StepChange Holdings (ASX:STH) in Focus After FY26 Trading Update and New COO

Highlights

• StepChange Holdings Limited (ASX: STH) issued an ASX announcement on 25 June 2026 providing a FY26 trading update and confirming a leadership appointment.
• The Company expects FY26 annual revenue to exceed $55M and normalised EBITDA of $5.0M, with Q4 expected to deliver over $15M revenue and $1.5M EBITDA.
• Growth was driven by organic expansion across Tier 1 enterprise and government clients, plus contribution from the BroadReach acquisition completed during the year.
• Giuseppe (Pino) Todesco, formerly Chief Information Officer at Woodside Energy, will join as Chief Operating Officer from 1 July 2026, bringing more than 25 years’ experience.
• Final audited FY26 financial results are scheduled for release in late August 2026.

Trading updates from newly listed technology companies attract particular interest from Australian investors, as they offer an early read on how a recent ASX entrant is executing on its growth strategy. On 25 June 2026, StepChange Holdings Limited, which trades on the ASX under the ticker STH, released an announcement headed “StepChange Delivers Strong FY26 Growth and Strengthens Leadership Team”, covering both a FY26 trading update and a senior leadership appointment.

The market update is notable because FY26 represents StepChange’s first full year as an ASX-listed company. The Company pointed to strong growth in revenue and earnings compared with the prior corresponding period, underpinned by organic expansion across enterprise and government clients and the contribution from an acquisition completed during the year. Alongside the financial commentary, StepChange announced that an experienced technology executive will join as Chief Operating Officer, a move it framed as strengthening leadership capability as the business enters its next phase of growth.

This article sets out the specific figures and details disclosed in the announcement, including the expected revenue and EBITDA figures, the drivers of FY26 performance, and the background of the incoming Chief Operating Officer. The focus throughout is on what StepChange stated, presented in neutral terms without any forecast of where STH shares may go.

Company Overview

StepChange Holdings Limited operates under ACN 678 129 756 and is based at Suite 183, Level 6, 580 Hay Street, Perth WA 6000. According to the announcement, StepChange can trace its origins back to 2003 and was incorporated by its former directors in 2014.

The Company describes itself as a leading provider of consulting services aimed at streamlining the core business processes of client businesses, an area known as Enterprise Resource Planning, or ERP. StepChange focuses specifically on ERP transformation services and solutions, such as modernising or upgrading client ERP systems to better align with business objectives and improve efficiencies, along with implementation services and solutions. The Company delivers these services primarily through ERP software modules developed and provided by SAP, a global leading provider of ERP software.

In practical terms, StepChange operates as an IT services and technology company with a focus on SAP migration, cloud transformation and information and communications technology (ICT) advisory. Its client base spans Tier 1 enterprise and government organisations. The Company is led by Managing Director Shane Bransby, who is quoted in the announcement on both the FY26 performance and the leadership appointment.

Announcement Summary

The announcement has two distinct components. The first is a trading update for the financial year ended 30 June 2026, in which StepChange set out its expectations for FY26 revenue and earnings. The second is the appointment of Giuseppe (Pino) Todesco as Chief Operating Officer, effective 1 July 2026.

On the trading update, StepChange said it expects to report strong growth in revenue and earnings for FY26 compared with the prior corresponding period (PCP). This growth was supported by continued organic expansion across Tier 1 enterprise and government clients, together with the contribution from the BroadReach acquisition completed during the year. Following strong momentum in the June 2026 quarter (Q4), the Company expects to deliver over $15M revenue and $1.5M EBITDA for Q4, with annual revenue expected to exceed $55M and normalised EBITDA of $5.0M for FY26.

On leadership, StepChange advised that Pino Todesco, described as a highly experienced technology and operational executive, will join the Company as Chief Operating Officer from 1 July 2026. The announcement positions this appointment as further strengthening the Company’s leadership capability as it enters its next phase of growth. StepChange also confirmed that it will release its final audited FY26 financial results in late August 2026.

Key Details From the Announcement

The financial expectations disclosed in the trading update are summarised below.

StepChange identified the key drivers of FY26 performance as: strong growth across SAP migration, cloud transformation and ICT advisory services; continued expansion within existing Tier 1 enterprise clients; new client wins across energy and government sectors; the initial contribution from BroadReach and expanding advisory capability; and margin improvement supported by utilisation, delivery mix and higher-value engagements.

The announcement clarifies the basis of the normalised EBITDA figure. It states that normalised EBITDA excludes abnormal and once-off costs of $1.422M, comprising listing costs ($636k), share-based payments ($554k) and M&A transaction costs ($232k).

On the leadership appointment, the announcement provides substantial detail on the incoming Chief Operating Officer. Giuseppe (Pino) Todesco brings more than 25 years’ experience leading large-scale operational, technology and business transformation programs across complex enterprise environments. Most recently, Pino served as Chief Information Officer at Woodside Energy, where he was responsible for global digital and operational technology services supporting approximately 12,000 users across multiple geographies.

During his tenure at Woodside, the announcement states that Pino led the unification of Woodside’s digital environment following its merger with BHP Petroleum, delivering a large-scale integration program that enabled synergy savings exceeding US$75 million per annum. His experience spans enterprise architecture, cloud transformation, operational resilience, cyber governance and large-scale technology delivery. He also previously co-founded and scaled a technology services business prior to its sale to a major international industry participant.

Why This Matters for ASX Investors

For ASX investors, the trading update provides quantified expectations for a company in its first full year on the public market. The expected figures, FY26 revenue exceeding $55M and normalised EBITDA of $5.0M, give investors concrete reference points ahead of the audited results. The Q4 contribution of over $15M revenue and $1.5M EBITDA indicates the pace at which the business was operating in the final quarter of the year.

The disclosed performance drivers are also informative. StepChange attributed its growth to a combination of organic expansion within Tier 1 enterprise clients, new wins across the energy and government sectors, the integration of the BroadReach acquisition, and margin improvement supported by utilisation, delivery mix and higher-value engagements. This combination of organic and acquisitive growth, alongside an emphasis on margin, is the kind of detail investors typically examine when assessing the quality of a company’s earnings expansion.

The leadership appointment matters because it brings senior operational experience into the executive team at a point the Company describes as its next phase of growth. The detail on Pino Todesco’s background, including his role at Woodside Energy and his involvement in a large-scale integration program following the BHP Petroleum merger, gives investors context on the experience he brings to the Chief Operating Officer role.

It is worth noting that the figures in the announcement are expectations for FY26 rather than final audited results. The Company has stated that audited results will follow in late August 2026, and investors generally treat pre-result trading updates as indicative of, rather than identical to, final reported numbers.

Sector Context

StepChange operates in the IT services and technology consulting sector, with a specific focus on ERP transformation built around SAP software. ERP migration, cloud transformation and ICT advisory are areas where enterprise and government organisations continue to invest as they modernise legacy systems and adopt cloud-based platforms.

The Company’s reference to structural demand across SAP migration, cloud transformation and ICT advisory services reflects a broader theme in the technology services market, where large organisations undertake multi-year transformation programs. StepChange’s positioning around Tier 1 enterprise and government clients places it in a segment characterised by larger, longer-term engagements.

The BroadReach acquisition completed during FY26 illustrates a growth approach that combines organic expansion with selective acquisitions to broaden capability. The announcement notes that the Company remains focused on the integration of BroadReach and the evaluation of selective growth opportunities, indicating that acquisitions form part of its strategy alongside organic growth. For investors, the IT services sector is one where utilisation rates, delivery mix and the ability to win and expand enterprise relationships are commonly used as indicators of operational health.

Possible Market Reaction

This article makes no prediction about how STH shares may trade in response to the announcement. As a general matter, a trading update that flags strong revenue and earnings growth, combined with a senior leadership appointment, provides investors with new information that they will assess in the context of their own expectations.

Managing Director Shane Bransby framed FY26 as an important year for StepChange as its first full year as an ASX-listed company, citing strong organic growth, improving margins and the successful execution of strategic initiatives, including the integration of BroadReach and the expansion of enterprise and ICT consulting capabilities. On the leadership appointment, he said the Company was very pleased to welcome Pino, and that his experience leading large-scale digital transformation programs at Woodside and across enterprise environments would be a significant asset as the business continues to scale and expand its advisory and transformation expertise.

How the market interprets the update will depend on each investor’s assessment of the figures, the growth drivers and the leadership change. Nothing in this article should be read as a forecast of share price direction.

Risks and Uncertainties

The figures disclosed in the trading update are expectations rather than audited results. StepChange expects FY26 revenue to exceed $55M and normalised EBITDA of $5.0M, but the Company has stated that final audited FY26 financial results will be released in late August 2026, and audited outcomes could differ from the expectations set out in this update.

The normalised EBITDA figure of $5.0M is presented after excluding abnormal and once-off costs of $1.422M, comprising listing costs, share-based payments and M&A transaction costs. Investors typically consider both normalised and statutory measures, recognising that normalised figures exclude certain costs that are nonetheless real expenses for the period.

Growth that relies in part on an acquisition introduces integration considerations. The Company notes that it remains focused on the integration of BroadReach, and the success of any acquisition-related growth depends on effective integration. More broadly, as a technology services company serving enterprise and government clients, StepChange is exposed to the pace of client spending on transformation programs and to its ability to win and expand engagements, factors that can vary with economic and budgetary conditions.

The leadership transition itself, while presented positively, represents a change in the executive team, with the new Chief Operating Officer commencing on 1 July 2026. As with any senior appointment, the contribution of a new executive plays out over time.

What to Watch Next

The most concrete upcoming milestone is the release of StepChange’s final audited FY26 financial results, scheduled for late August 2026. Those results will confirm the actual revenue and EBITDA figures against the expectations of revenue exceeding $55M and normalised EBITDA of $5.0M set out in this trading update.

Investors may also watch the commencement and integration of new Chief Operating Officer Pino Todesco from 1 July 2026, the continued integration of the BroadReach acquisition, and the Company’s progress on the growth drivers it identified, including SAP migration, cloud transformation, ICT advisory, and new wins across the energy and government sectors. StepChange said it enters FY27 with increased scale, expanded advisory capability and continued exposure to structural demand, and that it remains focused on disciplined execution, margin improvement, BroadReach integration and the evaluation of selective growth opportunities.

Conclusion

StepChange Holdings’ 25 June 2026 ASX announcement delivered two pieces of news for investors: a FY26 trading update pointing to revenue expected to exceed $55M and normalised EBITDA of $5.0M, and the appointment of an experienced technology executive as Chief Operating Officer. The Company attributed its growth to organic expansion across Tier 1 enterprise and government clients, new wins in the energy and government sectors, the contribution from the BroadReach acquisition, and margin improvement, marking its first full year as an ASX-listed company.

For ASX investors, the update provides quantified expectations and a clear sense of the Company’s strategic direction heading into FY27, while the appointment of Pino Todesco as Chief Operating Officer from 1 July 2026 adds senior operational capability. The audited FY26 results, due in late August 2026, will be the definitive confirmation of the figures outlined in this investor update.