Tracsis (TRCS) H2 2025 earnings summary

Executive summary

• Improved financial performance in H2 FY 2025, with results in line with revised April guidance and recovery in Traffic Data and Events profitability.

• Profitability issues in traffic data and events were resolved, strengthening the position for the new year.

• Recurring revenues grew, supported by new multi-year contracts in pay-as-you-go and geo-intelligence.

• Transformation of the operating model completed, integrating rail technology and services under global leadership.

• FY 2026 expectations remain unchanged, with UK rail market challenges already factored in.

Financial highlights

• FY 2025 group revenue was £81.9m, up 3% like-for-like year-over-year.

• Adjusted EBITDA was £12.6m, with margin at 15% (down 39 bps); H2 margin reached 19.2%.

• Operating profit increased 4% to £1.0m; profit before tax rose 60% to £1.6m.

• Recurring and transactional revenues increased by 8% year-over-year.

• Free cash flow improved to £7.7m, with year-end cash balance of £23.4m.

• Final dividend recommended at £0.014 per share, total dividend up 8% to 2.6p.

• £3m share buyback completed; £35m revolving credit facility remains undrawn.

Outlook and guidance

• FY 2026 expectations unchanged and consistent with market expectations, with UK rail headwinds already factored in.

• Focus on building H2 performance momentum, execution, and long-term growth and margin accretion.

• Priorities include operational delivery, organic growth, product development, and international expansion.

• No incremental pay-as-you-go transactional revenue included in forward guidance; will update as rollout progresses.

• Full recovery in Traffic Data and Events profitability expected through FY 2026.