Highlights

  • HiTech Group Australia (ASX:HIT) reported FY2026 Revenue of $65.61 million, down 3.2% from the prior corresponding period.
  • Gross profit declined 25.5% to $9.42 million, while EBITDA fell 35.35% to $5.59 million.
  • The company declared a 4.0 cents per share fully franked final dividend, following a 4.5 cents interim dividend.
  • HIT shares closed at $1.20 on 18 August 2026, down 7.69%, or 10 cents, during the session.

HiTech Group Australia Limited (ASX:HIT) reported a challenging FY2026, with revenue falling 3.2% to $65.61 million for the year ended 30 June 2026. Gross Profit declined more sharply, falling 25.5% to $9.42 million, while EBITDA decreased 35.35% to $5.59 million. EBIT also declined 35.61% to $5.54 million.

The company's shares closed at $1.20 on 18 August 2026, down 10 cents, or 7.69%, on the day. The financial results show that the decline in revenue was accompanied by a larger reduction in earnings, indicating pressure on margins during the reporting period.

HiTech attributed the FY2026 trading environment to broader economic conditions and government spending patterns. It said market conditions remained difficult throughout the year, with the full-year revenue outcome broadly consistent with its first-half performance.

Margin Pressure Remains a Key Issue

The decline in gross profit exceeded the reduction in revenue, with gross profit falling by $3.23 million from the prior corresponding period. EBITDA fell by approximately $3.05 million, while EBIT decreased by approximately $3.07 million.

HiTech said profitability remained below its longer-term targets. The company is therefore entering FY2027 with an emphasis on improving operational performance and increasing the contribution from newer service delivery agreements.

The Business has expanded beyond its traditional labour-hire operations through professional services panel agreements. These arrangements are intended to broaden its revenue sources and provide a greater proportion of contracted work.

Government Contracts Provide Revenue Visibility

HiTech continues to service government clients, including major federal agencies, with programs of work extending over the next 24 to 36 months. The company highlighted its work with Defence in particular, where fixed-term service agreements secured over recent years are expected to provide Recurring Revenue into FY2027 and subsequent periods.

The company expects these engagements to gain momentum as they mature. It also expects greater scale from these contracts to potentially allow additional revenue without an equivalent increase in overhead expenses.

This could become relevant to Earnings performance after the decline recorded in FY2026, although the company has not provided a specific FY2027 earnings forecast in the announcement.

Dividend and Balance Sheet

HiTech declared a 4.0 cents per share fully franked final dividend, following the 4.5 cents per share fully franked interim dividend. The final Dividend has an ex-dividend date of 8 September 2026, a Record Date of 7 September 2026 and a payment date of 22 September 2026.

The company ended FY2026 with $10.56 million in cash and no debt. The cash position provides a financial base for ongoing operations and potential corporate activity while the company works to improve earnings.

The final dividend is lower than the interim payment by 0.5 cents per share, although the announcement does not state that the full-year dividend represents a reduction from FY2025.

Hudson Transaction Remains in Progress

HiTech is continuing work on its proposed Acquisition of the Australian operations and selected Business Assets of Hudson. The company said it is progressing through the conditions precedent required for completion, with completion expected in September 2026.

The transaction could alter the scale and composition of HiTech's operations once completed. However, the announcement does not provide a quantified estimate of the acquisition's expected contribution to FY2027 revenue or earnings.

HiTech said it intends to continue pursuing growth opportunities aligned with market Demand as it moves through FY2027, while also focusing on the service agreements secured in recent years.

FY2027 Focus Shifts Toward Earnings Improvement

The FY2026 figures highlight a decline across revenue, gross profit, EBITDA and EBIT. Revenue decreased by 3.2%, but the larger declines in gross profit and operating earnings indicate that profitability was affected more materially than the top-line contraction alone.

For FY2027, the company is looking to the maturation of service delivery agreements, government programs and the proposed Hudson transaction as factors in its operating outlook. At the same time, broader economic conditions and government spending patterns remain variables that could influence the pace of improvement.

Conclusion

HiTech Group's FY2026 results show revenue declining 3.2% to $65.61 million, alongside a 25.5% fall in gross profit and a 35.35% decline in EBITDA to $5.59 million. The company maintained a cash balance of $10.56 million with no Debt and declared a 4.0 cents fully franked final dividend. Its FY2027 outlook is centred on government service agreements, newer professional services contracts and the proposed Hudson acquisition, while the company continues to address profitability that remains below its longer-term targets.