Gentrack cuts 2026 revenue guidance, plans $20m share buyback

Shares in NZX-listed utilities software specialist Gentrack slumped after the company lowered its revenue guidance for 2026 and announced a share buyback.

By late morning, the stock was trading at $4.97 - down $1.06 or 17.58%.

The company said it now expects its 2026 financial year revenue to be between $229 million to $238m – lower than its previous guidance.

Gentrack’s revenue for the September 2025 year was $230.19m.

Recurring revenues in 2026 were expected to grow by more than 10% to around $174m, while non-recurring revenues would be lower than 2025, it said.

Gentrack’s half result, due on May 18, was expected to show revenue of $110m, of which $85m would be recurring.

“Based on our pipeline and the market opportunity in both Utilities & Veovo, we stand by our medium-term revenue target of more than 15% CAGR [compound annual growth rate],” the company said.

“We have taken the strategic decision to prioritise growth and global leadership over short term ebitda [earnings before interest, tax, depreciation and amortisation].

“We are continuing to invest in international expansion and product development.”

For 2026, Gentrack expects full-year ebitda to be between $13.5m and $20m and for first-half ebitda to be about $7.8m, all excluding acquisition costs.

“With strong recurring revenue growth we expect margins to improve to our medium-term target of 15% to 20% ebitda margin (after expensing all development costs),” it said.

Subject to continued market conditions, Gentrack said it would undertake an on-market share buyback following the release of its first-half result.

In this case, Gentrack would acquire shares up to a value of $20m but in any event not exceeding 5% of Gentrack’s shares on issue, over a period of up to 12 months.

Chairman Andy Green said the board’s current view was that a share buyback would be appropriate and accretive to shareholders.

Gentrack’s shares last traded on the NZX at $6.03, having lost about half their value over the last 12 months.

Gentrack, a medium-sized company with a market cap of $678m, is headed by Gary Miles, who topped the latest Herald CEO Pay Survey with total earnings of $17.3m.

Last month, the company said it had entered into a sale and purchase agreement to acquire Dubai Technology Partners (DTP), an airport technology and services provider based in Dubai, United Arab Emirates, for US$10m ($17m).

“Depending on the final completion date, we expect the acquisition of DTP to add $3.5m of revenue to Gentrack’s Veovo business across the approximate four months remaining in 2026,” the company said last month.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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