• Sales revenue grew 4.3% to $249.4 million
• EBIT decreased 24% to $16.7 million, but underlying EBIT decreased only 8% to $20.6 million
• NPAT decreased 31% to $9.6 million

Waterco Ltd and its subsidiaries (the Group) reported a 4.3% increase in sales revenue to $249.4 million for the year ended 30 June 2025, but a 24% decrease in EBIT to $16.7 million and a 31% decrease in NPAT to $9.6 million. The lower EBIT was driven by one-off restructuring costs of $1.4 million and a weaker Australian dollar which impacted input costs and contributed to $2.5 million of foreign exchange translation losses. Excluding these items, the Group's underlying EBIT decreased by only 8% from $22.4 million to $20.6 million. The Swimart Division had its best result in terms of retail sales and purchases from Waterco, despite high interest rates and cost of living pressures. The Group also saw growth opportunities in Australia and overseas across its pump and filtration product ranges, as well as in the Middle East through the establishment of a subsidiary in the UAE. Improved synergies were realized through the further integration of the Davey Water Products business, and the Group is focused on managing costs to support underlying EBIT. The Group is confident of improved profitability in the future and expects to maintain the payout on dividends.

The Group expects to maintain the payout on dividends of 15 cents per share fully franked, representing a payout ratio of 55% of profits, for the financial year ending 30 June 2026.

The Group sees significant growth opportunities in Australia and overseas across its pump and filtration product ranges, as well as in the Middle East through the establishment of a subsidiary in the UAE. The Group is also focused on improving efficiencies in the integrated Waterco/Davey operations, including through the closure of warehouses and storage optimization, and bringing outsourced plastics moulding in-house into the Malaysian facilities. The Group is confident of improved profitability in the future.