WiseTech Global Ltd (ASX: WTC) has announced a significant leap in its financial performance for Fiscal Year 2026, with total revenue surging by 79% to US$1,395.9 million. This impressive growth was substantially fueled by the strategic acquisition of e2open and notable advancements in artificial intelligence (AI) productivity within the company’s operations. The company also reported a robust increase in its earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance.

Financial Highlights for FY26

WiseTech Global’s fiscal year-end results showcase a period of substantial expansion and operational enhancement. Key financial metrics reported include:

• Total Revenue: Increased by 79% to US$1,395.9 million, meeting the company’s guidance.
• Guidance EBITDA: Rose by 54% to US$585.8 million.
• Reported EBITDA: Grew by 46% to US$558.4 million.
• Underlying EBITDA: Saw a 56% increase, reaching US$644.5 million, with a healthy margin of 46%.
• Underlying Net Profit After Tax (NPAT): Climbed 29% to US$313.5 million, although statutory NPAT decreased by 11% to US$178.7 million.
• Final Dividend: The fully franked final dividend was boosted by 14% to 8.8 US cents per share.
• Free Cash Flow: Experienced a 43% rise to US$410.7 million, with underlying free cash flow up by 67% to US$489.6 million.

Strategic Drivers of Growth

The acquisition of e2open proved to be a pivotal move for WiseTech Global, contributing US$541.2 million to the company’s revenue and significantly expanding its market reach. Beyond acquisitions, WiseTech has been actively implementing cost-saving initiatives, which have yielded approximately US$115 million in annualized savings. A key component of these savings comes from the integration of AI technologies into various operational processes, enhancing efficiency and productivity.

The company’s commercial model transformation also continues to gain traction. More than 95% of WiseTech’s flagship CargoWise customers have now transitioned to the new Value Packs commercial model. This shift is particularly beneficial for small and medium-sized enterprise (SME) customers and has been instrumental in driving new customer acquisitions.

Further strategic enhancements include the acquisition of FRDM.ai, which bolsters WiseTech’s compliance offerings through its VerifyWise solution. The company has also been focused on innovation, launching new initiatives designed to streamline global trade and logistics.

Leadership and Governance Updates

In parallel with its financial and operational advancements, WiseTech Global has undertaken structural changes to strengthen its corporate governance. These changes include the appointment of a new permanent Chief Executive Officer (CEO) and a transition to an independent Chair model, signaling a commitment to robust oversight and strategic direction.

Management’s Perspective on the Transformational Year

Zubin Appoo, CEO of WiseTech Global, described the past fiscal year as “transformational.” He highlighted the strategic importance of the e2open acquisition in broadening the company’s market presence and the successful rollout of the new commercial model, with a high adoption rate among CargoWise customers. Appoo also emphasized the company’s proactive adoption of AI across its operations.

He further noted significant achievements in securing government agreements, such as delivering customs solutions for the New Zealand Customs Service and its trade community. The integration of FRDM.ai into the VerifyWise solution was cited as a key step in accelerating supply chain compliance for a wide range of businesses, including exporters, importers, and financial institutions. Appoo also pointed to the ongoing development of the CargoWise AI Workflow Engine and AI Management Engine, aimed at reducing the costs associated with global trade and logistics for their clientele.

Outlook for Fiscal Year 2027

Looking ahead to FY27, WiseTech Global has projected continued growth. The company anticipates total revenue to increase between 6% and 10%, translating to US$1.48 billion to US$1.54 billion. Underlying EBITDA is expected to grow by 12% to 21%, with a projected margin improvement to between 49% and 51%.

Management’s strategic focus for the upcoming year will remain on several key areas: successfully integrating the e2open acquisition, further expanding the new commercial model, accelerating AI-driven product development, and actively working towards margin expansion and debt reduction. Specific priorities for FY27 include migrating remaining legacy customers to the Value Packs model, launching new AI-powered solutions, delivering additional regulatory solutions, and maintaining a strong commitment to research and development (R&D).

WiseTech Global reaffirms its dedication to operational discipline and enhancing revenue quality, underpinned by continuous innovation and product enhancement initiatives. Despite a challenging market over the past year, where the WiseTech Global share price saw a decline of over 60% from its peak, the company’s recent performance and forward-looking strategy indicate a renewed focus on growth and value creation.