Trajan Group (TRJ) H1 2026 earnings summary

Executive summary

• H1 FY26 group revenue rose 3.8% year-over-year to $84.1M, with strong Q2 momentum following a challenging Q1 and growth in Components & Consumables and Disruptive Technologies, while Capital Equipment declined.

• Normalised EBITDA was $5.0M, down 36.2% year-over-year, reflecting margin pressures, FX revaluation, and higher operating expenses.

• Statutory net loss after tax was $0.4M, a significant improvement from a $3.5M loss in the prior year.

• The business remains diversified across customer, geography, and product, with a flexible global footprint and strong OEM partnerships.

Financial highlights

• Group revenue increased to $84.1M in H1 FY26, up 3.8% year-over-year, with pro forma gross margin down 2.3 points to 37.4%.

• Normalised EBITDA was $5.0M, down $2.9M year-over-year, impacted by lower gross margin and FX revaluation losses.

• Operating NPATA was $0.8M, down from $1.0M in the prior year.

• Free cash flow was negative at $(1.1)M, compared to $6.6M PCP, due to working capital investment and lower cash conversion.

• Net debt increased by $2.7M to $32.2M, mainly to fund inventory build.

Outlook and guidance

• FY26 guidance reaffirmed: net revenue expected above $170M and normalised EBITDA above $16M, with H2 revenue expected at $88.5M.

• H2 baseline NEBITDA projected at $8.6M based on Q2 run rate, with further benefits expected from Project Neptune, pricing actions, and supply chain initiatives.

• Inventory investment is expected to convert to cash in H2, supporting improved liquidity.

• Management remains confident in guidance, citing strong order book, sales momentum, and cost-saving initiatives, but notes macroeconomic and currency risks.