Trajan Group Holdings (ASX:TRJ) Reports 14.7% Fall in Full-Year EBITDA Despite Second-Half Recovery

Sonal Goyal

27 August 2026 11:42 AM AEST

Trajan Group Holdings (ASX:TRJ) Reports 14.7% Fall in Full-Year EBITDA Despite Second-Half Recovery

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Key Highlights

Full-year Group normalised EBITDA (nEBITDA) fell 14.7% to $13.2 million, while full-year Revenue declined 3.1% to $161.4 million.
H2 FY26 nEBITDA of $8.1 million was up 61.8% on H1 FY26's $5.0 million, reflecting the impact of Project Neptune cost initiatives.
H2 proforma gross Margin improved 3.2 percentage points to 40.6%, up from 37.4% in H1 FY26.
FY27 guidance points to mid-single digit organic revenue growth and double-digit nEBITDA growth over the prior comparable period.

Trajan Group Holdings Limited (ASX:TRJ), a global analytical science and device company, reported its FY26 results with full-year Group revenue of $161.4 million, down 3.1% on the prior corresponding period's $166.5 million. Full-year Group nEBITDA declined 14.7% to $13.2 million from $15.5 million in FY25. The company said the result reflected a difficult opening quarter that created a challenging starting point for the year, though performance improved from the second quarter onward.

The company noted that appreciation of the Australian dollar against key trading currencies during the second half affected the translation of overseas Earnings into reported results, with an estimated impact of approximately $5.0 million in revenue and $2.4 million in nEBITDA. Excluding this foreign exchange impact in the second half, revenue and nEBITDA were within 2.5% of updated guidance provided in May 2026.

Second-Half Margin Improvement Gains Traction

Trajan reported a marked improvement in second-half performance relative to the first half. H2 FY26 nEBITDA was $8.1 million, up 61.8% on H1 FY26's $5.0 million, and on a currency-adjusted basis would have risen to $10.5 million. H2 proforma gross margin improved to 40.6%, up 3.2 percentage points from 37.4% in H1 FY26, with the company estimating that adjusting for AUD appreciation would have produced an estimated proforma gross margin of approximately 41.2% at H1 exchange rates.

The company attributed the improvement to margin expansion initiatives under its Project Neptune program, including workforce resizing and cost control measures, footprint rationalisation with lower ongoing Facility costs in Connecticut, continued automation of Manufacturing processes, increased operational transfer to Malaysia, and the final phase of a global ERP rollout including Germany. Project Neptune cost reductions in headcount and facilities delivered a $1.2 million uplift in the second half, while a reduction in Corporate Services headcount achieved a further $1.2 million uplift.

Segment Performance and Capital Position

CEO Stephen Tomisich said Components and Consumables remained resilient during the year, Disruptive Technologies continued to advance, while Capital Equipment was impacted by ongoing weakness in North America tied to funding conditions and global food market volatility. The Capital Equipment segment also experienced the discontinuation of Certus revenue, resulting in lost revenue of approximately $2.1 million in FY26. The company noted that underlying Demand and order book trends are returning to previous levels, with the order book at 30 June 2026 standing at $8.7 million.

Capital expenditure was reduced to $3.4 million in FY26 from $4.1 million in FY25, with the company maintaining a stable cash balance of $12.6 million. Interim CFO Simon Billingham said the year-end cash position, combined with second-half performance, provides confidence in the company's ability to invest in operational priorities while maintaining financial discipline.

FY27 Priorities and Guidance

Given the momentum seen since the second quarter of FY26, and at current exchange rates, Trajan expects mid-single digit organic revenue growth and double-digit nEBITDA growth in FY27 over the prior comparable period. The company outlined three priorities for FY27: cost efficiency, building on Project Neptune initiatives including process automation, US Supply chain optimisation, ERP integration and expanded manufacturing capacity in Malaysia; margin expansion, supported by more stable trading conditions and embedded operational initiatives; and capital management, with a focus on inventory optimisation, Debt reduction and disciplined capital allocation to improve cash conversion.

Mr Billingham said Trajan's key financial priorities for FY27 are to further optimise Working Capital and strengthen capital management through improved cash conversion and debt reduction, with the aim of reinforcing the Balance Sheet and increasing financial flexibility. Mr Tomisich said Trajan enters FY27 with a more efficient operating base, improved systems alignment and clear opportunities to build on the momentum generated in the second half of FY26.

Conclusion

Trajan's FY26 results illustrate a year of two distinct halves, with a weak opening quarter and adverse currency movements weighing on full-year revenue and earnings, offset by a pronounced recovery in margins and profitability through the second half as Project Neptune cost initiatives took hold. With guidance pointing to renewed organic revenue growth and double-digit nEBITDA growth in FY27, the company's near-term performance will likely hinge on whether the cost efficiencies and margin gains delivered in the second half can be sustained across a full financial year.

FAQs

Q: Did Trajan's revenue grow in FY26?

A: No, full-year Group revenue declined 3.1% to $161.4 million from $166.5 million in FY25.

Q: How much did Trajan's nEBITDA fall in FY26?

A: Full-year Group nEBITDA fell 14.7% to $13.2 million, though H2 FY26 nEBITDA of $8.1 million was up 61.8% on the first half.

Q: What impact did currency movements have on Trajan's results?

A: Appreciation of the Australian dollar against key trading currencies in H2 FY26 affected reported earnings by an estimated $5.0 million in revenue and $2.4 million in nEBITDA.

Q: What is Project Neptune?

A: Project Neptune is Trajan's cost-efficiency program encompassing workforce resizing, footprint rationalisation, manufacturing automation, increased operations in Malaysia, and a global ERP rollout, which delivered a combined $2.4 million uplift in H2 FY26.

Q: What is Trajan's guidance for FY27?

A: Trajan expects mid-single digit organic revenue growth and double-digit nEBITDA growth in FY27 over the prior comparable period, at current exchange rates.

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