Water Intelligence (LSE:WATR) delivered higher revenue and earnings in 2025 as strong international growth, expanding margins and continued investment in technology-supported services reinforced its position within the water infrastructure sector.
The company reported revenue of $90.4 million for the year, an increase of 9%, while adjusted EBITDA rose 15% to $16.5 million. Improved operating efficiency helped lift the adjusted EBITDA margin to 18.2%, and adjusted earnings per share increased 8%.
Management said the results reflect continued demand for leak detection and water management services alongside growing adoption of technology-enabled solutions.
International Expansion Accelerates
While the group’s core American Leak Detection business generated 4% growth during the year, the strongest performance came from international operations.
Water Intelligence International recorded revenue growth of 44%, benefiting from expansion across existing markets and increasing demand for specialist water infrastructure services.
The company ended the year with a strong balance sheet, reporting leverage of 1.17 times adjusted EBITDA, providing flexibility to continue investing in growth initiatives.
Building a Preventive Maintenance Business
A key strategic focus for the group is the development of preventive maintenance services designed to help customers identify and address water-related issues before costly damage occurs.
Management is testing new preventative maintenance offerings through the American Leak Detection network, supported by advances in connected devices, data analytics and artificial intelligence.
The company believes the combination of lower-cost Internet of Things (IoT) monitoring technology, AI-driven analysis and its Technology Enabled Solutions platform could transform how water infrastructure is managed by both residential and commercial customers.
Expanding Recurring Revenue Opportunities
Water Intelligence sees significant long-term potential in subscription-based maintenance services that provide continuous monitoring and early intervention capabilities.
The company believes this model can generate recurring revenues while strengthening relationships with key customer groups including insurers, property managers, commercial building owners and homeowners.
By shifting from reactive repair work toward ongoing monitoring and prevention, management aims to create a more predictable and scalable revenue base over time.
Disciplined Capital Allocation Continues
Alongside organic growth initiatives, Water Intelligence continues to pursue a disciplined capital allocation strategy focused on selective acquisitions and shareholder returns.
During the year, the company continued acquiring franchise operations and plumbing businesses that complement its existing network and service capabilities.
Water Intelligence also completed a $1.6 million share buyback programme and expanded its banking facilities with M&T Bank, increasing financial flexibility to support future growth opportunities.
Positioned to Capitalise on Water Infrastructure Demand
Management believes the company is well placed to benefit from growing investment in water infrastructure and increasing awareness of water conservation and asset management.
With an estimated $200 billion U.S. water infrastructure market presenting significant opportunities, Water Intelligence is seeking to combine technology, data analytics and field services to deliver more proactive and efficient water management solutions.
The company believes its integrated platform positions it to play an increasingly important role as customers adopt smarter approaches to monitoring and maintaining water systems.
More about Water Intelligence
Water Intelligence plc is a multinational provider of leak detection, water infrastructure monitoring and repair services. Through its American Leak Detection network and Water Intelligence International division, the company operates more than 150 locations across the United States and maintains a presence in the UK, Ireland, Canada and Australia. Its technology-enabled platform combines monitoring devices, proprietary detection tools, customer management systems and AI-driven analytics to support residential, commercial and municipal customers with both reactive and preventive water management solutions.
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