Atturra (ATA) Trading update summary

FY26 financial performance

• Underlying EBITDA for FY26 is expected between $30–30.5 million, in line with guidance, including $1.7 million in restructuring charges.

• FY26 revenue is projected at $348–352 million, slightly below previous guidance due to changes in revenue recognition for certain deals, with no impact on profitability.

• Operating cashflow for FY26 is around $9 million, with a strong 2H26 cashflow of $22–23 million, indicating a return to positive cash generation.

• A one-off non-cash goodwill impairment of $20–25 million will be recognized, mainly related to historic acquisitions in government and defence sectors.

FY27 outlook and strategic investments

• Focus shifts to organic growth, with strong revenue, EBIT, and underlying EBITDA growth expected, especially in 2H27.

• Additional $3 million investment in AI capabilities planned for FY27, with a $2 million negative earnings impact in 1H27, offset by growth in 2H27.

• Over $1.5 million in increased sales and management investment for ERP, particularly SAP, which is forecast to grow over 50% from FY26 to FY27.

• Scholarion TM investment to exceed $4 million in FY27, with expected losses of $2.4 million, mainly in 1H27; break-even anticipated in FY28.

• Ongoing on-market share buy-backs reflect disciplined capital management and focus on long-term shareholder value.

Market conditions and performance commentary

• The technology services market is rapidly evolving, with significant opportunities in AI, data, ERP, and education technology.

• Macroeconomic uncertainty and shifting client priorities have impacted some government consulting operations, but diversified business lines are driving growth.

• Strategic investments are aimed at strengthening long-term growth and deepening capabilities in key markets.

• The goodwill impairment is an accounting adjustment and does not affect cash flows or underlying operating performance.