SciDev Limited (ASX:SDV) Reports Q3 FY25 Financial Results
Financial Performance
SciDev Limited reported a revenue of $26.3 million for Q3 FY25, a 10% increase from Q2 FY25. The gross profit margin stood at 29%, and EBITDA surged by 200% to $2.1 million.
Strategic Delivery
The company expanded its market share in the US Oil & Gas sector, particularly with E&P operators in the Permian Basin, reducing customer concentration. SciDev advanced key mining opportunities and secured a long-term trial with a global gold producer in Australia. Additionally, the company secured its first PFAS contract in the US to treat investigation-derived waste at Department of Defence installations. Domestically, SciDev is active across multiple projects, including constructing a $5.6 million water treatment facility on a major infrastructure project in NSW. Board changes have been made to support strategic growth.
Outlook
SciDev expects growing market demand for its technologies, particularly in Water and Mining sectors. The business development pipeline remains strong across all units, and demand for proprietary chemistry continues to support improved margins. However, client-driven delays in Water and Mining businesses may shift some revenue into FY26.
Executive Comments
CEO Seán Halpin stated, “We’ve had a reasonably strong quarter despite challenging market environments. Operationally, we’ve expanded our water tech footprint in the US, securing a breakthrough, important first contract for PFAS remediation on multiple Department of Defence installations. This positions us to take advantage of the rapidly growing market for sustainable water treatment solutions. While in the US, drilling and completion activities remain volatile given recent movements in commodity prices, and we expect these market conditions to persist through the remainder of FY25. Notwithstanding, the demand for our propriety chemistry remains strong regardless of commodity prices, with our Energy Services business delivering new work wins and growth in market share. This progress demonstrates our ability to grow despite challenging market conditions.”
“The volatility and turbulent market conditions we’re seeing may see the timing of some revenues shift into early FY26, due to customer-led schedule changes and extended delivery windows across each of our business units. These impacts do not reflect any change in demand or scope, and we remain confident in the underlying fundamentals of the business.”
“As announced during the quarter, the ASX have lifted the requirement for SciDev to report on a quarterly basis. We will continue to keep the market informed of key developments and meet our disclosure requirements while providing detailed updates at the half year, full year and our AGM.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended SciDev. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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