• EBITDA margin improved despite lower revenues
• Maintenance segment profitability increased with strong customer demand
• Rental segment impacted by nickel and lithium downturn, but outlook improving

Babylon Pump and Power Limited reported its financial results for the six months ended 31 December 2024. The company experienced a solid improvement in EBITDA margin to start FY25 as well as growth in net profit compared to the corresponding previous reporting period. Weakness in the nickel and lithium markets led to lower revenues, but operational enhancements increased profitability and positioned Babylon for continued profit growth in the second half, together with higher forecast revenues. In the Maintenance segment, operational efficiencies drove margin growth and increased EBITDA despite lower revenues in the first half. The company recently secured an extension of its repair services contract with Rio Tinto out to mid-2027 and has secured multiple engine rebuild orders for a large contract miner in Mackay, which will underpin a high level of activity in the second half.The Rental segment experienced lower revenues largely as a result of the recent downturn in the nickel and lithium sectors. However, recent demand for rental services is strong in other minerals sectors and Babylon has been progressing a number of opportunities to redeploy equipment to new mining projects. The outlook in the rental segment is a return to good utilization of rental assets as well as high demand for Babylon's niche test pumping services.The group remains alert for potential acquisitions to build rental scale and expand capabilities in the mining services sector.

Babylon expects continued profit growth in the second half of FY25, with higher forecast revenues across both the Maintenance and Rental segments.

The outlook in the Rental segment is a return to good utilization of rental assets as well as high demand for Babylon's niche test pumping services. The company is focused on growing specialty rental capabilities, with the introduction of hybrid power units and sprayerless evaporators to support clients' emission reduction goals.