• Net operating cash inflow of $1.6m with $8.7m in cash receipts
• Rental segment performing in line with expectations with multiple new contract wins
• Matrix Hydro Services and Blue Hire performing to expectations following completion of acquisitions

Babylon Pump & Power Limited (ASX: BPP) has reported a net operating cash inflow of $1.6m for the quarter ended 30 September 2025 (Q1 FY26), with receipts from customers of $8.7 million. This reflects a partial period of contribution from the recently acquired Matrix Hydro Services and Blue Hire businesses, which completed on 1 August 2025. Investing outflows of $18.6m primarily relate to the two acquisitions settled during the period, with corresponding financing cash inflows of $16.3m reflecting the drawdown of a new debt facility to support the acquisitions and refinance legacy debt. Cash at bank on 30 September 2025 was $2.3m. The company's expanding rental operations, including contributions from Matrix and Blue Hire, have increased the segment's EBITDA contribution 87% versus the previous quarter. Test pumping activity remained steady, and Babylon was awarded and commenced a new dewatering contract at the Cockatoo Island iron ore mine. The HIGRA pump distribution partnership also continued to gain traction. As anticipated, maintenance activity remained heavily subdued in Q1 as clients across the iron ore and coal sectors continued to defer spending on non-critical repairs. However, the company used the opportunity to clear internal repair backlogs and support clients with low-cost, quick-turnaround solutions. Babylon enters Q2 FY26 with momentum in its Rental business and the integration of Matrix and Blue Hire well advanced.

Babylon's key areas of focus include adding rental assets to the fleet to meet contract wins, maximising fleet utilisation and operational synergies across the combined group, capitalising on test pumping and dewatering contracts, continuing integration activities with a focus on preserving the culture of the successful businesses, maintaining cost discipline, and targeting profitable growth in Rental and Maintenance.