Transense Technologies (TRT) H2 2026 earnings summary

Executive summary

• Revenue for FY 2026 was £4.63m, down from £5.55m, mainly due to a 40% reduction in Bridgestone iTrack royalty rates and lower sales to tire majors, reflecting a challenging year with mixed segment performance.

• SAWsense revenues grew 20% year-over-year, with strong momentum in aerospace, eDrive, and robotics, though motorsport was flat; aerospace up 25% with strong GE Aerospace sales.

• Translogik revenue was flat overall, masking strong new business growth in new channels, despite a 34% drop in legacy product sales to tire majors; distributor channel revenue up 20%.

• Adjusted EBITDA was £0.66m, with operating cash flow of £0.88m and a closing cash balance of £1.5m.

• Significant investments were made in IT, sales, and the SAW pilot production line, with CapEx totaling £1.3m.

Financial highlights

• Gross margin remained robust at 88% (88.1% in some reports), slightly down from 89.9% the previous year.

• Adjusted EBITDA of £0.66m, with adjusted PBT at breakeven; reported PBT was a loss of £0.11m.

• Net cash increased by £360k, with net cash after asset financing at £0.57m.

• Operating expenses increased to £3.38m from £3.03m.

• Operating cash flow exceeded EBITDA, reflecting strong cash management.

Outlook and guidance

• Board and broker research expect over 25% revenue uplift in FY 2027, with growth expected in motorsport, aerospace, and new product launches.

• Early FY 2027 trading is in line with plans, with growth weighted to the second half.

• Bridgestone iTrack royalty revenue expected to stabilize above £2m, with potential upside from recent market share gains.

• Well placed to absorb further royalty rate reductions in FY28.

• SAWsense and Translogik are positioned for strong growth, with new products and customer wins expected to drive performance.