Can Hansen Sustain Growth Amid Rising Costs and Market Uncertainty?
Hansen Technologies reported robust FY25 results, driven by strong growth in its Energy & Utilities and Communications & Media sectors, highlighted by a major $50 million contract with VMO2. The company’s disciplined cost management and strategic investments in AI and acquisitions underpin its optimistic outlook for FY26.
- 11.2% revenue growth to $392.5 million in FY25
- Underlying EBITDA up 20.9%, reaching $111.7 million
- Secured a $50 million five-year deal with VMO2
- Reduced net debt to $17.4 million, now net cash positive
- Invested $34.5 million in R&D, including AI capabilities
Strong Growth Amid Sector Transformation
Hansen Technologies has delivered a compelling FY25 performance, showcasing resilience and strategic agility in a rapidly evolving market. The company’s revenue climbed 11.2% to $392.5 million, buoyed by robust demand in its core verticals – Energy & Utilities and Communications & Media. These sectors are undergoing significant transformation, driven by decarbonisation, digitalisation, and the global rollout of 5G, trends that Hansen is well-positioned to capitalise on with its scalable software platforms.
Communications & Media led the charge with 15% revenue growth, reflecting strong appetite for digital transformation solutions as providers modernise legacy systems. Meanwhile, Energy & Utilities grew 8.3%, supported by the integration of powercloud and ongoing investments in smart infrastructure and renewable energy technologies.
Operational Efficiency and Strategic Wins
Underlying EBITDA surged 20.9% to $111.7 million, with margins improving to 28.5%, underscoring Hansen’s disciplined cost management and operational efficiencies. The company’s CEO, Andrew Hansen, highlighted a $31 million cost reduction at powercloud as a key driver of profitability. Notably, Hansen secured a transformative $50 million five-year contract with VMO2, a joint venture between Telefónica and Liberty Global, marking a significant expansion in its Communications & Media footprint.
Additional contract wins include a $5.5 million agreement with Vattenfall in Finland and a strategic deal with a major US renewable energy portfolio valued at $16 million. These agreements not only expand Hansen’s global reach but also reinforce its recurring revenue base, which is critical for long-term stability.
Innovation and Sustainability at the Forefront
Hansen invested $34.5 million in research and development, focusing on cloud-native billing platforms and AI-powered tools that enhance customer engagement and operational efficiency. The company’s strategic acquisitions, including CONUTI software assets in Germany and an investment in North American AI firm Dial AI, signal a commitment to deepening product capabilities and scaling in key markets.
On the sustainability front, Hansen maintained carbon neutrality in Australia for the fourth consecutive year and achieved a 40% reduction in emissions since FY22, earning recognition from EcoVadis and MSCI. This progress aligns with the company’s broader ESG ambitions and positions it favorably among global technology providers.
Outlook and Market Positioning
Entering FY26, Hansen is optimistic, targeting 5–7% organic revenue growth and an underlying EBITDA margin above 30%. The company’s low leverage ratio and net cash position provide flexibility for further strategic investments and potential acquisitions. With ongoing sector tailwinds and a clear focus on AI integration and global expansion, Hansen aims to sustain its growth trajectory and deliver long-term value to shareholders.
Bottom Line?
Hansen’s FY25 momentum sets the stage for a pivotal year ahead as it leverages innovation and strategic deals to navigate evolving industry landscapes.
Questions in the middle?
- How will Hansen’s AI investments translate into tangible revenue growth in FY26?
- What impact will the $50 million VMO2 contract have on Hansen’s market share in Communications & Media?
- Which new markets or adjacent sectors might Hansen target next through M&A?
