Fund Manager Summary
The fund managers believe that Ikegps Group Ltd presents a significant investment opportunity due to its strong operational position in the electrical utilities and communications sector. They note that IKE has accelerated subscription revenue, particularly driven by the adoption of its PoleForeman product by large US utility companies, now serving 8 of the 10 largest US utility companies. In their opinion, the ongoing investment in the US power distribution space, akin to Australia's Rewire the Nation initiative, positions IKE to benefit from the electrification and integration of renewable sources. Furthermore, IKE has reaffirmed its 35%+ subscription revenue growth target while maintaining strong cost controls, indicating that the group is just at the beginning of its growth journey.
Source: Trading View
Commentary From The Managers
Subscribe To Unlock
Date
Price
Summary
Unlock Recent Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Ellerston Capital
30 Oct 2025
$1.08
Summary
- ikeGPS provides integrated hardware and software to utilities and telcos across North America, aiding in the management of power distribution assets.
- Products digitize key measurements and locations of poles, enhancing visibility for expansion planning, maintenance, and compliance.
- Strong structural tailwinds are driving ikeGPS's growth, including an aging asset base, increasing replacement needs, and the expansion of electrification and renewables.
- Extreme weather necessitates more resilient networks, while 5G and fiber rollouts demand rigorous compliance testing of pole loads.
- ikeGPS is well positioned in the market, having been validated by eight of the ten largest investor-owned utilities.
- There is limited competition, as ikeGPS primarily serves customers still relying on manual methods and spreadsheets.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Text:
Text:
Text:
Summary
-
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua, ut enim ad minim veniam.
-
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat, sed ut perspiciatis unde omnis iste.
-
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur, at vero eos et accusamus et iusto odio dignissimos.pedita.
Updates are made available to members within 12 hours in accordance with the ThesisTracker Pro Service Level Agreement.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Ellerston Capital
30 Oct 2025
$1.08
- ikeGPS provides integrated hardware and software to utilities and telcos across North America, aiding in the management of power distribution assets.
- Products digitize key measurements and locations of poles, enhancing visibility for expansion planning, maintenance, and compliance.
- Strong structural tailwinds are driving ikeGPS's growth, including an aging asset base, increasing replacement needs, and the expansion of electrification and renewables.
- Extreme weather necessitates more resilient networks, while 5G and fiber rollouts demand rigorous compliance testing of pole loads.
- ikeGPS is well positioned in the market, having been validated by eight of the ten largest investor-owned utilities.
- There is limited competition, as ikeGPS primarily serves customers still relying on manual methods and spreadsheets.
Summary
Cerutty Macro Fund
30 Sept 2025
$0.83
- IKE provides enterprise software solutions used by major U.S. utility and telecommunications companies, including eight of the ten largest utilities.
- Its platform enables capture, analysis, and management of critical pole and network infrastructure data, essential during the U.S. grid modernization cycle.
- The business generates approximately $17m in annual recurring revenue at 90% gross margins, with an expected revenue of A$27m in FY26.
- Management aims for an EBITDA breakeven run rate in the second half of FY26, driven by organic growth, margin expansion, and product leverage.
- IKE is expanding its offerings through new software modules developed with major U.S. utilities, creating cross-selling opportunities within its existing customer base.
- A notable example is IKE PoleForeman, a tool for pole-load analysis aiding utilities in assessing pole strength and regulatory compliance.
- The company has strategic optionality, having received an unsolicited takeover proposal from private equity at NZD $1 per share.
- While sector consolidation is a possibility, it is not a base case for Cerutty Macro Fund's investment thesis, but could be an upside catalyst if industry interest resurfaces.
Summary
Ellerston Capital
31 May 2025
$0.86
- IKE is a provider of products and services to the electrical utilities and communications sector, facilitating the collection, analysis, and management of distribution assets.
- Recent 4Q25 results showed an acceleration in subscription revenue, attributed to the adoption of its PoleForeman product by large US utility companies.
- IKE now serves 8 of the 10 largest US utility companies, highlighting its growing market presence.
- The US is experiencing significant investment in the power distribution space, similar to Australia's Rewire the Nation initiative.
- IKE is well-positioned operationally to capitalize on the market opportunity as the US prepares its grid for electrification and renewable energy contributions.
- IKE reaffirmed its target of 35%+ subscription revenue growth and showcased strong cost controls, indicating a robust financial strategy.
- Ellerston Capital continues to hold its position in IKE, believing the group is only at the beginning of its growth journey.
Summary
Ellerston Capital
28 Feb 2025
$0.71
- Ellerston Capital notes that IkeGPS Group (IKE AU) experienced a strong month, rallying 29%.
- IKE received an unsolicited, non-binding acquisition offer from a large private equity group at NZ$1.00, reflecting a 62% premium.
- Discussions regarding the acquisition have ceased due to lack of support from major shareholders.
- There is an increase in M&A activity in the sector, supported by multi-decade tailwinds for upgrades to electrical grid resilience and capability.
- Following February, IKE signed contracts with two major US investor-owned electrical utilities, contributing approximately NZ$1m of ARR.
- IKE remains optimistic about securing additional subscription customers in both the short and medium term.
- Ellerston Capital continues to hold its position in IKE, reflecting confidence in the company's growth prospects.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
As the U.S. electrification wave surges, Ikegps Group Ltd seems poised to ride the tide. With a foothold in eight of the ten largest utility firms and a bold growth trajectory, the journey could just be beginning.
Last Updated: 30 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Ikegps Group Ltd (ASX:IKE)?
Fund managers including Ellerston Capital and Cerutty Macro Fund have invested in Ikegps Group Ltd (ASX:IKE).
Why do fund managers invest in Ikegps Group Ltd?
Fund managers are investing in Ikegps Group Ltd due to its strong position in the electrical utilities and communications sector, highlighted by accelerated subscription revenue growth driven by the adoption of its PoleForeman product by major US utility companies. With software now utilized by 8 of the 10 largest US utilities, and the ongoing significant investments in power distribution in both the US and Australia, Ikegps is well-positioned to capitalize on market opportunities. The company has reaffirmed its target of over 35% subscription revenue growth and demonstrated effective cost controls, indicating strong future potential.
What happened to Ikegps Group Ltd (ASX:IKE)?
Fund managers are investing in Ikegps Group Ltd due to its strong position in the enterprise software market for utilities and telecommunications in the U.S., where it serves major clients, including eight of the ten largest utilities. The company generates substantial recurring revenue with high gross margins and is expected to achieve EBITDA breakeven by FY26, driven by organic growth and new product offerings. The aging infrastructure and increasing demand for modernization in the utility sector present significant growth opportunities. Additionally, Ikegps has strategic optionality, having received a takeover proposal, indicating potential market interest.