• Revenue declined 4% YoY, driven by Water Technologies in APAC and Energy Services, partially offset by record revenues for Process Chemistry
• Underlying EBITDA of $1.1m, down $2.3m YoY due to frac schedule disruption and international Water Technologies investment-phase costs
• Recurring revenue increased to 54% of total revenue, driven by growing O&M contracts, long-duration chemical contracts, and high CatChek sales

SciDev Ltd reported its 1HFY26 results, highlighting a challenging first half driven by frac schedule disruption in Energy Services and higher costs in Overseas Water Technologies. Revenue declined 4% YoY to $47.9m, while underlying EBITDA was $1.1m, down $2.3m YoY. The company's Energy Services division saw a 6% revenue decline and 49% drop in underlying EBITDA, primarily due to a single key customer changing their frac schedule, which materially impacted sales of the company's premium specialty friction reducer, xSlik. The international Water Technologies division also underperformed, with a $0.7m decline in underlying EBITDA as direct investment costs grew faster than revenues. However, the company's other divisions performed well, with Process Chemistry recording record revenues of $14.5m, up 16%, and a 58% increase in underlying EBITDA. The APAC Water Technologies business returned to profitability, with underlying EBITDA of $0.2m, up $0.8m YoY, reflecting a positive shift to higher-margin technology services and O&M contract revenues. Corporate costs were also down 19% year-on-year.The company has initiated a cost reduction program, which drove a $0.7m reduction in underlying SG&A YoY, with a total of $1.3m in annualised fixed costs removed. Net cash remained healthy at $4.4m as of 31 December 2025.Looking ahead, the company has revised its FY26 revenue guidance to $100m-$110m, reflecting a recently confirmed delay in sales opportunity for xSlik, delays to trial conversions in Process Chemistry, and a negative impact from a higher AUD:USD. However, the company expects 2H FY26 EBITDA to be higher than 2H FY25, supported by stronger revenues, higher EBITDA margins, and the recent cost reduction initiatives.

FY26 revenue guidance revised to $100m - $110m, reflecting a delay in xSlik sales, delays to trial conversions in Process Chemistry, and a negative impact from a higher AUD:USD. 2H FY26 EBITDA expected to be higher than 2H FY25, supported by stronger revenues, higher EBITDA margins, and recent cost reduction initiatives.

The company has a strong forecast 4Q FY26 exit rate and increasing confidence in its FY27 revenue pipeline, with potential for new customer acquisitions in Energy Services, conversion of field trials to long-term supply agreements in Process Chemistry, and replenishment of the D&C order book in Water Technologies, including the $19.5m Rum Jungle contract.