Global warming, ageing infrastructure and rising insurance claims are accelerating the need for smarter water management. For property owners, insurers and municipalities alike, this means moving from reactive repairs toward preventative monitoring and rapid response – a structural shift that is creating an abundance of opportunities for technology-enabled service providers like Water Intelligence .
Here the company is a ‘one stop shop’ for leak detection, repair and preventative maintenance solutions, operating across the US (re American Leak Detection, ALD), UK, Ireland, Canada & Australia.
Indeed in today’s positive FY’25 trading update, revenues, EBITDA and adjusted PBT climbed 9%, 15% and 9% respectively to $90.4m, $16.5m and $9.2m - with EBITDA margins similarly rising to a healthy 18% (vs 17% LY) and net debt closing the period at $19.3m, representing a comfortable 1.2x EBITDA.
Importantly too, the group has already begun rolling out StreamLabs wireless monitoring devices, integrating IoT data into its Salesforce CRM platform alongside laying the foundations for AI-driven analytics and predictive diagnostics. Perfectly complementing WATR’s best-in-class minimally invasive detection services and enabling ALD to be a “first responder” when leaks are detected.
But that’s not all.
Earlier this month, Water Intelligence, also signed a strategic agreement with Bluebot to further expand its product suite, allowing the group to resell & install smart water monitoring devices across all pipe sizes & customer segments. In turn deepening its IoT-enabled smart-water platform and further accelerating organic growth. Meaning all the pieces are now in place to achieve “exponential sales growth” by the end of 2026 and beyond. As evidenced by this morning’s news of additional contract wins with US national Insurers and a $1m deal in Ireland.
Executive Chairman Patrick DeSouza commenting: “We had a solid 2025 and have an exciting competitive strategy centered on preventive maintenance [for the future] - driven by strong market demand for Internet of Things and AI analytics to proactively minimize water loss and damage."
"The water infrastructure space remains fragmented, and we are differentiated with our scalable technology-enabled solutions platform - a One Stop Shop - that provides wireless monitoring devices, data securely stored in our cloud-based Salesforce platform and first responder capability driven by analytics. Our focus for 2026 and beyond will be delivering sales growth and margin improvements.”
Looking ahead, Canaccord Genuity Group Inc. have nudged up their FY26 revenue, EBITDA & adjusted EPS forecasts to $99.6m, $18.2m & 43 cents respectively. On this basis the stock at 265p, trade on fully diluted multiples of 9.3x FY26 P/E and 5.1x EV/EBITDA, with the broker lifting the price target to 515p/share (vs 500p B4) - implying >90% potential upside.
Disclosure: I own shares in Water Intelligence, who are also a Vox Markets client.