Trajan’s Q2 Bounce Fuels Confidence Despite H1 EBITDA Dip
Trajan Group Holdings reports a mixed first half for FY26 with soft Q1 performance but a strong Q2 rebound, maintaining full-year guidance amid tariff and cost pressures.
- 3.8% revenue growth in FY26 H1 to $84.1 million
- Normalized EBITDA down $2.9 million due to FX, freight, and tariff timing
- Q2 delivers record revenue of $45.4 million and EBITDA improvement
- Cost-cutting and pricing actions to boost margins in H2
- Full-year FY26 guidance maintained, revenue over $170 million, EBITDA over $16 million
A Tale of Two Quarters
Trajan Group Holdings Limited (ASX – TRJ), a global player in analytical science and life sciences devices, has delivered a trading update ahead of its FY26 half-year results that paints a picture of resilience amid challenges. The company reported a soft start to the year with a subdued first quarter, particularly in its Capital Equipment segment, but a robust recovery in the second quarter has restored optimism for the full year.
Group net revenue for the first half of FY26 is expected to reach $84.1 million, marking a 3.8% increase over the previous corresponding period. However, normalized EBITDA (nEBITDA) is forecast to decline by $2.9 million to $5.0 million, impacted by foreign exchange fluctuations, increased freight costs, and timing differences related to US tariff recoveries.
Q2 Recovery and Operational Adjustments
The second quarter proved pivotal, delivering record group revenue of $45.4 million and a significant EBITDA improvement from $0.5 million in Q1 to $4.5 million. This momentum is further supported by a strengthened Capital Equipment order book, which grew by $2.8 million during the half to nearly $11 million heading into the second half.
Trajan’s management has been proactive in addressing cost pressures through Project Neptune, which implemented headcount and facilities reductions late last year, expected to save approximately $0.8 million in the second half. Additionally, pricing actions effective from January 2026 are anticipated to contribute an extra $1.3 million to the bottom line.
Navigating Tariffs and Market Volatility
CEO Stephen Tomisich highlighted the company’s strategic advantage in maintaining a global footprint with an “in region for region” approach. This flexibility has allowed Trajan to mitigate the impact of tariffs more swiftly than competitors, a factor praised by key customers. While the Capital Equipment segment experienced volatility, the Components & Consumables business demonstrated steady resilience, delivering 6.1% revenue growth in the half.
Looking ahead, Trajan remains confident in achieving its full-year guidance of exceeding $170 million in net revenue and $16 million in normalized EBITDA, despite the complexities of the current operating environment. The company’s focus on margin expansion and operational efficiency will be critical as it navigates the remainder of FY26.
Bottom Line?
Trajan’s strong Q2 and strategic cost measures set the stage for a potentially solid FY26 finish, but tariff and market dynamics warrant close watch.
Questions in the middle?
- Will the improved Q2 EBITDA momentum sustain through the second half?
- How will ongoing tariff and freight cost fluctuations impact profitability beyond FY26?
- Can the Capital Equipment segment fully recover and contribute to margin growth?
