Key Highlights

  • Total Revenue rose 79% to US$1,395.9 million for the year to 30 June 2026.
  • CargoWise generated US$756.9 million, up 11%, and e2open contributed US$541.2 million over 11 months.
  • Recurring revenue fell to 95% of the total from 98%, and the underlying EBITDA Margin dropped to 46%.
  • Management is asking investors to judge the company on cost savings, AI adoption and deleveraging.

Why does WiseTech Global (ASX:WTC)'s FY26 result matter more than its headline revenue growth? Because it marks the first full reporting year in which the logistics-software group is a larger, lower-margin and more heavily indebted business, and management is now asking investors to judge it on cost savings, AI adoption and deleveraging rather than on growth alone.

The central development: a bigger group after e2open

In FY26 it added e2open, a supply-chain software business, which contributed 11 months of revenue. Reported total revenue for the year to 30 June 2026 was A$1,395.9 million, up 79% from A$778.7 million. Of that, CargoWise generated A$756.9 million (up 11%), e2open A$541.2 million and other products A$97.9 million.

The Acquisition changes the shape of the company. Recurring Revenue fell to 95% of the total from 98%, and the underlying EBITDA margin dropped to 46% from 53% because e2open earns a lower margin (36% underlying in the period) than CargoWise (53%). That dilution is the key trade-off: scale and a broader customer base in exchange for lower profitability per dollar of revenue and a leveraged balance sheet.

Results and operating performance

Reported EBITDA rose 46% to A$558.4 million, a 40% margin. Underlying EBITDA, which excludes items such as acquisition and restructuring costs, rose 56% to A$644.5 million. Statutory net profit after tax fell 11% to A$178.7 million, which the company attributes to interest and Amortisation linked to the e2open deal, while underlying NPAT rose 29% to A$313.5 million and underlying Earnings Per Share rose 28% to 94.0 US cents.

Cash generation was encouraging. Restructuring costs were A$67.1 million. A final ordinary Dividend of 8.8 US cents per share, fully franked, was declared (a 14% increase), paid on 9 October 2026 to holders on the 14 September record date, a payout of 17% of underlying NPAT.

Market reaction was mixed.

Cost savings and the AI argument

Management reports about A$115 million of annualised run-rate savings: A$64 million from e2open, A$34 million from an AI transformation program (about 1,200 roles reduced globally) and A$17 million from a wider efficiency program. The company says six AI agents are now available inside CargoWise and that it targets up to roughly 50% labour cost savings for logistics service providers using them.

Product Investment continued. Research and Development spending was A$340.7 million, up 29% and 24% of revenue, and the company delivered 1,827 product enhancements, up nearly 50%.

Guidance and balance sheet

For FY27 the company guides to revenue of A$1.48 billion to A$1.54 billion (6% to 10% growth) and underlying EBITDA of A$725 million to A$780 million (12% to 21% growth), with an underlying margin of 49% to 51%. These are management guidance, not outcomes. The low end assumes modest uptake of Value Packs and AI products, and the company notes that changes in industrial production or global trade could affect results.

Net Leverage was 2.7 times at 30 June 2026, with A$2.2 billion of a A$3.0 billion Facility drawn and A$343.5 million of cash. Management targets about 2.2 times by the end of FY27 and below 2.0 times in FY28. For a Business whose earnings are partly tied to global trade volumes, Debt reduction is a central metric to track.

Sector and competitive position

WiseTech operates in logistics execution software, a field with deep switching costs because CargoWise sits at the core of customers' operations. Competitors include other freight and supply-chain software vendors and in-house systems. e2open broadens its reach into supply-chain visibility and planning for large shippers and manufacturers, which is a different customer base from freight forwarders. Cross-selling between the two is not yet demonstrated; CargoWise's own 11% growth is the cleaner read on the core franchise.

Governance

Governance has been rebuilt over the past two years. The Chair and CEO roles were separated in February 2025, Zubin Appoo became permanent chief executive on 28 July 2025, and Raelene Murphy became independent chair on 7 July 2026. Three independent non-executive directors joined in FY26, and Tim Ebbeck joins from 1 September 2026 as chair of the Audit and Risk Committee, giving a board of five independent non-executives and two executives. Governance has been a recurring concern, so progress is worth monitoring.

Risks and developments to monitor

Execution on e2open integration and the remaining savings targets.

Customer uptake of AI agents and Value Packs, which underpins the guidance range.

Global trade volumes and industrial production, which influence transaction-based revenue.

Deleveraging progress against the 2.2 times FY27 target and the interest cost burden.

Restructuring costs and the effect of workforce reductions on product delivery.

Governance developments and regulatory or legal matters.

The first-half FY27 result and any guidance changes.