• Q4 FY25 saw revenue improvement, new contracts secured, and balance sheet strengthening
• New contracts worth $5.5 million secured in South Korea for remote water metering and smart city initiatives
• Strategic partnership with Dicode delivered second smart gas meter contract in UAE

X2M Connect Limited (ASX:X2M) reported a positive Q4 FY25, with revenue from continuing operations of $1.7 million, down 17% on the previous corresponding period but a significant improvement relative to the previous three quarters. The company secured new contracts in South Korea valued at approximately A$5.5 million, scheduled for delivery before December 2025, comprising remote water metering contracts and a A$3 million contract with the City of Seoul for a major public safety initiative. X2M also strengthened its Middle Eastern footprint through its strategic partner Dicode Smart Connect Electronics, which secured a contract to install smart gas meters across 10,000 UAE residential apartments. Late in the third quarter, X2M launched 'Hive.AI by X2M', a world-leading AI solution for renewable energy companies. The company's enterprise and government client base continued to rise, reaching 84 at 30 June 2025, up 12% on the previous corresponding period. X2M secured a $1.95 million placement during the quarter and launched a further Placement and Entitlement Offer post balance date to raise up to $4.9 million, which will substantially strengthen the company's balance sheet and enable a significant reduction in debt.

With funds raised from the Placement and Entitlement Offer substantially strengthening its balance sheet and enabling a significant reduction in debt, X2M is now in a stronger position to convert its robust pipeline and accelerate growth across key markets in Asia and the Middle East. This enhanced financial position supports the next phase of the company's strategic expansion, building on the momentum achieved in recent months.