Melbourne Water's net profit after tax fell from A$192.0 million in FY2021 to A$81.7 million in FY2025, a decline of 57.4%. Over the same years total revenue rose 6.1%, to A$2,110.6 million, while operating and other expenses rose 24.2%, to A$834.6 million.
Margins have narrowed
The EBITDA margin fell from 66.2% in FY2021 to 60.4% in FY2025. Profit did not fall in a straight line: it recovered to A$149.7 million in FY2024 before dropping in FY2025. The gearing ratio has stayed between 44.7% and 48.1% over the five years, and stood at 46.1% at 30 June 2025.
Borrowing is rising
Non-current borrowings reached A$4,813.2 million at 30 June 2025, up from A$4,402.2 million a year earlier, with a further A$362.1 million of short-term borrowings. The regulatory asset base grew from A$13,975.0 million at 30 June 2021 to A$15,621.2 million at 30 June 2025, in 2025-26 dollars.
A bigger program ahead
The Essential Services Commission has set a capital expenditure benchmark of A$7,307.7 million for 2026–2031; its draft decision described an allowance of that size as 51% above the previous five years. The approved revenue requirement for the period is A$10,010.4 million. Fixed desalination water security payments of A$608 million a year continue whether or not water is ordered, and the 2026-27 order is 150 GL.
Which projects the benchmark covers, how tariffs are set and passed through to bills, how the asset base and treatment plants are performing, and what to watch to 2031 are set out in the reference profile. The full report, Utility Intelligence Profile: Melbourne Water, is available for USD 99 at https://ourfuturewaterintelligence.com/reports/melbourne-water-utility-intelligence-profile. For a free overview, read the Melbourne Water Utility Snapshot at https://ourfuturewaterintelligence.com/utilities/melbourne-water.