Gowell operating profit rises to $9.1 million in first half
Key Facts
Gowell Technology's operating profit rose to $9.1 million in the first half of 2026 from $3.9 million a year earlier, according to a results statement issued by Gowell Energy Technology on October 21, 2026. Operating revenue totaled $33,760,732 during the period, with equipment sales and service revenue increasing. First-half revenue in 2025 was $23.6 million, according to the company statement. The company posted net profit of $3,699,397, as finance costs offset part of the operating improvement. The results cover Gowell Technology's operations before the group's merger took effect in September, while management maintained its outlook for the current fiscal year.
The company attributed revenue growth primarily to a $9.0 million increase in equipment sales revenue from a year earlier. Services also contributed to growth, with revenue increasing by $1.2 million, according to the results statement. Gowell provides well logging and distributed sensing technologies to energy companies and is headquartered in Singapore. The company has regional centers in the United States and the United Arab Emirates, according to the merger completion announcement filed with the U.S. Securities and Exchange Commission. It had explained in an earlier investor webinar that its recurring revenue includes equipment rentals and data analysis, including well log interpretation. This revenue also includes software subscriptions and repair and maintenance services, alongside equipment sales.
Gowell recorded finance costs of $4,343,318 in the first half, mainly related to redeemable preferred shares. These costs limited the extent to which the improvement in operating profit translated into net profit, according to the company statement. Adjusted earnings before interest, taxes, depreciation and amortization totaled $14,122 thousand, a measure the company uses outside International Financial Reporting Standards. The reconciliation of this measure included a fair value loss on derivatives of $1,587 thousand. During the results presentation, the chief financial officer discussed the impact of capitalizing the research expenditure in question on adjusted earnings, according to a transcript of his response published by Investing.com. He said: "Adjusted earnings before interest, taxes, depreciation and amortization would have been $11.7 million had that expenditure been expensed." This hypothetical figure reflects charging research expenditure to expenses for the period rather than capitalizing it.
The results announcement followed the completion of Gowell's merger with special purpose acquisition company Inflection Point Acquisition Corp. V on September 25, 2026. The transaction completion statement set September 28, 2026 as the start of trading in ordinary shares on Nasdaq under the ticker GOW. Private investments in public equity associated with the transaction generated gross proceeds of $70 million, according to the official disclosure. These proceeds were before the deduction of transaction fees and expenses, according to the completion statement. The company earmarked the funding to support growth and working capital, while the reported operating results cover the period before the merger took effect.
In the market, Investing.com's coverage on the day of the results announcement reported that Gowell shares fell 7.05% to $3.76 during trading. That price snapshot compared with a previous close of $4.04. In its statement, the company maintained its fiscal 2026 revenue guidance at between $60 million and $68 million. That guidance compares with reported annual revenue of $47.2 million in fiscal 2025. It also maintained its adjusted earnings before interest, taxes, depreciation and amortization guidance for the current fiscal year at between $25 million and $29 million.
Investing.com's coverage of the results presentation linked management's cautious guidance to continued uncertainty surrounding Middle East activity. It also cited the timing of large capital project deliveries as one of the factors management considers in its forecasts. Uncertainties also included import permit approvals, according to the same coverage. The company had scheduled a webinar to present its results, strategy and outlook for October 21, 2026, at 10:00 a.m. U.S. Eastern Time in an official announcement. The webinar program includes an opportunity to ask management questions, according to the announcement filed with the U.S. Securities and Exchange Commission.