Why fund managers see Energy One's European growth as the bigger story

Energy One's dominant Australian energy trading software business is being overtaken in growth terms by its expansion into a European market ten times the size.

31 May 2026 · 6 min read

Energy trading software provider Energy One has become a preferred way for fund managers to gain exposure to the growing complexity of decentralised power grids, with Cerutty Macro Fund's September 2025 Monthly Report describing it as a high-quality, high-margin software business providing mission-critical tools to automate energy trading, optimise portfolio management and manage regulatory compliance for energy retailers, generators and traders across Australia, the UK and Europe.

Europe, ten times the size of Australia, is the key growth driver

Cerutty Macro Fund's report broke down the two-region growth story: Australian annual recurring revenue grew 13% year on year to $25.3 million with EBITDA margins of 42%, reflecting pricing power and customer stickiness, while European and UK operations, now the key growth driver, delivered annual recurring revenue of $35.1 million, up 29% year on year, in a market the manager estimates is roughly ten times the size of Australia's. Total consolidated annual recurring revenue stood at $60.4 million, with a strong sales pipeline already booking further growth entering FY26.

They're the Iress for electricity traders. Essentially it's been a business that had a little bit of a chequered history, some cybersecurity issues, missed earnings back in the past... It's since recovered, inflected into profitability.

— Seneca Financial Solutions, Article, October 2025

Wilson Asset Management's September 2025 Monthly Report detailed the strategic framework management outlined for further growth: an M&A framework the manager sees as complementary to the group's organic revenue growth target of 15%, alongside expanding cash EBITDA margins, with index-flow tailwinds also boosting the stock after its addition to the S&P/ASX All Technology Index in September 2025. DMX Asset Management's own September 2025 report noted the company had passed a key inflection point with a strong FY25 result aligned to its aspirational forecast of 15-20% revenue growth with margin expansion, though the manager had trimmed its position into the resulting price strength given growing market recognition of the opportunity.

What managers are watching next

DMX Asset Management's July 2025 report noted the intended retirement of long-serving CEO Shaun Ankers by the end of 2026, describing its sentiment toward the transition as neutral given a favourable view of his track record balanced against the opportunity to bring in appropriately experienced new leadership. With Seneca Financial Solutions describing the stock as up around 250% from its purchase price after recovering from a chequered history that included cybersecurity issues and missed earnings, managers are watching whether the CEO transition can be managed smoothly enough to sustain the current growth trajectory across both the mature Australian business and the much larger European opportunity.