on recent wins to increase its footprint in the South Korean utility sector.

The new contracts, secured for the cities of Yongin and Gimcheon and the county of Gapyeong, involve the deployment of water metering and control solutions across 7,806 households. Notably, Yongin and Gapyeong represent new customers, pushing X2M’s total enterprise and government customer count to 84.

These additions also expand X2M’s addressable market in the region by a further 113,000 households, with an estimated AUD 581 million in potential upfront revenue and AUD 29 million in recurring annual revenue, based on current customer metrics.

Positive Finish to FY25

The contracts form part of a growing pipeline in the fourth quarter of FY25. Including previous deals — such as a $1.7 million contract announced in April and a $3 million public safety project revealed just days earlier — X2M has now secured over AUD 5.5 million in total contracts during 4Q FY25. These are all scheduled for delivery in the first half of FY26, providing a positive revenue trajectory heading into the new financial year.

X2M’s Chief Executive Officer Mohan Jesudason welcomed the latest wins, noting the continued traction in South Korea following a subdued period earlier in the year.

“These contract wins demonstrate the continued traction in South Korea and our ability to convert a significant pipeline into revenue,” Jesudason said. “We’re entering FY26 with strong momentum and a solid foundation for continued growth.”

The company highlighted that the South Korean municipal market is showing signs of recovery, with funding now available for the digitisation of water infrastructure.

Market Reaction and Future Outlook

Investors responded positively to the update, with X2M’s share price rising 16.7% to 2.1 cents per share in morning trade on 26 June 2025.

With more than 500,000 devices currently connected to its proprietary IoT platform, X2M continues to offer governments and utilities improved data collection, remote control, and operational efficiency. The company has also extended its reach into the Middle East and maintains active operations across Japan, South Korea, Taiwan, and China.