Record H1 2026 result marks strongest half-year in company history
In its financial report for the six months ended 30 June 2026 (H1 2026), De.mem Limited recorded the strongest half-year performance in its history, with growth achieved alongside a sharp lift in profitability.
The Australian-headquartered international water and waste water treatment company, with operations in Singapore and Germany, delivered record revenue of $17.6m (up 26% pcp), cash receipts of $20.0m (up 28% pcp), and adjusted EBITDA of $1,582k (up 185%), nearly tripling the prior corresponding period result.
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H1 2026 results: record numbers across every key metric
De.mem reported records across all key financial metrics for the period, a combination that reflects revenue growth achieved whilst increasing profitability.
Adjusted EBITDA reached $1,582k, up 185% on $556k in H1 2025. The company noted it generated roughly the same adjusted EBITDA in the first six months of 2026 as it did across the full CY 2025. Operating cash flow followed a similar trajectory, coming in at $928k for the half compared with $318k for the whole of CY 2025.
Gross margin held at a strong 41%, and the company ended the period with $4.3m in cash and term deposits.
| Metric | H1 2026 | H1 2025 | Change | Note |
|---|---|---|---|---|
| Revenue | $17.6m | $14.0m | +26% | Record half-year |
| Cash receipts | $20.0m | $15.7m | +28% | 29 consecutive quarters of growth |
| Adjusted EBITDA | $1,582k | $556k | +185% | ~Equal to full CY 2025 |
| Gross margin | 41% | — | — | Up from 18% in 2017 |
| Cash & term deposits | $4.3m | — | — | As at 30 June 2026 |
Adjusted EBITDA is defined as EBITDA adjusted to exclude one-off expenses such as business acquisition costs and share-based payments.
29 consecutive quarters of growth and a high-margin recurring model
The result extended a long growth track record. De.mem recorded 29 consecutive quarters of cash receipts growth versus prior corresponding periods, and has compounded cash receipts at approximately 24% per annum since 2019.
Underpinning that durability is a recurring revenue base representing approximately 90% of cash receipts, which the company said provides strong cash flow visibility. Gross margin progression tells a parallel story, rising from 18% in 2017 to 41% in H1 2026 as the business shifted toward higher-margin recurring segments.
De.mem’s full-year CY 2025 results marked the company’s first full calendar year of positive adjusted EBITDA, with gross margin reaching 43% by year-end, providing the profitability foundation that the H1 2026 period has now built upon.
Recurring revenue segments include:
- Build, Own, Operate and Operations & Maintenance contracts
- Regular maintenance work on water treatment equipment
- Membrane replacement sales into existing facilities
- Specialty chemicals sales through De.mem-Capic and other subsidiaries
- Sales of pumps and related maintenance services
- Sales of small equipment and consumables
- Domestic water treatment systems and membrane cartridge sales
This recurring revenue base provides strong cash flow visibility and supports the Company’s record CY 2026 outlook.
Operating engines: Western Australia, Germany and domestic filtration
Western Australian specialty chemicals business
De.mem’s Western Australian business contributed approximately 49% of group revenues in H1 2026, forming a strong, cash-generating core. The segment includes recently acquired Core Chemicals Pty Ltd alongside De.mem-Capic Pty Ltd and Auswater Systems Pty Ltd.
Core Chemicals, whose acquisition completed on 31 October 2025, supplies specialty chemicals for gold fragment extraction and recovery from the refining waste stream to Western Australian gold mining clients. The company has won new clients since the acquisition and is actively quoting additional prospects, demonstrating cross-selling across the enlarged customer base.
German subsidiary De.mem-Geutec GmbH
The German subsidiary De.mem-Geutec GmbH delivered record revenue of approximately $2.5m in H1 2026. The performance was driven by a robust services and chemicals business combined with the delivery of a waste water treatment equipment project awarded to De.mem in late CY 2025.
Domestic water filtration launch
De.mem continued the ongoing launch of domestic water treatment products built around its Graphene-Oxide enhanced hollow fibre membrane technology, which received American NSF product certification in 2024.
The global domestic water filtration market was estimated at US$12.1 billion in 2022 and is expected to grow by 10.5% per annum to US$26.7 billion by 2030, according to Grand View Research, with Asia-Pacific the largest regional market. During the half, the company received an initial Singapore order estimated to be worth approximately $100k per annum.
The Australian WaterMark certification process is in progress, with conclusion expected in CY 2026. Subject to successful finalisation, De.mem would be able to promote its domestic filtration products for drinking water applications in Australia.
Acquisition track record and the road to record CY 2026
De.mem’s growth has been supported by disciplined M&A. The company reported 70% average revenue growth across six acquisitions completed between 2019 and 2024, per its Investor Presentation lodged with the ASX on 7 August 2026 (slide 14). Operating in a highly fragmented sector, it sees continued consolidation opportunity.
Looking ahead, De.mem said it expects continued strong performance in H2 2026 and is on track for record full calendar year 2026 results, supported by:
- Record H1 2026 results providing a solid foundation, with approximately 90% recurring revenues
- A strong and growing cash balance
- Growth momentum across 29 consecutive quarters
- A 24% cash receipts CAGR over the past seven years
- Double-digit organic growth momentum
- Continued contribution from the Western Australian business, including Core Chemicals (~49% of revenue)
- Record performance from German subsidiary De.mem-Geutec (~$2.5m revenue)
- Ongoing domestic filtration launch, including the new ~$100k p.a. Singapore business
This outlook reflects the company’s expectations rather than a guaranteed result, with forward performance subject to the usual market and operational risks.
CEO Andreas Kroell on the result
Andreas Kroell, Chief Executive Officer, De.mem Limited
“I am delighted to report our strongest half-year results in the Company’s history. We have been able to deliver significantly positive half-year EBITDA of approximately $1.6m, nearly tripling the result from prior corresponding period, as well as strong operating cash flows. Our record revenue growth of 26% and cash receipts growth of 28% demonstrate the success of our strategic focus on recurring revenue segments and operational excellence. With over 90% recurring revenues, strong cash generation, and exciting growth opportunities in industrial and domestic water treatment markets, we are well positioned to continue delivering record results for shareholders. Our strong first half performance, combined with the full-year contribution from recent acquisitions and progress in new markets, positions us well for continued growth in the second half and beyond.”
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