Highlights

• Objective Corporation grew FY26 revenue 9% to A$134.7m, with net profit after tax rising 5% to A$37.2m.

• Total dividends reached 26.0 cents per share, up from 22.0 cents, and the company bought back A$7.1m of shares.

• Annualised recurring revenue slipped 2% to A$117.3m, and the Department of Defence will not renew its ECM support program.

• Planning & Building revenue jumped 41% to A$18.5m after the Isovist acquisition and the Australian launch of Objective Build.

Objective Corporation Limited (ASX:OCL) is paying shareholders more even as one of its biggest government contracts winds down. The public sector software provider reported FY26 revenue of A$134.7m, up 9%, and lifted total dividends to 26.0 cents per share from 22.0 cents. Shares were trading at A$6.57 on 23 October 2026, up 4.29%.

Growth With a Gap in the Base

Profit moved in step with revenue. Adjusted EBITDA, a non-IFRS measure, rose 11% to A$51.5m, and net profit after tax climbed 5% to A$37.2m. Basic earnings per share were 38.9 cents against 37.2 cents. Operating cash flow reached A$49.3m, and cash at 30 June 2026 stood at A$92.7m with no external borrowings.

Recurring revenue is where the picture softens. Annualised recurring revenue, an unaudited non-IFRS measure, fell 2% to A$117.3m from A$120.2m. Information Intelligence, the largest line, saw ARR drop 5% to about A$81.0m, while Regulatory Solutions rose 4% to A$17.6m and Planning & Building rose 3% to A$18.7m.

The company flagged two specific pressures. The Department of Defence will not renew its ECM Upgrade and Support Program from 1 July 2026, a contract that contributed A$8.25m of FY26 revenue, with all related revenue ceasing on 30 June 2026. Separately, the National Heavy Vehicles Register managed services contract was discontinued after year end, cutting ARR by A$3.2m to A$14.4m. Objective Connect churn also ran higher than expected, and 11 New Zealand customers chose alternative solutions during the GoGet migration.

Where the Cash Went

Cash fell 7% from A$99.2m. Dividends took A$24.9m, buybacks took A$7.1m after none in the prior year, and the Isovist acquisition took NZ$4.0m in the year. Objective bought 100% of Isovist Holdings on 1 July 2025 for NZ$4.7m, adding the Isoplan platform to Planning & Building.

The FY26 dividend comprised a 13.0 cent unfranked interim, an 8.0 cent fully franked final and a 5.0 cent unfranked final. The franked final carried a record date of 3 September 2026 and payment on 14 September 2026. The unfranked final was set for record on 9 September and payment on 15 September. The dividend reinvestment plan remains suspended.

Research and development spending rose 8% to A$33.8m, or 30% of software revenue, with A$17.4m capitalised.

New Customers Offset Part of the Loss

Planning & Building revenue rose 41% to A$18.5m. Objective Build launched in Australia in April 2026, with North Sydney Council as its first Australian customer, and 35 New Zealand councils are live. Regulatory Solutions revenue grew 7% to A$25.3m, helped by the Department of Climate Change, Energy, the Environment and Water selecting RegWorks as a reusable regulatory platform across 18 agencies. Information Intelligence revenue rose 5% to A$87.9m, supported by extensions from Tauranga City Council and the Scottish Government for Nexus, and Keystone won its first UK financial services customer.

Priorities for FY27

The company published no numerical guidance for FY27. Directors said they have identified growth opportunities while keeping a focus on profitability, and that the balance sheet gives significant capacity for investment, including non-organic growth.

Stated priorities include positioning the Information Intelligence platform as a governed foundation for AI, moving customers to the cloud through Nexus Cloud, building a Defence and National Security sector team, and scaling RegWorks internationally, with an initial presence in Canada and completion of an IRAP assessment in Australia.