StepChange Holdings (ASX: STH) Announces Strategic US Expansion with Houston Hub Launch

In a recent ASX announcement, StepChange Holdings Limited (ASX: STH) has officially launched its United States operations with the establishment of StepChange Consultants USA LLC and a new Houston hub, marking a significant milestone in its international expansion. The ERP consulting specialist has immediately secured a project with long-standing Tier 1 client Woodside Energy, providing an instant revenue contribution from the new StepChange US Operations Houston Hub.

The Houston base represents a strategic move to tap into Texas’s massive technology and energy transformation market while servicing existing global clients with US operations. This expansion significantly increases StepChange’s addressable market for SAP ERP and digital transformation services, positioning the company to capture growing regional transformation projects.

What Services Will StepChange Provide Through Its Houston Operations?

StepChange specialises in Enterprise Resource Planning (ERP) transformation services, helping large enterprises modernise their core business systems. ERP systems integrate various business processes including finance, human resources, supply chain, and operations into a unified platform that improves efficiency and aligns with business objectives.

The company delivers these services primarily through SAP software modules, developed by the global leader in ERP software solutions. This specialisation positions StepChange within the expanding digital transformation market, where companies are migrating legacy systems to cloud-based solutions.

Core Service Offerings Include:

• ERP system modernisation and upgrades
• Cloud migration services
• SAP implementation and integration
• Business process optimisation
• Digital transformation consulting

The Texas technology and energy sector represents one of the fastest-growing ERP modernisation markets globally. Furthermore, major energy companies, industrial firms, and technology enterprises require specialised SAP consulting services, creating substantial demand for the expertise that the new US hub brings to the region.

How Does the Houston Hub Support StepChange’s Existing Client Relationships?

The new US presence provides immediate strategic advantages for StepChange’s relationship with Woodside Energy, one of their established Tier 1 clients. The initial project engagement secured with Woodside commenced on 5th November 2025, demonstrating immediate commercial traction for the US hub.

This local presence enables more responsive project delivery and deeper client integration, particularly valuable for Woodside’s significant US operations in the energy sector. The expansion strengthens StepChange’s ability to support clients where they operate, reducing travel costs while improving project efficiency.

StepChange Managing Director Shane Bransby commented: “Houston is a strategic hub for many of our existing clients and aligns with our focus on servicing Tier 1 enterprises in the energy, resources and industrial sectors. Texas represents one of the largest and fastest-growing technology and energy markets in the world, with significant investment underway in ERP modernisation and cloud migration.”

In addition, the establishment of a physical presence in Houston allows StepChange to build stronger relationships with existing global clients who maintain operations in Texas, creating opportunities for expanded service delivery across their US divisions.

What Market Opportunity Does StepChange’s US Expansion Address?

The establishment of US operations forms a key milestone in StepChange’s international expansion strategy, as outlined in the company’s Prospectus released on 8th July 2025. Texas represents one of the largest and fastest-growing technology and energy markets globally, creating substantial opportunities for SAP-related transformation projects.

Key Market Drivers Include:

• Significant investment in ERP modernisation across Texas energy sector
• Growing demand for cloud migration services
• Digital transformation initiatives by major industrial enterprises
• Need for specialised SAP consulting expertise in the region

StepChange can trace its origins back to 2003 and was incorporated by its former directors in 2014. The company has built a 20+ year track record in ERP consulting, establishing relationships with global Tier 1 clients and developing expertise in SAP software solutions.

However, the Texas market presents unique characteristics that differentiate it from other regions. The concentration of energy, resources, and industrial enterprises creates a natural alignment with StepChange’s sector expertise and service capabilities.

Why Should Investors Monitor the StepChange US Operations Houston Hub?

For investors, the StepChange US Operations Houston Hub launch represents a significant expansion of the company’s addressable market while providing immediate revenue opportunities. The company’s specialised focus on SAP ERP and digital transformation services positions it to capture value from the multi-billion dollar ERP modernisation market.

Investment Highlights Include:

• Immediate revenue contribution from Woodside project commencing November 2025
• Access to Texas’s technology and energy transformation market
• Enhanced service delivery for existing global Tier 1 clients
• Platform for capturing growing regional SAP transformation projects
• Scalable foundation for continued US market penetration

For instance, the immediate project engagement with Woodside demonstrates that existing clients recognise the value of having StepChange’s expertise available locally. This validates the expansion strategy and suggests strong potential for additional client projects in the region.

How Will the US Expansion Impact StepChange’s Growth Strategy?

The new corporate entity registered to support near-term revenue opportunities and client delivery in the US provides StepChange with the infrastructure needed to scale operations based on project pipeline development. The Houston hub allows the company to deliver immediate value to existing clients such as Woodside while positioning for future growth.

Near-term Strategic Priorities:

• Operational establishment of Houston hub capabilities
• Local team recruitment and training initiatives
• Client relationship development in Texas market
• Service expansion to existing clients’ US divisions

The expansion demonstrates StepChange’s commitment to delivering strong financial outcomes while executing on its growth strategy. With significant investment underway in ERP modernisation and cloud migration across the Texas market, the company is positioned to capture growing demand for specialised SAP consulting services.

How Does the Houston Location Benefit StepChange’s Service Delivery?

Houston’s position as a strategic hub for energy and industrial enterprises creates natural synergies with StepChange’s client focus. The city hosts headquarters and major operations for numerous global energy companies, providing direct access to decision-makers and operational teams requiring ERP transformation services.

Furthermore, Houston’s status as a technology centre enhances StepChange’s ability to recruit qualified SAP consultants and technical professionals. The local talent pool familiar with both energy sector operations and ERP systems creates recruitment advantages for scaling the StepChange US Operations Houston Hub.

The geographic location also provides logistical benefits for servicing clients across the broader Texas region and southern United States. Houston’s international airport connections facilitate efficient travel to client sites while maintaining the cost benefits of a Texas operational base.

What Is the Revenue Potential From the US Operations?

While specific financial projections have not been disclosed, the immediate project engagement with Woodside provides near-term revenue contribution from US operations. The company’s ability to secure client work upon hub establishment suggests strong demand for its specialised SAP consulting services in the region.

The broader Texas market presents substantial long-term revenue opportunities. Major energy companies, industrial enterprises, and technology firms are investing significantly in ERP modernisation and cloud migration initiatives, creating a pipeline of potential projects aligned with StepChange’s capabilities.

However, investors should note that scaling US operations will require investment in local infrastructure, team recruitment, and business development activities. The company’s future financial performance will likely be influenced by its ability to manage these costs effectively while capitalising on the substantial market opportunities in Texas. This strategic expansion will be a key area of focus for investors tracking StepChange’s growth trajectory.

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