WiseTech Global Limited (ASX:WTC) develops software for logistics, global trade and supply-chain industries. FY26 was transformed by the Acquisition of e2open, which substantially expanded group Revenue and the company’s addressable markets. WiseTech now enters FY27 focused on integrating the acquired business, expanding margins, migrating customers to its CargoWise Value Packs model and reducing leverage.

Revenue Rises 79%

Total revenue increased 79% to US$1.3959 billion in FY26.

The result included an 11-month contribution from e2open following completion of the acquisition in August 2025.

Recurring revenue represented 95% of group revenue.

CargoWise revenue increased 11% to US$756.9 million, supported by customer growth, global freight-forwarder rollouts, acquisitions and the introduction of CargoWise Value Packs.

e2open Contributes US$541.2 Million

e2open contributed US$541.2 million of FY26 revenue.

The acquisition substantially changed WiseTech’s scale and expanded the group beyond its traditional freight-forwarding software market into broader supply-chain orchestration.

WiseTech is progressively aligning e2open’s products, teams and operating processes with its own model, while prioritising higher-quality Recurring Revenue and improved profitability.

Underlying EBITDA Reaches US$644.5 Million

Reported EBITDA increased 46% to US$558.4 million, with the reported EBITDA Margin declining to 40%.

Underlying EBITDA increased 56% to US$644.5 million, representing a 46% margin.

The lower margin compared with FY25 primarily reflected the consolidation of e2open, which entered WiseTech with a lower-margin operating structure.

Management is targeting substantial margin improvement as integration progresses.

Statutory Profit Declines

Underlying NPAT increased 29% to US$313.5 million.

Statutory NPAT, however, declined 11% to US$178.7 million.

The difference reflected acquisition-related interest and Amortisation expenses, restructuring costs and other items excluded from WiseTech’s underlying Earnings measure.

The e2open acquisition therefore lifted revenue and underlying earnings while adding costs that weighed on statutory profitability.

Cash Flow Continues to Expand

Operating Cash Flow rose 29% to US$564.0 million.

Free cash flow increased 43% to US$410.7 million, while underlying free cash flow rose 67% to US$489.6 million.

The cash generation is important because WiseTech funded its largest acquisition using substantial debt.

At 30 June 2026, US$2.2 billion of its US$3.0 billion Debt Facility remained outstanding.

Leverage Falls Faster Than Expected

WiseTech ended FY26 with a net Leverage ratio of 2.7 times.

This was better than its previous target of approximately 3.0 times.

Management now expects leverage to decline to around 2.2 times by the end of FY27 and below 2.0 times during FY28.

Continued free cash generation and earnings growth are therefore important to rebuilding balance-sheet capacity after the e2open transaction.

Cost Savings Reach US$115 Million

WiseTech delivered approximately US$115 million of annualised run-rate cost savings during FY26.

This included US$64 million of savings at e2open, exceeding its original FY27 synergy target of US$50 million.

The AI Transformation program contributed another US$34 million, while earlier efficiency initiatives generated approximately US$17 million.

These savings are central to the company’s FY27 margin expansion plans.

CargoWise Value Packs Gain Adoption

More than 95% of CargoWise customers had moved onto CargoWise Value Packs by the end of FY26.

Since introduction of the new commercial model, new SME customer signings increased by approximately 55%, while overall new-customer signings rose around 30%.

WiseTech plans to migrate the remaining larger commitment-based customers during FY27, potentially supporting further CargoWise revenue growth.

AI Transformation Changes the Cost Base

WiseTech is also using artificial intelligence across product development, Customer Service and internal operations.

Its FY26 AI Transformation program reduced approximately 1,200 roles globally and generated US$34 million of annualised run-rate EBITDA savings.

The company is simultaneously embedding AI tools into CargoWise, aiming to automate complex logistics workflows and increase the value delivered through its software platform.

FY27 Guidance Targets Margin Expansion

WiseTech expects FY27 revenue of US$1.48 billion to US$1.54 billion, representing growth of 6%–10%.

Underlying EBITDA is guided to US$725 million to US$780 million, up 12%–21%.

The underlying EBITDA margin is expected to increase to 49%–51%.

The guidance assumes continued CargoWise growth, further e2open efficiency gains and adoption of new commercial and AI-related initiatives.

Governance Structure Changes

Zubin Appoo became permanent Chief Executive Officer in July 2025.

WiseTech subsequently appointed Raelene Murphy as independent Board Chair effective July 2026.

The company also added independent non-executive directors during FY26.

These changes separated the Chair and CEO roles and increased independent representation as WiseTech manages a substantially larger and more complex global business.

Dividend Increases

WiseTech declared a fully franked final Dividend of 8.8 US cents per share.

This represents a 14% increase from the FY25 final dividend.

The dividend is payable on 9 October 2026 and represents 17% of underlying NPAT.

Balance-sheet deleveraging remains an important Capital priority following the e2open acquisition.

Key Risks and Areas to Watch

The main risks relate to e2open integration, execution of cost reductions and slower-than-expected CargoWise growth.

WiseTech must also manage elevated debt while continuing substantial Investment in product development.

FY27 revenue growth is expected to moderate significantly from the acquisition-driven FY26 rate.

Progress on e2open margins, CargoWise Value Pack adoption, free cash flow and the 2.2-times leverage target will therefore be important indicators.