EVT’s FY25 Normalised EBITDA Misses Analyst Consensus by Just 1.1%
EVT Limited has responded to ASX inquiries confirming its FY25 earnings were broadly in line with market forecasts, despite a notable post-results share price decline.
- No material difference between EVT’s FY25 earnings and market expectations
- Normalised EBITDA slightly below analyst consensus by 1.1%
- Statutory profit after tax rose 593.4%, adjusted increase of 5.3% excluding one-off tax charge
- EVT did not issue earnings guidance for FY25
- Company confirms compliance with ASX continuous disclosure rules
Context of the ASX Inquiry
Following the release of its full-year results for the 2025 financial year, EVT Limited faced scrutiny from the Australian Securities Exchange (ASX) due to a significant drop in its share price, from $17.14 to a low of $14.40. The ASX issued an Aware Letter requesting detailed explanations about whether EVT’s reported earnings deviated materially from market expectations and whether the company had complied with continuous disclosure obligations.
EVT’s Response and Earnings Analysis
EVT’s official response, signed by Company Secretary David Stone, clarified that the company did not publish earnings guidance for FY25. Instead, EVT relied on forecasts from seven sell-side analysts to gauge market expectations, focusing primarily on normalised EBITDA as the key performance metric. The consensus estimate for normalised EBITDA was $306.4 million, while EVT’s actual figure was $303.1 million, representing a minor 1.1% shortfall.
On a statutory basis, EVT reported a 1.9% increase in EBITDA and a remarkable 593.4% increase in profit after tax compared to the prior year. This surge was largely attributed to a one-off non-cash tax charge in the previous year related to New Zealand legislation changes. Adjusted for this anomaly, statutory net profit rose by a more modest 5.3%.
Market Expectations and Disclosure Compliance
EVT emphasized that its earnings results did not materially differ from market expectations based on analyst forecasts and prior year comparisons. The company stated it was aware throughout FY25 that its results would align with these expectations and confirmed that no prior announcements were necessary. EVT also affirmed full compliance with ASX Listing Rules, particularly continuous disclosure requirements under Listing Rule 3.1.
Regarding the post-results share price decline, EVT indicated it was unaware of any specific factors beyond the earnings release that could explain the trading activity. The company reiterated that its disclosures were timely and transparent, and no material surprises were present in the earnings information.
Implications for Investors and Market Sentiment
The clarification from EVT provides reassurance that the company’s financial performance met market expectations, which is critical for maintaining investor confidence. However, the share price reaction suggests that market sentiment may have been influenced by factors outside the disclosed earnings metrics, possibly reflecting broader sector or economic concerns. Analysts and investors will likely watch EVT’s upcoming communications closely for further insights.
Bottom Line?
EVT’s confirmation of earnings alignment with expectations settles regulatory questions but leaves market watchers curious about the share price reaction.
Questions in the middle?
- What underlying factors contributed to the sharp post-results share price decline despite earnings meeting expectations?
- How will EVT’s performance and disclosure practices influence investor confidence in the coming year?
- Will EVT provide earnings guidance or more detailed forecasts in future reporting periods to reduce market uncertainty?
