Trajan Group (TRJ) H1 2025 earnings summary

Executive summary

• Achieved record H1 FY2025 revenue of $81.0M, up 6.0% year-over-year, driven by organic growth, end of global destocking, and strong demand across key segments.

• Normalised EBITDA nearly doubled to $7.9M, reflecting improved operational efficiency and cost reduction initiatives.

• Operating NPATA was $1.0M, slightly down from $1.3M year-over-year; statutory NPAT was a loss of $3.5M.

• Business defined by capital equipment and components/consumables segments, serving global blue-chip customers in pharma, food, clinical, and environmental sectors.

• Integration synergies from acquisitions and notable product achievements, including microsampling devices and new medical device registrations, support organic growth.

Financial highlights

• Group revenue up 6% year-over-year for H1 FY2025, reaching $81.0M.

• Proforma gross margin held steady at 39.7%; total gross margin at 36.2%.

• Cash flow from operations improved to $6.1M, free cash flow increased to $6.6M, and cash conversion ratio remained strong at 1.1.

• Net debt reduced by $2.3M to $30.6M, with leverage ratio below 2x.

• No interim dividend declared; cash flow predictability could support future dividends subject to board approval.

Outlook and guidance

• FY2025 guidance reaffirmed, with net revenue expected at $160.0M–$165.0M and group nEBITDA at $17.0M–$19.0M.

• Order book for capital equipment expanded by $2.4M to over $11.4M, supporting H2 revenue conversion.

• Margin improvement initiatives ongoing, with long-term targets of 50% consolidated gross margin and 20% EBITDA margin.

• Malaysia manufacturing site expected to provide a lower cost base and capacity for forecast growth.

• Guidance factors in expected headwinds from U.S. government funding and pharma sector softness, but defensive end markets and global diversification support resilience.