• Revenue up 8.6% to $58.9M
• Underlying EBITDA up 25.9% to $4.9M
• Strong growth in EGL Energy and EGL Waste divisions

Environmental Group Ltd (EGL) has reported its 1H FY26 financial results, highlighting continued growth across the business. Revenue increased 8.6% to $58.9M, demonstrating the strength of the underlying business despite a period of business transition and ERP upgrades. Underlying EBITDA rose 25.9% to $4.9M, reinforcing the company's financial performance. EGL's balance sheet position remained strong, with net assets of $45.6M. The company's upgraded ERP system is expected to deliver improved data capabilities and operational efficiencies by consolidating three legacy systems. EGL also reported the relocation of multiple business units, which will generate long-term operational efficiencies. The EGL Energy division delivered an outstanding result, with revenue up 39.8% to $34.1M and EBITDA increasing 32.6% to $4.1M. EGL Waste also experienced significant growth, with revenue increasing to $2.3M from $0.6M in the prior comparable period. The company also developed a rapid on-site PFAS testing device capable of delivering results within one hour, providing customers with immediate insights into PFAS levels. Despite temporary inefficiencies from the ERP implementation and business relocations, EGL's overall financial performance demonstrates the strength of the underlying business and its growth initiatives.

EGL confirms its guidance of increased earnings of 15% to 20% on FY25 normalised EBITDA. The company expects its growth initiatives and recent investment in ERP implementation and operational consolidation to deliver improved earnings and profitability going forward.

EGL's outlook for FY26 is strong, with a good second half expected in line with the company's trading bias. Recurring revenue streams are expected to continue strengthening in FY26, and EGL management will seek to continue growing organically and via disciplined execution of strategic acquisitions.