Trajan Group (TRJ) H1 2026 earnings summary

Executive summary

• H1 FY26 revenue increased 3.8% year-over-year to $84.1M/AUD 84.1 million, with strong Q2 momentum and growth in Components & Consumables and Disruptive Technologies, but a decline in Capital Equipment revenue.

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

• 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.

• Strategic investments in inventory and in-region manufacturing impacted Q1 margins but are expected to yield long-term benefits.

Financial highlights

• Gross profit rose 1.4% to $29.7M, with group gross margin at 35.3%–37.4%, down 2.3 points year-over-year.

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

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

• Cash balance at December 2025 was $12.7M, up 6.7% from June 2025; free cash flow was negative at $(1.1)M due to working capital investment.

• Inventory peaked at $33.4M in Q2, then reduced to $30M by December, expected to convert to cash in H2.

Outlook and guidance

• FY26 guidance reaffirmed: revenue above $170M/AUD 170 million and normalised EBITDA/NEBITDA above $16M.

• 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.

• Full-year revenue guidance is $172.6M, with H2 revenue expected at $88.5M.

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

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