Key Highlights

  • Hansen reported FY26 operating revenue of $386.5 million, down 1.5%, and Support & Maintenance revenue of $230.3 million, up 13.4%.
  • Underlying EBITDA was $119.6 million (31.0% margin) and operating cash flow was $110.4 million, up 52.0%.
  • FY27 revenue is expected to be broadly stable, with an underlying EBITDA margin expected to exceed 26%.

Hansen Technologies Ltd (ASX:HSN) shares were priced at $3.45 during the trading session on 19 October 2026, up 0.29%. Hansen provides industry-specific software to the communications and media and the energy and utilities sectors. On 19 August 2026, the company released its results for the year ended 30 June 2026 (FY26), including segment performance, AI and acquisition updates, cash flow and an FY27 outlook that the Board describes as an investment and transition year. The price data relates only to the 19 October 2026 session and is separate from the release date.

FY26 financial results

Operating revenue was $386.5 million, down 1.5% from $392.5 million, which the company attributed to revenue mix, including lower licence fees, and foreign exchange. Support & Maintenance revenue was $230.3 million, up 13.4%. Underlying EBITDA was $119.6 million, up 7.2%, with the margin rising 2.5 percentage points to 31.0%, and cash EBITDA was $106.2 million (27.5% margin), up 13.7%.

Underlying NPAT was $48.5 million, up 22.5%, and underlying NPATA was $65.9 million, up 15.9%. Basic EPSa was 32.3 cents. Operating cash flow was $110.4 million, up 52.0%, and the leverage ratio was 0.1 times at year-end.

Segment performance

Communications & Media revenue was $184.2 million, up 7.5%, with an underlying EBITDA margin of 57.6%. The segment welcomed Digitalk in December 2025, which contributed about $11 million of revenue and partly offset a one-off licence fee from Virgin Media O2 in the prior year. Customer renewals included Telefónica Germany, DishHome Nepal and MultiChoice.

Energy & Utilities revenue was $202.3 million, down 8.5%, with an underlying EBITDA margin of 34.9%. The company cited customer caution and delayed decision-making in certain markets. It also stated that Germany underperformed expectations because the smart meter roll-out is slower than expected and some customer churn occurred. Wins and renewals included the City of New Bern, Charlotte County Utilities, Aurora Energy and ENGIE.

AI, acquisitions and cash flow

The company reported that it has built foundations for AI, including an AI Enablement Team and an enterprise knowledge platform called NOVA RAG, and that its focus is shifting from capability building to deployment and commercialisation. On acquisitions, it stated that organic growth remains the priority and that M&A is used selectively, supported by balance sheet capacity.

Corporate costs were $57.0 million, down $2.6 million, and cash conversion was 0.9 times.

Capital management and acquisition approach

The company reported a cash conversion ratio of 0.9 times and said customers made prepayments for multi-year agreement renewals. Capitalised development costs were described as tightly managed. On acquisitions, the release says Hansen targets mission-critical software businesses with recurring revenue, Tier 1 and Tier 2 customer bases and clear intellectual property ownership, and that AI is increasingly shaping how targets are assessed.

Sector backdrop

Industry-specific software for telecommunications operators and utilities typically involves multi-year implementations, licence fees and ongoing support revenue. Revenue can shift between upfront licence fees and recurring consumption-based models, which the release identifies as a transition affecting FY27. Customer decision timing in energy markets can be influenced by regulatory programs such as smart meter roll-outs, and companies with global operations report exposure to currency movements on translation.

Risks shareholders should weigh

The press release and the wider operating environment point to several considerations that shareholders may wish to weigh:

  • Operating revenue declined 1.5% in FY26 and FY27 revenue is expected to be broadly stable, with the company citing the shift from licence revenue to recurring revenue and foreign exchange headwinds.
  • Energy & Utilities revenue fell 8.5% amid customer caution, and the German smart meter roll-out is slower than expected.
  • FY27 underlying EBITDA margin is expected to exceed 26%, compared with 31.0% in FY26, reflecting reduced licence revenue contribution and continued AI and product investment.
  • The company states that near-term customer caution is present although it describes underlying demand as continuing.
  • Acquisitions are part of the strategy and can involve integration and funding considerations.

What's next

For FY27, the company expects broadly stable revenue, Support & Maintenance revenue growth of about 6% to 8% and an underlying EBITDA margin above 26%. The Board describes FY27 as a year focused on improving revenue quality, enhancing scalability and positioning for long-term growth. The release also notes continued investment in AI-enabled capabilities and product innovation, and capacity for selective acquisitions.