Key Highlights

  • COSOL expects statutory EBITDA for H1 FY27 of $3.3 million to $3.6 million, an improvement of about $0.7 million on H1 FY26.
  • Underlying EBITDA, excluding restructuring costs of about $0.3 million, is expected to be $3.6 million to $3.9 million.
  • A 10-year contract with the Spokane Transit Authority, secured with IBM, has an approximate value to COSOL of A$11 million.
  • The company is targeting resumption of Dividend payments following H1 FY28, payable in H2 FY28.

COSOL Limited (ASX:COS) has provided an update on its operating performance for FY27, together with a new contract in US mass transportation, according to an announcement dated 12 November 2026. Revenue for the first half is expected to be in line with H1 FY26, while statutory and underlying EBITDA are expected to improve as an internal restructure takes effect. The company is an asset management technology and services provider serving asset-intensive industries.

Half-year Earnings outlook

Statutory EBITDA for H1 FY27 is anticipated to be between $3.3 million and $3.6 million, an improvement of about $0.7 million on H1 FY26. Underlying EBITDA, which excludes restructuring costs of about $0.3 million, is anticipated to be between $3.6 million and $3.9 million. The company expects the Margin improvement to continue into the second half, with revenue growth resuming on several new contracts in transportation and infrastructure.

The interim chief executive said the business-wide cost-cutting exercise launched in the second half of FY26 is starting to show impact. The company is targeting a 150-point margin improvement in its Australian consulting Business as higher-margin AI and proprietary IP-driven work comes through.

The Spokane contract

The 10-year contract with the Spokane Transit Authority in Washington State was secured in Partnership with IBM and 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 software will support the optimisation, management, monitoring and maintenance of physical assets, notably the authority's bus fleet.

The company says the contract follows earlier wins in Canada and Australia and that further opportunities are being pursued in mass transportation, infrastructure and energy in Australia and the US. The company has described these as long-term, higher-margin engagements.

Final Word

COSOL's half-year outlook points to earnings improvement without revenue growth, with the larger contribution expected in later periods. The Spokane contract is significant in size, but the remaining A$7.3 million falls outside the initial capital and implementation component. The timing of revenue recognition and the success of the restructure will shape the company's path back to dividend payments.