X2M Connect Accelerates Water Digitisation with $0.54M South Korea Contracts
X2M Connect has secured over half a million Australian dollars in new and repeat water digitisation contracts in South Korea, driving strong early revenue growth in FY26. These deals expand the company’s footprint across thousands of households and highlight growing government adoption of IoT solutions.
- Contracts worth approximately A$0.54 million secured for remote water metering
- Coverage includes over 4,500 households across five South Korean municipalities
- Repeat orders and new customer acquisition demonstrate expanding market penetration
- Total addressable market exceeds 400,000 devices and $50 million in upfront revenues
- First quarter FY26 revenue up 25% year-on-year, surpassing full FY25 revenue
Strong Start to FY26 with New and Repeat Orders
Australian IoT specialist X2M Connect Limited (ASX, X2M) has announced a significant boost to its water digitisation business in South Korea, securing contracts valued at approximately A$0.54 million. These agreements cover remote water meter monitoring for 4,543 households, with deployments scheduled for completion between December 2025 and March 2026.
The contracts include a new customer, the city of Cheongju, which has ordered remote metering solutions for 900 households. This marks a strategic expansion into a market with a total addressable value estimated at $11 million for Cheongju alone. Alongside this, X2M has received repeat orders from established municipal clients including Jeonju, Yangsan, Paju, and Changnyeong county, underscoring the company’s growing footprint and customer trust in its technology.
Expanding Market and Revenue Momentum
The combined total addressable market across these five municipalities exceeds 465,000 households, representing a potential revenue opportunity of around $56 million. This sizable market underpins X2M’s ongoing strategy to convert traditional mechanical water meters to digital, remotely monitored devices, which offer enhanced efficiency and data insights.
Financially, the contracts secured so far already surpass the company’s full-year revenue for FY25. X2M’s CEO, Mohan Jesudason, highlighted the company’s strong start to the financial year, with first quarter revenue up 25% compared to the same period last year. This growth is driven by both repeat business and the acquisition of new government customers, reinforcing X2M’s position as a trusted IoT provider in the utilities sector.
Strategic Focus and Regional Expansion
X2M’s technology connects utility meters and sensors to the internet, enabling real-time data collection and remote control. This capability not only improves operational productivity and cost savings but also lays the groundwork for advanced applications such as artificial intelligence and machine learning.
While South Korea remains a key market, X2M is actively expanding across the Asia-Pacific region, with subsidiaries in Japan, Taiwan, and China, and recent licensing activity in the Middle East. The company’s focus on enterprise and government clients within the utility sector positions it well to capitalize on the growing demand for smart infrastructure solutions.
Looking ahead, X2M aims to continue scaling its deployments and deepen penetration within its existing customer base, leveraging its proven technology platform and expanding addressable market.
Bottom Line?
X2M’s early FY26 contract wins signal robust growth potential as it deepens government partnerships and scales water digitisation across Asia-Pacific.
Questions in the middle?
- How will X2M manage scaling deployments to meet the large addressable market in South Korea?
- What margin impact can investors expect from these new contracts and repeat orders?
- How might X2M’s expansion into the Middle East and other regions influence future revenue streams?
