UK's Water Intelligence Plc H1 revenue rises on international expansion, franchise growth

Overview

• UK leak detection provider's H1 revenue rose 7% yr/yr to $48.2 mln

• Adjusted EBITDA grew 6%, while adjusted pretax profit rose 4%

• Statutory profit before tax fell 22% due to higher costs for new business launch

Outlook

• Company expects sales traction in 2H 2026 from scaling up preventive maintenance solutions

• Water Intelligence sees strong market demand for preventive maintenance and technology-enabled services

• Company to introduce new KPIs, such as devices sold, for 2027

Result Drivers

• INTERNATIONAL EXPANSION - Co said 40% growth in international corporate sales, led by its Irish acquisition and organic growth, contributed to overall revenue increase

• FRANCHISE-RELATED SALES - Franchise-related sales, including B2B insurance channel and equipment sales, rose 15% to $5.4 mln, supporting group revenue growth

• HIGHER COSTS - Margins declined due to higher materials costs and gasoline prices, especially related to the Iranian conflict

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Water Intelligence PLC is GBp515.00, about 50.4% above its September 29 closing price of GBp342.50

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)