WiseTech FY26 Revenue Up 79% on e2open Consolidation

WiseTech (ASX:WTC) Global reported FY26 total revenue of US$1,395.9 million, up 79% on FY25, with the increase reflecting the consolidation of e2open, which completed on 4 August 2025 and contributed US$541.2 million of revenue from 11 months. CargoWise revenue rose 11% to US$756.9 million, including US$14.2 million from FY25 and FY26 acquisitions and a US$9.3 million foreign exchange tailwind, partially offset by refinements to the new commercial model in the second half. Reported EBITDA was US$558.4 million, up 46%, at a margin of 40%, down nine percentage points. Guidance EBITDA, which the release defines as reported EBITDA adjusted for the US$20.2 million net cost of the AI Transformation program and the US$7.2 million loss on the divestment of Expedient Software, was US$585.8 million, up 54%, at a 42% margin, both of which the company said exceeded guidance. Underlying EBITDA, which adjusts reported EBITDA for M&A, restructuring and divestment items, was US$644.5 million, up 56%, at a margin of 46%, down seven percentage points, which the company attributed to e2open's lower-margin operating model. Statutory net profit after tax fell 11% to US$178.7 million, reflecting interest and amortisation expense associated with the e2open acquisition partly offset by a lower effective tax rate, while underlying NPAT rose 29% to US$313.5 million on a definition updated during the year to include adjustments for restructuring costs and divestment gains and losses, with the FY25 comparative restated accordingly. All amounts are in U.S. dollars unless otherwise presented.

WiseTech said it delivered approximately US$115 million of total annualised run-rate cost savings in FY26, comprising US$64 million at e2open, US$34 million from an AI Transformation program in Product & Development and Customer Service that reduced roles by about 1,200 globally, and US$17 million from an efficiency program. Operating cash flow was US$564.0 million, up 29%, free cash flow US$410.7 million, up 43%, and underlying free cash flow US$489.6 million, up 67%. The net leverage ratio was 2.7 times at 30 June 2026, below the previously guided level of approximately 3.0 times, with US$2.2 billion of the company's US$3.0 billion debt facility outstanding and a cash balance of US$343.5 million. Research and development investment rose 29% to US$340.7 million, equal to 24% of total revenue. More than 95% of CargoWise customers are on the CargoWise Value Packs commercial model launched in December 2025, and the company reported a roughly 55% increase in new small and medium enterprise signings and a roughly 30% increase in overall new signings, measured as CVP signings from 1 December 2025 to 30 June 2026 against seat and transaction licence signings in the same period of FY25. The Board determined a fully franked final ordinary dividend of 8.8 US cents per share, up 14%, representing a payout ratio of 17% of underlying NPAT, which the release says continues to be calculated on a like-for-like basis and is reflected in a lower payout ratio. For FY27 WiseTech anticipates revenue of US$1.48 billion to US$1.54 billion, growth of 6% to 10%, underlying EBITDA of US$725 million to US$780 million, growth of 12% to 21%, and an underlying EBITDA margin of 49% to 51%, guidance provided on the basis that market conditions do not materially change.