• Positive operating cashflow of $1.8M for Q2 FY25
• Strong margin expansion underpins H1 FY25 EBITDA of $3.0M and NPAT of $0.4M
• First orders of c$0.5M received through distribution deal with HIGRA Industrial

Babylon Pump & Power Limited (ASX: BPP) has presented a quarterly update and cash flow report for the period ended 31st December 2024. The company recorded cash receipts of $9.1M and positive operating cashflow of $1.8M for the quarter. Babylon has now recorded positive operating cashflow in eleven of the last twelve quarters and expects FY25 to be its fourth full year posting positive operational cashflow. The company delivered H1 FY25 EBITDA of $3.0M, which is in line with H1 FY24 despite setbacks in the nickel sector, and has delivered an increase in net profit after tax (NPAT) to $0.4M for the half year. This reflects EBITDA margin expansion of 350 basis points from H1 FY24 and represents continued progress toward consistent earnings growth. The company's rental business experienced a short-term setback due to the slowdown in the nickel market, but the team has responded with prudent management to maintain profitability and positive cash generation. Revenue is expected to improve in the second half of FY25 based on increased test pumping activity and redeployment of equipment to multiple new rental projects. Babylon also received first orders of c$0.5M during the quarter through its new distribution deal with HIGRA Industrial, which has brought opportunities in development with potential new clients across multiple sectors.

The company expects revenue to improve in the second half of FY25 based on increased test pumping activity and redeployment of equipment to multiple new rental projects.