Trajan Group (TRJ) H2 2026 earnings summary

Executive summary

• FY26 saw mixed trading conditions, with significant FX headwinds, margin pressure, and transition to an “in-region, for-region” model impacting results, but H2 delivered operational recovery and improved margins.

• Components and consumables demonstrated stability and resilience, returning to long-term growth, while capital equipment faced softness but ended with a stronger order book.

• Disruptive technologies showed strong adoption and recurring revenue growth, particularly from microsampling for routine patient monitoring.

• Project Neptune and cost actions delivered tangible savings and efficiency, supporting margin recovery and EBITDA uplift in H2.

• The business remains confident in its intrinsic value and future growth trajectory, despite share price disconnect.

Financial highlights

• Group revenue was impacted by AUD appreciation, reducing reported revenue by AUD 5 million and EBITDA by AUD 2.4 million in H2.

• H2 FY26 nEBITDA increased 61.8% to AUD 8.1 million from H1, and AUD 10.5 million on a fixed currency basis; proforma gross margin improved to 40.6% in H2, up 3.2 pts from H1.

• FY26 group revenue was AUD 161.4 million, down 3.1% year-over-year; FY26 group nEBITDA was AUD 13.2 million, down 14.7% year-over-year.

• Net debt increased to AUD 34.6 million, with cash of AUD 12.6 million at year-end.

• Normalized operating cash flow was AUD 1.5 million, down AUD 13.4 million year-over-year, mainly due to working capital movements; free cash flow was negative at AUD 1.9 million.

Outlook and guidance

• Expectation of continued EBITDA momentum into FY27, with mid-single digit organic revenue growth and double-digit EBITDA growth.

• Cost base to further reduce as restructuring and Project Neptune benefits compound.

• FX hedging in place through FY27 to protect cash flows; currency risk remains but is mitigated by hedging and offshore manufacturing.

• Specific guidance to be provided after Q1 FY27.

• Priorities for FY27 include cost efficiency, margin expansion, and disciplined capital management.