WiseTech Global Limited

WiseTech reported first-half FY '26 total revenue of $672 million, up 76% year over year, driven in part by 5 months of e2open contribution. Gross profit was up 61% year over year, while gross margin was 79%, down 7 percentage points, largely because of e2open’s lower-margin profile. EBITDA increased 31% to $252.1 million, with an EBITDA margin of 38%; organic EBITDA margin was 51%, flat year over year. Underlying NPAT was $114.5 million, up 2%, and underlying EPS was $0.343 per share, also up 2%; free cash flow rose 24% to $153.6 million. CargoWise revenue was $372.4 million, up 12% reported and 9% organic. Management reaffirmed FY '26 guidance, said CargoWise revenue in 1H/2H is expected to be in line with FY '25, and continued to expect FY '26 CargoWise revenue growth of 14% to 21% (as stated in Q&A). They also said the new restructuring program is not expected to be material to FY '26 outcomes because execution costs likely offset savings in the year.

Zubin Appoo framed the quarter as disciplined execution and an inflection point in WiseTech’s AI strategy. He emphasized that AI is being embedded into product development, customer workflows, and the commercial model, arguing that seat-based pricing is obsolete in an AI-enabled world and that Value Packs better align pricing to transactional value. He was confident that the company’s network, domain expertise, and embedded workflows create a moat that outside AI tools cannot easily replicate.

Caroline Pham focused on the financial effects of e2open and the ongoing restructuring while highlighting strong underlying performance. She said gross profit margin was 79% due to e2open’s lower-margin services mix, but excluding e2open margins were 87%; EBITDA margin was 38% reported and 51% organic. She noted net financing costs of $68.3 million, cash of $358.4 million at 31 December 2025, net leverage of 3.2x, and a path toward approximately 3x by end-FY '26, 2.5x by end-FY '27, and below 2x by August 2028. She also highlighted $231.7 million of operating cash flow, 92% cash conversion, and that the first phase of restructuring had already delivered the FY '26 net cost-out target of approximately $9 million ahead of plan.

Analysts pressed management on whether the CargoWise guidance implied conservatism, given Value Pack rollouts and expected ARPU uplift; Caroline said there was no conservatism and that 1H had run slightly ahead, while the second-half mix depends on timing and take-up, especially among larger customers on long-term agreements. Questions also focused on whether WiseTech still plans to return to margins above 50% after the new headcount reductions; Caroline said yes, that was always the goal, and the new restructuring is additive rather than required to achieve it. Analysts asked about customer churn risk from large customers building their own systems and about AI/token cost offsets; management said customer conversations are positive, the new commercial model and embedded AI should make CargoWise more valuable, and AI costs are not expected to be material in FY '26.