Atturra forecasts record earnings growth amid acquisitions

Atturra has announced robust expected earnings growth for the first half of the fiscal year 2025, following recent acquisitions and increased demand for its IT solutions.

The company anticipates unaudited revenue between AUD $140 million and AUD $142 million for the half-year ending 31 December 2024, marking a 26-28% rise from AUD $111.1 million during the same period last year. Expected underlying EBITDA is between AUD $13.2 million and AUD $13.8 million, showing a 19-24% increase from AUD $11.1 million. The company's unaudited earnings before interest and tax (EBIT) are projected between AUD $6.5 million and AUD $6.8 million, reflecting a growth of 23-28% from AUD $5.3 million.

The anticipated mid-year financial results represent a record for Atturra, aligning with internal targets and buoyed by strong performance across its service segments.

In the wake of its acquisitions of Plan B, Chrome Consulting, and ComActivity, Atturra has issued updated guidance for the full fiscal year 2025. The company expects revenue from AUD $305 million to AUD $320 million, alongside underlying EBITDA between AUD $31 million and AUD $34 million.

A significant factor contributing to the revised EBITDA guidance includes revenue recognition adjustments from a major project of a recently acquired company, originally expected to be completed in 6 months but now projected over 18 months. This has led to lower EBIT contributions for the fiscal year 2025 than initially anticipated. Additionally, Atturra is exposed to difficult-to-forecast risks from Federal Government work, potentially impacting EBIT by AUD $1.0 million to AUD $1.5 million.

Atturra is also bidding on three strategic multi-year contracts with significant long-term revenue potential. These bids are expected to incur costs exceeding AUD $1 million, with AUD $0.5 million to AUD $0.7 million to be spent in the second half of FY25. These potential revenues and costs were not previously included in forecasts.

Stephen Kowal, CEO of Atturra, expressed optimism about the company's performance and market offerings. "Atturra is off to a great start which is demonstrated by our revenue and Underlying EBITDA numbers, we have achieved our internal targets and are seeing strong demand for some of our new offerings. We have added the necessary volume to our managed services business in the first half, which supports our ambition to be Australia's leading sovereign end-to-end IT solutions provider. Although the business is tracking as expected, Atturra sees risks of up to $1.0 - 1.5m of EBIT in Federal Government, driven by ongoing cost cutting and the Federal election cycle. Atturra's outlook into FY26/27 is positive, reflected by 3 major customer pursuits currently in flight in which Atturra is investing over $1m over the next 8 months."

Atturra's hosted Cloud Platform for Boomi has witnessed notable demand, increasing from two clients as of its last financial update to eleven clients, indicating a strong reception for this new market offering.

The company has scheduled the release of its first-half fiscal year 2025 financial results for 26 February 2025, after which CEO Stephen Kowal will host a live webinar to provide further insights.