• Revenue up 16.1% to $54.2M
• EBITDA down 13.4% to $3.7M due to one-off $1.2M project cost overrun
• EBIT down 27.8% to $2.3M, Profit after tax down 30.5% to $1.4M
• Strong performance in Baltec IES and EGL Energy, challenges in EGL Clean Air

The Environmental Group Limited (EGL) reported its financial results for the half-year ended 31 December 2024. Revenue increased by 16.1% to $54.2M, however Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined by 13.4% to $3.7M and Earnings Before Interest and Tax (EBIT) decreased by 27.8% to $2.3M. Profit after tax attributable to the equity holders of EGL was down 30.5% to $1.4M. As announced in a previous trading update, one project within EGL's Baltec IES business unit incurred a material cost overrun of approximately $1.2M, which impacted the group's financial performance. Excluding this one-off item, management estimates EBITDA would have been up approximately 12.6% on the prior comparable period.EGL's Baltec IES business unit experienced strong growth, with revenue up 84.5% to $19.8M and EBITDA increasing by 14.9% to $1.9M. The company's EGL Energy division also performed well, with revenue up 34% to $24.4M and EBITDA increasing by 15.1% to $3.1M. In contrast, EGL Clean Air faced challenging market conditions, with revenue down 45% to $9.6M and EBITDA decreasing by 54.8% to $0.8M due to a significant decline in the lithium sector. The company's strategic acquisition of Airtight Solutions in 2023 has helped to diversify the revenue base and mitigate the single sector risk.EGL's financial position remains strong, with net assets increasing by 3.7% to $42.5M and cash on hand of $8.0M, along with an undrawn $5.0M debt facility to fund further growth and acquisitions.The company expects increased earnings of 10 to 15% on FY2024 EBITDA in the full year FY2025, driven by the continued execution of its growth initiatives.

EGL forecasts increased earnings of 10 to 15% on FY2024 EBITDA for the full year FY2025.

The outlook for FY2025 is strong, with a very good second half expected as EGL's growth initiatives continue to build earnings. The company's pipeline of work in the gas turbine enhancement industry remains very strong, and it is well-positioned for further growth in the future.