Can WiseTech Sustain Margin Gains as It Integrates $3 Billion e2open Acquisition?
WiseTech Global reported robust FY25 results with a 14% revenue increase and a 53% EBITDA margin, boosted by strong CargoWise growth and the strategic acquisition of e2open. The company is poised to accelerate growth through AI innovations and a new commercial model.
- Total revenue up 14% to $778.7 million
- CargoWise revenue grows 18%, driven by existing customers and new rollouts
- EBITDA excluding e2open M&A costs rises 26% with margin expanding 5 percentage points to 53%
- Strategic acquisition of e2open expands addressable market in $11+ trillion logistics sector
- FY26 guidance projects up to 85% revenue growth and 53% EBITDA growth
Strong Financial Performance and Margin Expansion
WiseTech Global has delivered a compelling set of financial results for the fiscal year ended June 30, 2025, with total revenue climbing 14% to $778.7 million. The company’s flagship product suite, CargoWise, saw an 18% revenue increase, largely fueled by deeper adoption among existing customers and successful rollouts with Large Global Freight Forwarders (LGFFs).
Notably, EBITDA excluding costs related to the recent e2open acquisition surged 26%, with the EBITDA margin expanding by five percentage points to an impressive 53%. This margin expansion underscores WiseTech’s operational leverage and disciplined cost management, even as it continues to invest heavily in product development.
Strategic Acquisition and Market Expansion
On August 4, 2025, WiseTech completed the acquisition of e2open, a leading U.S.-based cloud trade and supply chain software provider. This transformative deal significantly broadens WiseTech’s total addressable market within the $11+ trillion global logistics industry, adding deep domain expertise and complementary product offerings. The integration is progressing on schedule, positioning WiseTech to capitalize on new growth avenues.
The acquisition also enhances WiseTech’s container visibility capabilities, with e2open and INTTRA adding nearly 40 million containers to its ecosystem. This expanded data set is expected to amplify the value of WiseTech’s Container Transport Optimization (CTO) product, which is on track for initial revenue generation in the first half of FY26.
Innovation and Commercial Model Evolution
WiseTech continues to invest aggressively in research and development, increasing R&D spend by 9% to $263.8 million, representing 34% of total revenue. This investment has yielded over 1,200 product enhancements in FY25 alone, with a focus on breakthrough offerings like CargoWise Next and CTO.
The company is also rolling out a new CargoWise commercial model, shifting from a seat-plus-transaction pricing to a single all-inclusive per-transaction fee. This streamlined approach is designed to accelerate product adoption and unlock additional value through AI-driven workflow and management capabilities, further embedding CargoWise into global supply chains.
Robust Cash Flow and Dividend Growth
WiseTech’s operating cash flow rose 25% to $436.5 million, with free cash flow up 31% to $287 million, reflecting the highly cash-generative nature of its business. The company declared a final dividend of 7.7 US cents per share, a 24% increase over the prior year, signaling confidence in its ongoing financial strength and growth prospects.
Looking Ahead
For FY26, WiseTech projects revenue between $1.39 billion and $1.44 billion, representing growth of up to 85%, and EBITDA between $550 million and $585 million, up to 53% higher than FY25. The anticipated margin dilution from e2open’s initial consolidation is expected to be offset by continued organic growth and operational efficiencies.
CEO Zubin Appoo highlighted the company’s strategic focus on product innovation, market penetration, and profitability, emphasizing the transformative potential of AI and the expanded ecosystem post-e2open. WiseTech appears well-positioned to lead the next wave of technology-driven disruption in global logistics.
Bottom Line?
WiseTech’s FY25 results set a strong foundation for accelerated growth, but successful integration of e2open and AI commercialization will be critical to sustaining momentum.
Questions in the middle?
- How smoothly will WiseTech integrate e2open’s operations and culture?
- What impact will the new CargoWise commercial model have on customer retention and acquisition?
- How quickly can WiseTech monetize its AI-driven Container Transport Optimization product?