Highlights

  • Trajan Group (ASX:TRJ) reported a stronger second-half FY26 performance, with improved margins and Earnings recovery.
  • Normalised EBITDA increased to $13.2 million for FY26, with H2 performance significantly stronger than H1.
  • Project Neptune initiatives supported cost reductions, operational efficiency and Margin expansion.
  • Management expects mid-single-digit organic Revenue growth and double-digit normalised EBITDA growth in FY27.

Trajan Group Holdings (ASX:TRJ) delivered its FY26 full-year results on 27 August 2026, highlighting a significant improvement in second-half operating performance as cost initiatives and operational changes began supporting earnings recovery.

The analytical science and device company reported a year of transition, with revenue and earnings affected by currency movements, restructuring activities and weaker conditions in parts of its business. However, stronger margins, improved cost control and operational improvements provided momentum heading into FY27.

FY26 Results

For the year ended 30 June 2026, Trajan reported group revenue of $161.4 million, down 3.1% compared with the prior corresponding period.

Normalised EBITDA was $13.2 million, declining 14.7% from $15.5 million in FY25. The result reflected the impact of a weaker first quarter, foreign exchange headwinds and operational transition costs.

However, the second half showed a meaningful improvement. H2 FY26 normalised EBITDA reached $8.1 million, increasing 61.8% compared with H1 FY26.

The company noted that Australian dollar appreciation against key trading currencies affected reported FY26 earnings. Excluding foreign exchange impacts, revenue and normalised EBITDA were broadly within updated expectations.

Gross margin performance improved during the second half, with H2 pro forma gross margin increasing to 40.6% from 37.4% in the first half.

Operational Recovery

Trajan’s FY26 performance reflected a transition period as the company implemented several efficiency initiatives.

Project Neptune remained central to the recovery strategy, targeting improvements across manufacturing, workforce structure and operational processes.

The program contributed to cost reductions through headcount optimisation, Facility rationalisation and improved Manufacturing efficiency.

The company also reduced corporate services costs, while automation initiatives and expanded manufacturing capability in Malaysia supported efforts to create a more efficient operating model.

A global ERP rollout reached its final phase during the year, supporting improved systems alignment and operational visibility.

Business Performance

Trajan’s Business segments performed differently during FY26.

Components and Consumables remained relatively resilient, supported by recurring Demand from analytical science and laboratory applications.

Disruptive Technologies continued progressing, while Capital Equipment faced pressure from weaker North American conditions, reduced research funding activity and broader macroeconomic uncertainty.

The Capital Equipment segment was also affected by the discontinuation of Certus revenue, which reduced FY26 revenue by approximately $2.1 million.

Despite these challenges, the company reported improving order book conditions. The June 2026 capital equipment order book stood at $8.7 million, indicating improving demand momentum.

Growth Drivers

Trajan enters FY27 with several potential growth drivers.

The company’s regional manufacturing strategy remains a key focus, with increased production capability in Malaysia and other locations designed to improve supply-chain flexibility and reduce exposure to external disruptions.

Margin expansion remains another priority. The benefits from Project Neptune, automation initiatives and cost reductions are expected to support further earnings improvement.

The company also continues developing its portfolio of analytical science products and devices used across healthcare, pharmaceutical, food and environmental testing markets.

Recurring consumables revenue provides stability, while capital equipment recovery could provide additional growth as customer Investment conditions improve.

FY27 Outlook

Management provided FY27 expectations following the improved second-half performance.

At current exchange rates, Trajan expects:

  • Mid-single-digit organic revenue growth in FY27.
  • Double-digit normalised EBITDA growth compared with FY26.

The company highlighted continued focus on cost efficiency, margin expansion and capital management.

Key priorities include optimising working capital, improving cash conversion and reducing Debt while maintaining investment in growth opportunities.

Investor Focus

Key areas investors will monitor include:

  • Whether H2 FY26 margin improvements continue into FY27.
  • Progress from Project Neptune and other efficiency initiatives.
  • Recovery in Capital Equipment demand, particularly in North America.
  • Conversion of the order book into recognised revenue.
  • Cash flow generation, Working Capital management and Balance Sheet improvement.

Risks

Trajan remains exposed to several external and operational risks.

Currency movements remain important given the company’s international operations, with Australian dollar appreciation affecting reported earnings.

Demand conditions in research-related markets, particularly in North America, could influence capital equipment sales.

The company is also managing execution risks associated with manufacturing changes, automation initiatives and operational restructuring.

While cost initiatives are expected to deliver benefits, implementation challenges could affect the pace of margin improvement.

Outlook

Trajan enters FY27 with improved operational momentum following a significantly stronger second half of FY26.

The company’s focus on efficiency, manufacturing optimisation and margin expansion has begun translating into improved earnings performance, while management expects further progress in the year ahead.

The key challenge will be converting operational improvements into sustainable revenue growth and stronger cash generation.

For investors following ASX technology and healthcare-related industrial companies, Trajan’s FY26 result highlights a business moving through a transition phase, with FY27 execution likely to determine the strength and durability of its recovery.