• Rental segment delivering record revenue and on track to exceed full year budget
• Net operating cash inflow of $0.9m (+215% YoY) with $9.5m in cash receipts (+70% YoY)
• Secured extension of key pump hire contract with Talison Lithium (~$3m p.a.)

Babylon Pump & Power Limited (ASX: BPP) reported its quarterly update and cash flow report for the period ended 31 March 2026 (Q3 FY26). The quarter reflects continued strong demand in the company's rental segment, with improving utilisation and earnings quality as Babylon executes its strategy to build a scaled, high-margin water management platform. The company recorded a net operating cash inflow of $0.9 million for the March quarter (+215% from Q3 FY25), driven predominantly by increased activity in the high margin rental segment as receipts from customers reached $9.5 million (+70% from Q3 FY25). Babylon was also awarded 2 x 2-year option extensions of its contract for Mine Dewatering Services with Talison Lithium Pty Ltd, which has historically delivered ~$3.0m in annual rental revenue. The company continues to see a strong pipeline of opportunities, with increasing enquiry levels from both existing and new clients, underpinning confidence in continued growth in utilisation and earnings. Babylon's strategic focus on water management, including the divestment of non-core operations, is expected to support improved earnings predictability, stronger margins and increased returns on capital over time.

Babylon expects to deliver full year FY26 revenue of $27-28m and underlying EBIT of approximately $3.0m.

Babylon enters Q4 FY26 with strong momentum in its Rental business, supported by improving utilisation, a growing pipeline of opportunities and favourable underlying market conditions in water management. Key areas of focus include expanding the Rental fleet, maximising fleet utilisation and operational synergies, managing maintenance segment costs, and maintaining financial discipline.