COSOL (ASX:COS) Shares Slide: What's Behind the Drop?

Sonal Goyal

13 November 2026 02:46 PM AEDT

COSOL (ASX:COS) Shares Slide: What's Behind the Drop?

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Key Highlights

COSOL shares were trading at $0.14 during the 13 November 2026 session, down 15.15%.
Statutory EBITDA for H1 FY27 is expected to be between $3.3 million and $3.6 million, an improvement of about $0.7 million on H1 FY26.
A 10-year contract with the Spokane Transit Authority is worth approximately A$11 million to COSOL.

During the Trading session on 13 November 2026, COSOL Ltd (ASX:COS) shares were trading at $0.14, down 15.15%, while the S&P/ASX 200 was down 0.73% at 9,079.70 at 12:39 pm AEDT. COSOL is a global asset management technology provider serving asset-intensive industries such as natural resources, energy, water, public infrastructure and defence. Its latest update was an announcement dated 12 November 2026 outlining trading for the first half of FY27.

H1 FY27 Earnings outlook

COSOL said first-half Revenue is expected to be in line with H1 FY26, with improvements in statutory and underlying EBITDA as an internal restructure takes effect. Statutory EBITDA is anticipated to be between $3.3 million and $3.6 million, around $0.7 million higher than H1 FY26. Underlying EBITDA, which excludes restructuring costs of about $0.3 million, is expected to be between $3.6 million and $3.9 million. The company expects the Margin improvement to carry through to the second half.

Spokane transit contract

The company said a 10-year contract with the Spokane Transit Authority in Washington State, secured in Partnership with IBM, has an approximate value to COSOL of A$11 million. The initial Capital spend and implementation component, over FY27 and FY28, accounts for A$3.7 million of that total. The contract requires COSOL to deliver and manage software that supports the optimisation and maintenance of the authority's physical assets, notably its bus fleet. Earlier in 2026, COSOL also secured contracts with a Canadian fund for a Montreal rail network and with an Australian rail consortium.

Dividend and leadership

COSOL is targeting the resumption of Dividend payments following H1 FY28, payable in H2 FY28, as Earnings Per Share recover. Interim chief executive Anthony Stokes said the business-wide cost-cutting exercise begun in H2 FY26 is starting to show impact, and that the company plans to focus its commercial effort on mass transportation, infrastructure and energy.

Sector context

Asset management software for transport and utilities depends on long-term government and infrastructure budgets, and contract timing can vary between periods. Consulting businesses in Australia are also sensitive to project pipelines and cost pressures. Companies in the sector often report revenue growth in steps as large multi-year contracts begin.

Risks investors are watching

Revenue for the first half is expected to be flat rather than growing, and the company has said Australian consulting momentum needs to recover during the rest of the year. The earnings outlook is a range, and restructuring costs of about $0.3 million sit outside the underlying figure. The Spokane contract value depends on delivery over ten years, and the company has said the margin target depends on higher-margin AI and proprietary contracts flowing through.

What to watch ahead

Investors will look for the half-year result against the EBITDA ranges, progress on the second-half revenue growth the company expects, and the delivery timetable for the Spokane implementation. Any further contract announcements in mass transportation and infrastructure will also be followed.

Final Word

COSOL's update points to stable first-half revenue and higher EBITDA alongside a major new US contract. The half-year result will show whether the margin gains and contract wins translate into the earnings recovery the company has outlined.

FAQs

Q: What EBITDA range did COSOL give for H1 FY27?

A: Statutory EBITDA is expected to be between $3.3 million and $3.6 million, while underlying EBITDA is expected between $3.6 million and $3.9 million.

Q: What is the value of the Spokane contract?

A: The 10-year contract with the Spokane Transit Authority is worth approximately A$11 million to COSOL.

Q: When does COSOL aim to resume dividends?

A: The company is targeting the resumption of dividend payments following H1 FY28, payable in H2 FY28.

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