COSOL Signs A$11 Million 10-Year Spokane Transit Authority Contract, Flags H1 FY27 EBITDA Improvement

Mukul

12 November 2026 10:15 AM AEDT

COSOL Signs A$11 Million 10-Year Spokane Transit Authority Contract, Flags H1 FY27 EBITDA Improvement

Image Source: Krish Capital Pty Ltd

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COSOL Limited (ASX:COS) has disclosed a 10-year enterprise asset management contract with the Spokane Transit Authority (STA) in Washington State, USA, valued at approximately A$11 million to COSOL, while also providing an operating update forecasting H1 FY27 statutory EBITDA in the range of $3.3 million to $3.6 million, an improvement of approximately $0.7 million on H1 FY26.

Key Points

10-year contract with Spokane Transit Authority secured in partnership with IBM, valued at approximately A$11 million to COSOL
Initial capital spend and implementation component over FY27 and FY28 accounts for A$3.7 million of the total contract value
H1 FY27 statutory EBITDA anticipated in the range of $3.3 million to $3.6 million, up approximately $0.7 million on H1 FY26
Underlying EBITDA, excluding restructuring costs of approximately $0.3 million, anticipated in the range of $3.6 million to $3.9 million
COSOL is targeting resumption of dividend payments following H1 FY28, payable in H2 FY28

Spokane Transit Authority Contract Details

COSOL disclosed that it has signed a 10-year contract with the Spokane Transit Authority, secured in partnership with IBM, to deliver and manage enterprise asset management software and services. The contract is valued at approximately A$11 million to COSOL, with an initial capital spend and implementation component of A$3.7 million to be recognised across FY27 and FY28. Under the agreement, STA has contracted COSOL to deliver and manage software supporting the optimisation, management, monitoring and maintenance of its physical assets, notably its bus fleet. The contract was signed in the week of the 12 November 2026 filing date, according to Interim Chief Executive Officer Anthony Stokes.

H1 FY27 Financial Performance Guidance

According to the filing, revenue for H1 FY27 is expected to be in line with H1 FY26. Statutory EBITDA for the half is anticipated to be in the range of $3.3 million and $3.6 million, representing an improvement of approximately $0.7 million on the prior corresponding period. Underlying EBITDA, which excludes restructuring costs of approximately $0.3 million, is anticipated to be in the range of $3.6 million to $3.9 million. The company said the margin improvement is expected to carry through to H2 FY27, with revenue growth resuming on the back of several new contracts in the transportation and infrastructure sectors.

Dividend Target and Broader Commercial Focus

COSOL disclosed it is targeting the resumption of dividend payments following H1 FY28, with dividends payable in H2 FY28, subject to continued recovery of earnings per share through H2 FY27 and into the following financial year. The filing states the company is pursuing further opportunities in the mass transportation, infrastructure and energy sectors in Australia and the United States. The Spokane contract follows previously disclosed agreements with Canadian fund La Caisse for digital management services for its Montreal CDPQ rail network and with a major rail consortium in Australia for digital asset management services.

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