Key Highlights

  • Trajan Group Holdings Limited (ASX:TRJ) reported H2 FY26 normalised group EBITDA of $8.1 million, up 61.8% on H1 FY26.
  • FY26 Group Revenue was $161.4 million, down 3.1% on the prior comparable period, with FY26 Group nEBITDA of $13.2 million, down 14.7%.
  • H2 proforma gross Margin improved to 40.6%, up 3.2 percentage points from 37.4% in H1 FY26.
  • The Company expects mid-single digit organic revenue growth and double-digit nEBITDA growth in FY27 over the prior comparable period.

Trajan Group Holdings Limited (ASX:TRJ) shares jumped 17.07% on Tuesday and with this, financial Year Results for 2026 comes in light which described an improved second-half operating performance relative to the first half, with margin and Earnings recovery attributed to operational initiatives taking effect during the period. H2 FY26 normalised group EBITDA was $8.1 million, an increase of 61.8% on the $5.0 million recorded in H1 FY26.

The Company noted that Australian dollar appreciation in H2 FY26 impacted reported earnings by approximately $5.0 million in revenue and $2.4 million in nEBITDA, as previously flagged in a May 2026 trading update. Excluding this foreign exchange impact in H2, revenue and nEBITDA were within 2.5% of updated guidance. On a currency-adjusted basis, group H2 nEBITDA rose to $10.5 million.

Full Year Results

Including the Q1 FY26 impacts previously disclosed, FY26 Group nEBITDA was $13.2 million, down 14.7% on the prior comparable period figure of $15.5 million. FY26 Group revenue was $161.4 million, down 3.1% on the prior comparable period figure of $166.5 million. Capital Expenditure reduced to $3.4 million in FY26 from $4.1 million in FY25, with the Company maintaining a stable cash balance of $12.6 million.

Margin Improvement and Project Neptune

H2 proforma gross margin improved to 40.6%, up 3.2 percentage points from 37.4% in H1 FY26; adjusted for Australian dollar appreciation, the Company estimated proforma gross margin in H2 would have been approximately 41.2% at H1 foreign exchange rates. The Company attributed this improvement to margin expansion initiatives under Project Neptune, including workforce resizing and cost control measures, footprint rationalisation including lower ongoing Facility costs in Connecticut, continued automation of Manufacturing processes, increased operational transfer to Malaysia, and the final phase of the global ERP rollout to include Germany.

Project Neptune cost reductions in headcount and facilities delivered an uplift of $1.2 million in H2, with a further $1.2 million uplift achieved through a reduction in Corporate Services headcount. The Company noted its Components and Consumables segment remained resilient during the year, while Disruptive Technologies continued to advance. The Capital Equipment segment was impacted by ongoing weakness in North America tied to funding and the global food market amid macroeconomic volatility, along with the discontinuation of Certus revenue resulting in lost revenue of approximately $2.1 million in FY26. The Company noted underlying Demand and order book trends are returning to previous levels, evidenced by a 30 June 2026 order book of $8.7 million.

FY27 Guidance and Priorities

Given the momentum observed since Q2 FY26, and at current exchange rates, the Company expects mid-single digit organic revenue growth in FY27 and double-digit nEBITDA growth in FY27 over the prior comparable period. The Company outlined three priorities for FY27: cost efficiency, building on Project Neptune initiatives including process automation, US Supply chain optimisation, ERP integration and expanded manufacturing capacity in Malaysia; margin expansion, supported by more stable trading conditions and embedded operational initiatives; and capital management, focused on inventory optimisation, Debt reduction and disciplined capital allocation to improve cash conversion.

Management Commentary

Trajan Founder, Chief Executive Officer and Managing Director Stephen Tomisich said FY26 was a year of two halves, with a difficult first quarter followed by operational recovery from the second quarter onward and a materially stronger second-half result. He said the benefits of Project Neptune and other operational initiatives became increasingly evident in H2, with improved gross margins, stronger nEBITDA and better cost control across the Group, though these gains were partly masked in the reported result by Australian dollar appreciation against key trading currencies.

Interim Chief Financial Officer Simon Billingham said the Company's year-end cash position, combined with its second-half performance, provides confidence in its ability to invest in operational priorities while maintaining financial discipline. He said the Company's key financial priorities for FY27 are to further optimise Working Capital and strengthen capital management through improved cash conversion and debt reduction.

Conclusion

Trajan Group Holdings closed FY26 with a second half that outperformed the first, as Project Neptune's cost and footprint initiatives translated into meaningfully higher normalised EBITDA and an improved gross margin despite headwinds from Australian dollar appreciation. With a leaner operating base entering FY27 and guidance pointing to mid-single digit revenue growth alongside double-digit nEBITDA growth, the Company's near-term focus centres on consolidating these operational gains while continuing to strengthen its Balance Sheet through improved cash conversion and debt reduction.