Half Year 2026 Cosol Ltd Earnings Call Transcript
Key Points
- COSOL Ltd (ASX:COS) reported a strong financial performance with a 17.8% increase in revenue to $57.8 million for the half year.
- The company achieved a 10% organic growth rate, driven by new customer acquisitions and managed services opportunities.
- COSOL Ltd's North American business secured 11 new IBM Maximo customers, indicating successful expansion into the US market.
- The acquisition of Two Stone has exceeded revenue synergy expectations, enhancing COSOL Ltd's digital and data capabilities.
- The company has grown its customer base significantly, with over 20 customers now contributing more than a million dollars annually, diversifying its revenue streams.
- The North American revenue has been declining half on half, attributed to the completion of a large SAP data transformation project without a subsequent replacement.
- Gross margin decreased by 1.2% to 31.5% due to investments in onboarding new managed services clients.
- Cash conversion was lower than expected in the first half, driven by timing issues around major project invoicing.
- The company's leverage is higher than its long-term target due to recent acquisitions, impacting its debt position.
- There were $400,000 in transformation expenses included in the underlying results, related to integration and expansion projects.
Thank you for standing by, and welcome to the Cosol Limited HY25 Result Investor call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.
(Operator Instructions)
I would now like to hand the conference over to Mr. Scott McGowan, Managing Director and Chief Executive Officer. Please go ahead.
Thank you, Harmony. Firstly, good morning, good evening, depending on where in the world you are today, I really appreciate, the opportunity to walk through Cosol H1, results.
For those who want to follow along with some of the conversation, that I and CFO Anthony Stokes and I will provide, I'd refer you to our investor presentation, which was lodged in the ASX this morning about half an hour ago.
I think first of all I just wanted to kind of reintroduce I guess COOL, we see Cosol as a really attractive investment opportunity. Some of the highlights that we want to bring to everyone's attention
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
