Why Trajan Group (ASX:TRJ) has guided to higher earnings for FY27 as it reports its first-quarter update

Sonal Goyal

28 October 2026 04:40 PM AEDT

Why Trajan Group (ASX:TRJ) has guided to higher earnings for FY27 as it reports its first-quarter update

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Key Highlights

FY27 guidance is net revenue of A$162 million to A$166 million and nEBITDA of A$16.0 million to A$17.5 million, with first-quarter nEBITDA of about A$3.5 million on unaudited accounts.
FY26 revenue was A$161.4 million, down 3.1 per cent, and nEBITDA was A$13.2 million, down 14.7 per cent, while operating NPATA rose to A$2.2 million.
Net debt was A$34.6 million at year end, and guidance depends on exchange-rate and Capital Equipment assumptions.

Trajan Group Holdings Limited (ASX:TRJ) used its 2026 annual general meeting on 28 October 2026 to provide FY27 guidance and a first-quarter trading update. The company guided to net revenue of A$162 million to A$166 million and nEBITDA of A$16.0 million to A$17.5 million for the year, and said first-quarter nEBITDA was about A$3.5 million on unaudited management accounts.

The business

Trajan describes itself as a global developer and manufacturer of analytical and life sciences products and devices. It employs about 600 people across seven manufacturing sites in the United States, Australia, Europe and Malaysia. Its segments are Components and Consumables, which is the core, Disruptive Technologies, and Capital Equipment. About 85 per cent of revenue is in US dollars and euros. Headcount fell from about 645 in September to under 600 at the start of FY27.

FY26 results

For the year to 30 June 2026, revenue was A$161.4 million against A$166.5 million a year earlier, down 3.1 per cent. nEBITDA was A$13.2 million against A$15.5 million, down 14.7 per cent, while operating NPATA rose to A$2.2 million from A$0.8 million. The company said second-half nEBITDA of A$8.1 million was 61.8 per cent above the first half's A$5.0 million, and that gross margin rose to 40.6 per cent in the second half, up 3.2 points on the first half. Foreign exchange reduced second-half revenue by about A$5.0 million and nEBITDA by about A$2.4 million.

Cash at year end was A$12.6 million, against A$11.9 million a year earlier, and net debt was A$34.6 million, up from A$29.5 million.

First-quarter update

Trajan said net revenue at fixed exchange rates in the first quarter was up 3.8 per cent on the same quarter of FY26. Components and Consumables rose 5.2 per cent, Disruptive Technologies rose 12.7 per cent and Capital Equipment fell 1.2 per cent. Rolling 12-month nEBITDA was A$16.2 million. Proforma gross margin was above 42 per cent, employee expenses and scrap were each down more than 8 per cent, and net debt fell by A$1.6 million in the quarter.

FY27 guidance

Net revenue guidance of A$162 million to A$166 million implies about 2 per cent growth at the midpoint at actual rates, assuming current exchange rates and continued softness in Capital Equipment. The nEBITDA range of A$16.0 million to A$17.5 million has a midpoint the company said is a 27 per cent uplift on FY26. These are the company's forecasts, not results, and they depend on the assumptions it has stated.

Meeting votes

On proxies received, the remuneration report received 98.99 per cent of votes in favour, the re-election of John Eales 99.08 per cent and the re-election of Tiffiny Lewin 99.16 per cent. Three resolutions granting options to directors Mr Eales, Mr Khanna and Ms Lewin each received about 96.9 per cent in favour. The company said final results will be lodged with ASX after the meeting.

Cost and margin actions

The company pointed to cost measures behind the improved margin. Headcount fell from about 645 to under 600, employee expenses and scrap were each down more than 8 per cent in the first quarter, and proforma gross margin was above 42 per cent against 39.8 per cent for the proforma full-year comparison it cited. Trajan also noted that second-half nEBITDA of A$8.1 million was well above the first half, which it presents as the base from which FY27 guidance is built.

Points to note

The quarterly figures are unaudited management accounts. With net debt of A$34.6 million at the year end, and guidance resting on exchange-rate and Capital Equipment assumptions, the outcome depends on factors the company has flagged rather than on confirmed results.

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