Trajan’s Debt Refinancing and Margin Pressures Pose FY26 Challenges
Trajan Holdings delivered solid FY2025 results with revenue up 7.4% to $166.5 million and improved profitability despite transient costs and a biotech syringe loss. The company refinanced debt and set an optimistic FY2026 guidance range.
- 7.4% revenue growth to $166.5 million in FY2025
- nEBITDA improved to $15.5 million despite $3.9 million biotech syringe loss
- Net debt reduced by 10.1% to $29.5 million; net debt to nEBITDA ratio under 2x
- Growth driven across Capital Equipment, Components & Consumables, and Disruptive Technologies
- FY2026 guidance – revenue $170M-$180M, nEBITDA $16M-$19M
Steady Growth Amidst Challenges
Trajan Holdings Limited has reported a commendable financial performance for the fiscal year ending 2025, with group revenue rising 7.4% to $166.5 million. This growth was achieved despite a $3.9 million loss related to biotech syringes, reflecting resilience across all business segments. The company’s operational earnings before interest, taxes, depreciation, and amortisation (nEBITDA) improved to $15.5 million, signaling enhanced profitability even amid transient costs and margin pressures.
Segment Performance and Innovation
Trajan’s diversified portfolio spans Capital Equipment, Components & Consumables, and Disruptive Technologies. The Components & Consumables segment returned to its historical growth trajectory, with emerging product lines such as coated well plates and microfluidic devices growing over 20%. Capital Equipment saw expansion into price-sensitive emerging markets, particularly in Asia-Pacific, although gross margins were somewhat tempered. The Disruptive Technologies segment, notably the microsampling business and the Versiti® portable instrument platform, moved to a breakeven run rate with a growing order book, indicating maturation and commercial promise.
Financial Discipline and Debt Refinancing
Trajan demonstrated strong financial discipline by reducing net debt by 10.1% to $29.5 million and improving the net debt to nEBITDA ratio to below 2x. The company refinanced its debt arrangements with terms that support future growth initiatives. Cash flow generation remained robust, with operating cash flow increasing 14.3% to $12.3 million, despite working capital movements related to inventory and receivables.
Strategic and ESG Initiatives
Beyond financials, Trajan advanced its environmental, social, and governance (ESG) agenda by establishing comprehensive emissions baselines and launching sustainability policies. The company’s ‘Science that benefits people’ purpose underpins its commitment to ethical and responsible growth. Operationally, Trajan continued to adapt to geopolitical volatility through a region-for-region manufacturing strategy, transferring production capabilities across Malaysia, Australia, and the US to mitigate supply chain risks.
Outlook for FY2026
Looking ahead, Trajan provided guidance for FY2026 with expected net revenue between $170 million and $180 million and nEBITDA ranging from $16 million to $19 million. Management acknowledges the current macroeconomic volatility and has prepared a wider guidance range accordingly. The company’s strong starting position, diversified global footprint, and ongoing product innovation position it well to navigate uncertainties and capitalize on growth opportunities.
Bottom Line?
Trajan’s disciplined execution and innovation set the stage for cautious optimism as it navigates a volatile global landscape in FY2026.
Questions in the middle?
- How will geopolitical tensions, especially in the US, impact Trajan’s Capital Equipment segment?
- What is the commercial potential and timeline for scaling the Versiti® platform?
- How will Trajan balance margin pressures in emerging markets with growth ambitions?
