Financial performance
In the 2025-26 financial year, we recorded year-end profit before tax of $248.7 million.
Revenue was $1.842 billion with some of the contributors to this being:
- strong water sales
- significant contributed assets arising from mains extension contributions and infrastructure assets gifted to us from developers
- capital contributions for work we perform, due to strong statewide development activities.
Total expenses were $1.594 billion. Some of the contributors to this were:
- interest expense and depreciation of infrastructure assets make up more than 44 per cent of the total expenses
- substantial operating costs including Alliance contracts and framework partner costs
- significant materials costs due to an increase in the volume of maintenance activities.
As a significant revenue contributor to the Government of South Australia, for the broader benefit of the people of South Australia, an amount of $436.6 million was paid in 2025-26.
This saw $88.4 million of business operating expenditure contributed to other government agencies and/or councils through:
- external fees and charges paid to other government agencies
- provision of services delivered by other government agencies
- operational taxes such as land tax or council rates.
Within interest expense, $108.8 million was paid to the South Australian Financing Authority as guarantee fees and margins. An income tax equivalent of $72.4 million and a dividend of $167.0 million were also paid.
Contributions to government | 2025-26 actuals $’000 |
External fees and charges | 62,051 |
Contract services provided | 1,348 |
Operational taxes and tax equivalents | 25,004 |
Total contained within operating expenses | 88,403 |
As a percentage of total operating expenses | 9.9% |
Interest expense – guarantee fees* | 103,681 |
South Australia Government Financing Authority margin fees | 5,138 |
Additional interest paid to owner | 108,819 |
Income tax equivalents | 72,362 |
Dividends at 100% of profit after tax** | 167,016 |
Total amounts paid to government | 436,600 |
*Guarantee fees are paid to the South Australian government to remove any competitive advantage we might have due to our ability to borrow under the South Australian government credit rating.
**Dividend was paid based on 100 per cent of the forecast profit after tax (PAT) as at April 2026. The actual year end PAT position was higher. This will be adjusted in the 2026-27 dividend payment.
This year, we spent $1.3 billion on capital expenditure, with $29.5 million spent on information technology and $1.29 billion on infrastructure and mandated growth (extensions and connections).
We continue to focus on improvements to our water and wastewater infrastructure assets and water security of the state, and invest in major infrastructure projects, all of which have a positive impact on our customers and the state. In 2025-26 these included:
- growth infrastructure $335 million
- Eyre Peninsula Desalination Plant $238 million
- Tea Tree Gully sustainable sewers $105 million
- metro water and wastewater connections $71 million.
The following is a summary of external consultants engaged in 2025-26, and the nature and cost of the work undertaken.
Consultant | Amount ($) | Purpose |
Less than $10,000 | ||
Adelaide Workplace Mediation | 2,450 | Advice for staff matters and industrial action |
EMA Consulting | 5,063 | Advice for staff matters and industrial action |
Between $10,000 and $50,000 | ||
Nil to report | ||
Greater than $50,000 | ||
Converge International Pty | 10,919 | Employee Assistance Program for Customer Call Centre |
Marsden Jacob Associates Pty | 49,924 | Economic analysis – Greater Adelaide Response Plan |
KPMG | 193,751 | Contracts and labs review |
Alvarez & Marsal Australia | 3,119,145 | Consulting for growth projects |
Total | 3,381,252 | |
The following reflects contracts entered into during the financial year as reported to the Department of Treasury and Finance pursuant to Treasurer’s Instructions 18 – Procurement. The information is unaudited and exclusive of GST.
Contracts entered into | 2025-26 | 2025-26 |
With South Australian businesses | 803 | $1,360,549 |
With non-South Australian businesses | 184 | $115,126 |
Total | 987 | $1,475,674 |