Record FY26 Revenue Surge
WiseTech reports record FY26 revenue driven by e2open acquisition and AI growth.
Anonymous
Key Points
1
WiseTech's net leverage ratio improved to 2.7x by the end of FY26, strengthening the balance sheet and financial flexibility.
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Underlying NPAT rose 29% to US$313.5 million, signaling earnings growth despite a 11% drop in statutory NPAT due to acquisition-related interest and amortisation.
3
The company posted an Underlying Rule of 40 of 114%, highlighting a strong mix of growth and cash generation.
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e2open contributed US$541.2 million in revenue over 11 months of consolidation since the acquisition completed on 4 August 2025.
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Governance enhancements were reinforced by a board revamp, including appointing a permanent CEO and moving to an independent chair model.
WiseTech Global delivered a transformational FY26, with total revenue surging 79% to US$1.396 billion, largely fueled by its e2open acquisition completed in August 2025. TipRanks reported that the company exceeded its own guidance, posting underlying EBITDA of US$644.5 million and underlying NPAT up 29% to US$313.5 million, signaling strong earnings growth beneath acquisition costs.
The e2open integration added US$541.2 million in revenue over 11 months, while CargoWise grew 11% and rolled out Value Packs to over 95% of customers. Investing.com noted that statutory net profit fell 11% to US$178.7 million due to interest and amortisation tied to the deal, though the company declared a final dividend of 8.8 US cents per share and improved its net leverage ratio to 2.7x.
E2open Transforms Revenue Mix and Scale
The e2open acquisition, which closed on August 4, 2025, fundamentally reshaped WiseTech's revenue base. Over 11 months of consolidation, e2open contributed US$541.2 million—accounting for roughly 39% of the year's total growth. TipRanks highlighted that this deal-driven expansion was coupled with organic CargoWise growth, positioning WiseTech as a larger player in logistics software.
Beyond raw revenue, the integration unlocked operational synergies. CargoWise customers adopted Value Packs at high velocity, with sign-ups reaching over 95% of the customer base. This uptake was especially strong among small-to-medium enterprises (SMEs), signaling successful cross-selling and product-market fit in a competitive segment.
Profitability Masks Mixed Earnings Story
WiseThat underlying earnings rose 29% to US$313.5 million masks a divergent statutory picture. Investing.com explained that reported net profit fell 11% to US$178.7 million due to higher interest expense and amortisation from the acquisition. The gap reflects the financial engineering inherent in large deals—strong operational performance offset by balance sheet strain.
Margin health remained robust. The company posted a 46% underlying EBITDA margin and a 40% reported EBITDA margin, with MarketWatch noting that the company lifted annual earnings by 46%. WiseTech's Rule of 40 score of 114%—combining growth and free cash flow generation—underscores the blend of expansion and capital discipline.
Cash Generation and Shareholder Returns
WiseTech generated US$410.7 million in free cash flow, bolstering financial flexibility despite acquisition costs. The company's net leverage ratio improved to 2.7x by end-FY26, down from higher post-deal levels, signaling faster-than-expected deleveraging. TipRanks noted that the improved balance sheet metric reflects disciplined cash management and confidence in near-term profitability.
Management reinforced capital returns, announcing a final dividend of 8.8 US cents per share for the June 2026 half-year. TipRanks reported that this ongoing payout program signals the board's conviction in sustainable cash generation and shareholder value creation despite the integration headwinds.
AI and Governance Drive Future Growth Trajectory
CEO Zubin Appoo called FY26 transformational, citing large-scale AI and integration initiatives as growth engines for FY27 and beyond. The company also advanced strategic moves: acquiring FRDM.ai to bolster its VerifyWise compliance product and securing New Zealand customs system arrangements. These moves position WiseTech to extract deeper value from its expanded platform.
Governance enhancements reinforced the narrative. TipRanks highlighted that WiseTech completed a board revamp, appointing a permanent CEO and transitioning to an independent chair model. These structural changes suggest confidence in execution and a tighter institutional framework to navigate the complex e2open integration while pursuing organic growth.
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