SciDev Limited (ASX:SDV), a company delivering chemistry and water treatment technology with end-to-end support from specialist scientists and engineers, today announced its financial results for the first half of FY26. The results reflect a period of challenges, but the company has outlined a clear plan for recovery and growth in the second half. Revenue for the half year was $47.9 million, down from $49.9 million in the prior corresponding period. Underlying EBITDA was $1.1 million, compared to $3.4 million in the first half of FY25.
The company noted that the results were primarily impacted by a frac schedule change at a key US customer, which reduced xSlik® product volumes, and rising costs in the international Water Technologies business. SciDev is responding by shifting to a lower-cost channel partner strategy in international Water Technologies, expected to reduce costs by nearly $3 million per annum. The company also broadened its revenue base in Energy Services, increasing the number of clients buying CatChek® product by 75% year-over-year.
Despite the challenges, SciDev reported record revenues in its Process Chemistry business and a return to profitability in its domestic Water Technologies business. The company is focusing on growing its recurring revenue base from stable business lines, including long-term Process Chemistry contracts, O&M contracts, and sales from its proprietary CatChek® product, which now accounts for over half of total revenue.
Looking ahead, SciDev expects stronger revenues and higher EBITDA margins in the second half of FY26, supported by cost reduction initiatives. FY26 revenue guidance has been revised to $100 million – $110 million. The company is focused on R&D for advanced specialty chemicals, cross-selling Water Technologies services, and driving higher recurring revenue through long-term MSAs and expanding O&M contracts.
