Key Highlights

  • Hansen Technologies (ASX:HSN) shares were at A$3.44, down 19.06% on 19 August 2026 at 3:04 pm.
  • FY26 Operating Revenue declined 1.5% to A$386.5 million, while Support & Maintenance revenue increased 13.4% to A$230.3 million.
  • Underlying EBITDA rose 7.2% to A$119.6 million, while underlying NPAT increased 22.5% to A$48.5 million.
  • FY27 is expected to be an Investment and transition year, with revenue broadly stable and underlying EBITDA Margin expected to exceed 26%.

Hansen Technologies Limited (ASX:HSN) shares were trading at A$3.44, down 19.06%, or A$0.81, on 19 August 2026 at 3:04 pm, following the company's FY26 results and FY27 outlook. The software provider reported a 1.5% decline in operating revenue to A$386.5 million, although underlying EBITDA, underlying NPAT and Operating Cash Flow all increased during the year.

Revenue Declines as Recurring Income Expands

Hansen's FY26 operating revenue fell from A$392.5 million to A$386.5 million. The company attributed the decline primarily to revenue mix, lower licence fees and foreign exchange effects.

The decline in total revenue contrasts with a 13.4% increase in Support & Maintenance revenue, which reached A$230.3 million from A$203.1 million. The increase indicates a greater contribution from Recurring Revenue streams as Hansen continues transitioning away from upfront licence income towards consumption-based models.

The Communications & Media segment generated A$184.2 million in operating revenue, up 7.5%. The December 2025 Acquisition of Digitalk contributed approximately A$11 million of revenue during FY26 and expanded Hansen's communications capabilities.

Energy & Utilities revenue was weaker, falling 8.5% to A$202.3 million. The company cited customer caution, delayed decision-making, slower smart-meter deployment in Germany and some customer churn as factors affecting short-term activity.

EBITDA and Profitability Improve

Despite the revenue decline, Hansen reported higher profitability. Underlying EBITDA increased 7.2% from A$111.7 million to A$119.6 million, while the underlying EBITDA margin expanded from 28.5% to 31.0%.

Cash EBITDA increased 13.7% to A$106.2 million from A$93.4 million. Underlying NPAT rose 22.5% to A$48.5 million, while underlying NPATA increased 15.9% to A$65.9 million.

Underlying NPATA-based Earnings Per Share increased 15.8%, from 27.9 cents to 32.3 cents. The earnings growth occurred despite lower reported operating revenue, with cost management and changes in the revenue mix contributing to the result.

Cash Generation and Balance Sheet

Operating cash flow increased 52% to A$110.4 million from A$72.6 million. Hansen reported a cash conversion ratio of 0.9 times and maintained a Leverage Ratio of 0.1 times at the end of FY26.

The company repaid A$63.5 million of borrowings during the year. Hansen expects to reach a net cash position during the second quarter of FY27, which would provide additional balance-sheet capacity for acquisitions and investment.

AI and Product Development

Hansen continued investing in artificial intelligence across its software products, operations and customer solutions. The company established an AI Enablement Team and developed NOVA RAG, an enterprise knowledge platform designed to organise Hansen's product, customer and industry expertise for use in AI applications.

The company said its focus is moving from establishing AI capabilities towards deploying and commercialising AI-enabled solutions. AI is also being incorporated into its approach to evaluating potential acquisitions, particularly where proprietary data, embedded workflows and intellectual property can support software capabilities.

FY27 Outlook and Dividend

Hansen expects FY27 revenue to remain broadly stable compared with FY26. Support & Maintenance revenue is expected to grow approximately 6% to 8%, while the underlying EBITDA margin is expected to exceed 26%.

The company has described FY27 as an investment and transition year, with continued spending on AI-enabled capabilities, product innovation and customer development. Hansen expects revenue growth in FY28 and has stated that its underlying EBITDA margin is expected to return to its target of more than 30%.

The board declared a final Dividend of 5.0 cents per share, partially franked at 4.0 cents per share. The Record Date is 25 August 2026 and the payment date is 18 September 2026.

Conclusion

Hansen Technologies' FY26 results present a mixed operating picture. Revenue declined 1.5%, with Energy & Utilities revenue falling 8.5%, but the company recorded higher recurring Support & Maintenance revenue, a 7.2% increase in underlying EBITDA, a 22.5% increase in underlying NPAT and a 52% rise in operating cash flow. FY27 is expected to bring broadly stable revenue and an EBITDA margin above 26% as Hansen invests in AI and transitions further towards recurring consumption-based revenue, while the company's Balance Sheet is expected to move into a net cash position during the second quarter.