Highlights

  • David Leach took over as chief executive on 12 October 2026, ending John Scott's executive chair role.
  • Half-year results for the six months to 30 September 2026 are scheduled for release on 24 November.
  • FY26 Revenue edged up 0.4% to NZ$195.2 million, while ARR slipped 0.5% to NZ$174.3 million.
  • Australian ARR rose 73% in FY26, helped by the Cleanaway rollout covering more than 3,000 heavy vehicles.

EROAD (ASX:ERD) has completed its Leadership handover, with David Leach starting as chief executive officer on 12 October 2026 and Executive Chair John Scott returning to the role of chair and non-executive director. The change sets up the fleet technology company's half-year FY27 results on 24 November 2026, when it plans to combine its financial update with a broader report on strategic and operational progress.

Scott had taken on the executive chair role in October 2025, during a period of significant change at the business, and the board had said he would step back once a permanent chief executive was appointed.

Board Reshuffle Accompanies New Chief Executive

Alongside the chief executive appointment, director Sara Gifford will step down from the board for personal reasons, effective 1 December 2026. The board noted that Scott is not currently considered independent under NZX Listing Rules because of his recent executive role, and said it would review that status over time. As chair, he will also assist Leach with onboarding.

In September, EROAD advised that the operational update promised at its June 2026 annual shareholders' meeting would be folded into the November half-year results presentation and investor briefing, following discussions with shareholders.

FY26 Results Showed Flat Revenue and a Large Impairment

For FY26 to 31 March 2026, EROAD reported revenue of NZ$195.2 million, up 0.4%, and annualised Recurring Revenue of NZ$174.3 million, down 0.5%. Normalised EBIT was NZ$2.9 million, but the statutory EBIT loss reached NZ$155.9 million after a NZ$134.7 million non-cash Impairment of North American assets, which had been flagged in October 2025. The net loss after tax was NZ$161.1 million.

Free Cash Flow to the firm was NZ$0.1 million, or NZ$14.4 million normalised for the 4G hardware upgrade programme. Net Debt stood at NZ$16 million, with Liquidity of NZ$49 million against a NZ$65 million Credit Facility limit.

Regional Picture Splits Between Growth and Repair

Australia was the standout in FY26, with revenue up 40% and ARR up 73%. The Cleanaway rollout to more than 3,000 heavy vehicles is on track for completion in November 2026 and is expected to add A$5 million in ARR. In New Zealand, ARR rose 5% and the three-year 4G upgrade, covering 73,000 units, is complete.

North America revenue fell to NZ$74.4 million after a previously disclosed customer non-renewal and softer US freight conditions, with asset retention of 80%. New regional leadership is reviewing execution, service and go-to-market approach.

What Management Has Flagged for FY27 and Beyond

EROAD has not issued numeric FY27 guidance. In May, management said it expected the first half of FY27 to be challenging and was targeting significant improvement in FY28, with New Zealand and Australia driving performance and North America run with a cash focus. Its five priorities are operational excellence, product excellence, customer service, becoming AI native and winning electronic road user charging business. The company aims to deliver positive free cash flow over the medium to long term.

Shares were priced at A$0.71 on 2 November 2026, down 9.55% on the day, with a Market Capitalisation of A$134.25 million.