What WiseTech Global's (ASX:WTC) FY26 Results Reveal About Its Reset in the ASX 200

Highlights

• WiseTech Global reported FY26 revenue of US$1,395.9 million, increasing 79% from FY25, supported by the consolidation of e2open and continued CargoWise growth.
• Underlying EBITDA increased 56% to US$644.5 million, although the underlying EBITDA margin declined from 53% to 46%, reflecting the inclusion of e2open's lower-margin operations.
• The company entered FY27 targeting revenue of US$1.48 billion–US$1.54 billion, improved operating margins and further debt reduction, while integration and execution risks remained important considerations.

WiseTech Global Limited (ASX:WTC) is navigating a substantial transformation following its acquisition of e2open and the expansion of its logistics software operations.

The acquisition significantly increased the company's revenue base and extended its presence across global supply chains. However, it also introduced integration requirements, additional financing obligations and pressure on consolidated operating margins.

WiseTech released its FY26 financial results on 26 August 2026, reporting considerable revenue growth alongside higher underlying earnings.

Nevertheless, the decline in statutory profitability and increased balance sheet leverage highlight why future operating performance, cost efficiencies and debt reduction remain central to the company's investment outlook.

What WiseTech Does

WiseTech Global develops software solutions for logistics, global trade and supply chain management.

Its flagship CargoWise platform supports freight forwarders, customs brokers and logistics providers through integrated systems covering shipment management, customs compliance, documentation and financial processes.

The company generates a substantial proportion of revenue through recurring software subscriptions and licensing arrangements.

Following the acquisition of e2open, WiseTech expanded into additional supply chain activities, including connected planning, trade compliance and enterprise collaboration.

The acquisition was completed on 4 August 2025, contributing to the company's enlarged FY26 operating structure.

WiseTech reports its financial results in US dollars, while its shares trade on the Australian Securities Exchange in Australian dollars.

What the FY26 Result Showed

For the financial year ended 30 June 2026, WiseTech reported revenue of US$1,395.9 million, compared with US$778.7 million in FY25.

The 79% increase primarily reflected the inclusion of e2open following its acquisition.

Reported EBITDA increased 46% to US$558.4 million, compared with US$381.6 million in FY25.

However, the reported EBITDA margin declined from 49% to 40%.

Underlying EBITDA rose 56% to US$644.5 million, while the underlying EBITDA margin decreased from 53% to 46%.

Statutory net profit after tax declined 11% to US$178.7 million, compared with US$200.7 million in FY25.

Conversely, underlying net profit increased 29% to US$313.5 million.

The difference between statutory and underlying profitability reflects adjustments involving acquisitions, restructuring, divestments and other specified items.

FY26 Financial Performance

The results demonstrate substantial operating scale, although the decline in consolidated margins and statutory profit indicates that revenue growth did not translate uniformly into improved profitability.

How the Core Business Is Performing

CargoWise remained an important contributor to WiseTech's financial performance.

FY26 CargoWise revenue increased 11% to US$756.9 million, supported by customer growth, additional large global freight forwarder deployments and the introduction of CargoWise Value Packs.

The new commercial model was launched in December 2025 to align customer payments more closely with product functionality and usage.

By 30 June 2026, more than 95% of CargoWise customers had transitioned to Value Packs.

The company also reported approximately 55% growth in new small and medium-sized enterprise signings and around 30% growth in overall new customer signings since the model's introduction.

However, these growth rates compare specified signing periods rather than representing full-year revenue growth.

WiseTech also reported that 61 large global freight forwarder rollouts had been secured, including 13 of the world's 25 largest freight forwarders.

Continued implementation of these contracts may contribute to future revenue, although the timing of customer deployments remains relevant.

How e2open Changed the Business

The acquisition of e2open represented the largest structural development in WiseTech's FY26 performance.

The acquired business contributed US$541.2 million in revenue over 11 months.

Its inclusion expanded WiseTech's operating scale and product portfolio, but also reduced consolidated operating margins because e2open entered the group with lower profitability than the existing CargoWise business.

WiseTech reported an underlying EBITDA margin of approximately 36% for e2open in FY26.

During the year, management progressed the integration of products, teams and operational processes.

The company also reported US$64 million in annualised run-rate cost savings from e2open, exceeding its previous FY27 synergy target of US$50 million.

These savings contributed to improved profitability within the acquired operations.

However, the integration remains an important execution priority, and the realisation of annualised cost savings does not necessarily represent an equivalent amount of cash savings already received.

Artificial Intelligence and Operating Efficiency

WiseTech continued investing in artificial intelligence and automation across its software products and internal operations.

The company reported approximately US$115 million in total annualised run-rate cost savings during FY26.

These savings comprised US$64 million from e2open integration, US$34 million from its AI Transformation programme and US$17 million from broader operating efficiency initiatives.

The AI Transformation programme involved changes to product development and customer service processes.

WiseTech also continued developing artificial intelligence capabilities within CargoWise, including automation tools intended to improve logistics workflows.

Research and development expenditure increased 29% to US$340.7 million, representing approximately 24% of annual revenue.

During FY26, the company delivered 1,827 product enhancements, reflecting continued investment in software capabilities.

Nevertheless, the financial benefits of new AI-related products will depend on customer adoption, implementation and operating performance.

What Management Expects in FY27

WiseTech has provided guidance for continued revenue growth and improved profitability during FY27.

Management expects revenue of US$1.48 billion–US$1.54 billion, representing growth of approximately 6%–10%.

Underlying EBITDA is forecast at US$725 million–US$780 million, reflecting growth of approximately 12%–21%.

The company also expects its underlying EBITDA margin to increase to 49%–51%.

These projections assume further progress integrating e2open, expanding CargoWise Value Packs and introducing additional products.

Management also expects greater adoption of artificial intelligence capabilities to support operating efficiency.

However, the guidance depends on prevailing market conditions and customer adoption.

Changes in international trade volumes, industrial activity or implementation schedules could influence the eventual financial outcome.

How the Balance Sheet Looks

WiseTech's acquisition strategy increased its financial leverage during FY26.

At 30 June 2026, approximately US$2.2 billion of its US$3.0 billion debt facility was outstanding.

The company held cash of US$343.5 million and reported a net leverage ratio of 2.7 times.

This was below its previously indicated target of approximately 3.0 times.

Operating cash flow increased 29% to US$564.0 million, while free cash flow rose 43% to US$410.7 million.

Underlying free cash flow reached US$489.6 million, representing an increase of 67%.

Management expects to reduce net leverage to approximately 2.2 times by the end of FY27 and below 2.0 times during FY28.

However, these targets remain subject to future earnings, cash generation and capital allocation decisions.

The company's ability to reduce borrowings while continuing to invest in product development will remain an important indicator of financial flexibility.

Governance Changes and Board Oversight

WiseTech has implemented changes to its leadership and governance structure.

Zubin Appoo became permanent Chief Executive Officer effective 28 July 2025.

Raelene Murphy assumed the role of independent Board Chair effective 7 July 2026.

Tim Ebbeck was appointed an independent non-executive director and Chair of the Audit and Risk Committee effective 1 September 2026.

These appointments formed part of a broader board renewal programme intended to strengthen governance and independent oversight.

The separation of the Chair and Chief Executive Officer roles also established a more conventional leadership structure.

For investors, governance developments remain relevant alongside the company's acquisition integration, debt management and operating strategy.

Dividend and Shareholder Returns

WiseTech declared a fully franked final ordinary dividend of 8.8 US cents per share, representing a 14% increase from 7.7 US cents in FY25.

The final dividend was payable on 9 October 2026 to shareholders registered on 14 September 2026.

The distribution represented approximately 17% of underlying net profit.

The relatively modest payout proportion leaves a substantial share of underlying earnings available for business investment and other financial priorities.

However, future dividends remain subject to board decisions, cash flow requirements and the company's financial position.

Competitive Position

WiseTech operates in a competitive international software industry, providing technology used across freight forwarding, logistics and supply chain management.

CargoWise benefits from its integration into customer workflows and the complexity of international logistics operations.

These characteristics may create switching costs for customers relying on the platform for business-critical processes.

The acquisition of e2open has expanded WiseTech's exposure to additional supply chain management activities.

However, the enlarged business also faces integration challenges and customer adoption risks.

Changes to pricing models, technological developments and competing software products may influence future customer relationships.

Continued investment in product capabilities and service delivery will remain important to maintaining WiseTech's competitive position.

Risks and Developments to Monitor

Several factors could influence WiseTech's financial performance and investment outlook.

Integration Execution: The company must continue integrating e2open and improving its operating efficiency to achieve anticipated financial benefits.

Margin Recovery: FY27 guidance assumes underlying EBITDA margin expansion to 49%–51%, making cost management and operating leverage important.

Financial Leverage: The net leverage ratio of 2.7 times highlights the importance of debt reduction and sustained cash generation.

Customer Adoption: Growth expectations depend partly on wider use of CargoWise Value Packs, AI products and additional software capabilities.

Statutory Profitability: Higher financing and amortisation expenses contributed to lower statutory earnings despite increased underlying profitability.

Foreign Exchange Exposure: WiseTech reports in US dollars while its shares trade in Australian dollars, making currency movements relevant to Australian investors.

The Bottom Line

WiseTech Global's FY26 results reflect a business undergoing substantial operational and financial transformation.

The acquisition of e2open helped increase revenue by 79% to US$1,395.9 million, while underlying EBITDA rose 56% to US$644.5 million.

However, statutory net profit declined, operating margins contracted and financial leverage remained elevated.

Management's FY27 guidance points towards improved profitability and further debt reduction.

The central investment consideration is whether WiseTech can convert its expanded scale into sustainable margin improvement, stronger cash generation and lower leverage while maintaining growth in its core CargoWise platform.