Pointerra Limited (ASX: 3DP) has secured a three-year contract with Western Power, marking a substantial win that validates its Pointerra3D digital twin technology in the Australian energy utility sector.
The agreement involves deploying its platform across 50 transmission substation sites in Western Australia, and has a minimum total value of A$413,442 (ex-GST).
This amount covers licensing, implementation, integration, and ongoing support and maintenance for its Pointerra3D hosted digital twin platform.
The initial rollout will cover 50 transmission substation sites, however the architecture is designed for scalability to approximately 155 substations across the South-West Interconnected System.
Western Power expects implementation and go-live within two weeks of the contract award, demonstrating a swift deployment schedule.
Digital Twin Validation in Utilities
This contract was awarded through a competitive tender process.
It serves as key validation for Pointerra3D's capabilities within the Australian energy utility sector.
The Pointerra3D platform will host digital twins, leveraging high-resolution lidar, photogrammetry, and reality data in a hosted web-based platform.
Management highlighted that the contract supports broader digital twin programs at Western Power, indicating potential for further engagement and expansion of use cases.
Financial Headwinds and Pipeline
This positive announcement follows a challenging period for Pointerra in which the company reported a significant revenue decrease of 51% for the half-year ended 31 December 2025.
It also posted a net loss after tax of A$2.14 million for the same period, a substantial deterioration from a prior-year profit.
Auditors included an emphasis on material uncertainty related to going concern in the Half Yearly Report and Accounts, although directors maintained that cash flow forecasts supported operations for the next 12 months.
Despite these financial headwinds, earlier quarterly updates indicated improved cash collections and commercial momentum across various sectors, including US energy utilities, government, and defence.
These updates mentioned progress with the US DOE GRACI contract extension, valued at US$2.0 million (A$3.0 million).
Ongoing Risks and Opportunities
While the Western Power contract is a positive step, investor concerns regarding past financial performance and the previously flagged going concern uncertainty remain.
The execution of the contract, particularly the potential to scale from 50 sites to the full 155 substations, presents both an opportunity and an execution risk.
Pointerra continues to pursue other significant opportunities, including US Department of Energy (DOE) initiatives.
This includes DOE JARVIS joint proposals, where award timing had previously been delayed to FY26 Q2–Q3.
Securing and successfully delivering on these larger-scale projects will be crucial for the company's financial stability and growth trajectory.
