EROAD (ASX:ERD) closed FY2026 with a headline loss of more than NZ$160 million, almost all of it a non-cash write-down of its North American business. Strip it out and the picture changes: modest Revenue growth, positive normalised earnings, and an Australian division whose Recurring Revenue jumped 73 per cent. A new chief executive starts in October 2026. With a Market Capitalisation of roughly A$155 million as at 11 September 2026, the dual-listed telematics group is a genuine turnaround case rather than a growth story.

Latest Development

On 4 August 2026 EROAD announced the appointment of David Leach as chief executive officer, effective 12 October 2026. Leach is a New Zealand-based technology executive with more than 20 years building and scaling software businesses. He is chief executive of cloud insurance software company JAVLN and previously led Cin7, where annualised recurring revenue grew more than fivefold to above NZ$110 million.

Leach has flagged priorities including an artificial-intelligence-native platform, faster growth and concentrating Investment where returns are strongest. Executive chair John Scott, who led the company through the transition, remains in that role for continuity.

Company Overview

EROAD describes itself as a connected fleet management platform, selling GPS telematics, in-cab cameras, equipment tracking and integrated software to customers in transport, cold chain logistics, construction and waste management. The Business addresses safety, efficiency, compliance and sustainability needs across New Zealand, Australia and North America. It is dual-listed, trading under the code ERD on both the NZX and the ASX.

Recent Developments

Announcements since the result have been largely administrative: a capital change notice and application for Quotation of securities on 26 August 2026, a substantial holder ceasing notice on 3 September 2026 and ongoing disclosure notices relating to a directors' fixed trading plan on 9 September 2026. Management indicated at the FY2026 result that a trading update would follow in September 2026.

Financial and Operational Position

For the year ended 31 March 2026, revenue was NZ$195.2 million, up 0.4 per cent, and annualised recurring revenue was NZ$174.3 million, down 0.5 per cent. Normalised Earnings before interest and tax were NZ$2.9 million, while reported EBIT was a loss of NZ$155.9 million after a NZ$134.7 million Impairment of North American assets. The net loss after tax was NZ$161.1 million.

Free Cash Flow was NZ$0.1 million as reported and NZ$14.4 million normalised, a 7.4 per cent margin. Net Debt stood at NZ$16 million, with NZ$49 million of cash and a NZ$65 million Credit facility. New Zealand recurring revenue grew 5 per cent and the 4G hardware upgrade was completed there. Australian revenue rose 40 per cent and recurring revenue 73 per cent, with a Cleanaway deployment across more than 3,000 vehicles expected to add A$5 million of recurring revenue once fully rolled out by November 2026. North America contributed NZ$74.4 million of revenue at 80 per cent asset retention.

What Investors May Watch Next

The September 2026 trading update and Leach's arrival in October are the immediate markers, followed by evidence on whether North American non-renewals have stabilised and whether the Cleanaway rollout lands on schedule. Progress on free cash flow and net debt is also measurable.

Risks

North America remains the weak link, with softness across the US freight market and customer non-renewals already forcing a large impairment. Group recurring revenue went slightly backwards in FY2026 and management has signalled a challenging first half of FY2027. A chief executive transition introduces execution risk, and hardware-led telematics faces persistent competitive and pricing pressure.

Conclusion

EROAD's FY2026 numbers separate cleanly into an accounting event and an operating one. The impairment dominates the statutory result, but Australian momentum, completed New Zealand hardware upgrades and positive normalised free cash flow suggest the underlying business is not standing still. Whether that is enough to follow depends on the September trading update and on how quickly a new chief executive can steady North America.