EGL announces trading update for FY25

The Environmental Group (ASX:EGL) has announced a revision in its financial forecast for the fiscal year ending June 30, 2025. Initially projecting a 25% increase in Normalised EBITDA over FY24, EGL now anticipates a 10-15% rise due to cost overruns on a project in its Baltec IES unit. Despite these challenges, the company continues to report strong revenue across its business units.

EGL's outlook and strategic focus

The Environmental Group Limited (ASX:EGL) has adjusted its FY25 financial forecast due to specific project cost overruns in its Baltec IES business unit, particularly in a project involving gas turbine silencers and exhaust systems in Singapore. The company now expects a 10-15% increase in Normalised EBITDA instead of the initially projected 25%. This adjustment follows design variations and project management system errors that led to increased costs. Despite this setback, EGL's overall revenue performance remains strong. The company operates five business units focused on environmental protection through air quality improvement, carbon emission reduction, waste treatment enhancement, and water quality improvement. Moving forward, EGL is committed to preventing similar issues and continues its strategic focus on environmental solutions across its various sectors.

CEO commentary on financial adjustments

We are disappointed by the reduced profitability growth for FY25, but it is important to note the underlying strength of our business. We have completed a process review to prevent future errors.