Trajan Opens FY27 with Stronger Revenue and Lower Debt

FY27 Starts with Higher Revenue and Lower Debt

Trajan Scientific and Medical has opened FY27 with a more encouraging operating picture after a difficult full year, reporting a 3.8% increase in net revenue for the first quarter and quarterly nEBITDA of approximately A$3.5 million. Management accounts also show net debt falling by A$1.6 million during the quarter, while rolling 12-month nEBITDA reached A$16.2 million.

The update marks a sharper contrast with FY26, when reported revenue declined 3.1% to A$161.4 million and nEBITDA fell 14.7% to A$13.2 million. The company attributed much of the revenue pressure to Australian dollar appreciation, with roughly 85% of revenue generated in US dollars and euros. The earlier AUD appreciation warning had already highlighted the currency sensitivity, but the latest presentation says the H2 impact was approximately A$5 million.

Cost Actions Lifted Second-Half Profitability

Trajan says its recovery began to show in the second half of FY26. H2 nEBITDA rose to A$8.1 million from A$5.0 million in the first half, while group H2 nEBITDA reached A$10.5 million on a fixed-currency basis. Pro forma gross margin improved to 40.6% in H2, up 3.2 percentage points from H1.

The company credited A$1.2 million of H2 uplift to Project Neptune cost reductions in headcount and facilities, a further A$1.2 million to reduced corporate-services headcount, and about A$0.9 million to supply-chain initiatives. Pricing actions introduced on 1 January 2026 also supported the margin improvement. The Project Neptune cost program was previously identified as a source of cost and margin benefits.

Components and Consumables Lead the New-Year Growth

Growth in FY27’s first quarter was led by Trajan’s largest segment, Components and Consumables, where net revenue increased 5.2%. Disruptive Technologies rose 12.7%, although it remains a very small contributor to group revenue. Capital Equipment was still under pressure, with revenue down 1.2%.

Management said annualised revenue in Components and Consumables, measured monthly at fixed exchange rates, indicated that growth had returned to normal levels after the destocking period that followed March 2024. That measure is not the same as reported group revenue, but it provides the company’s preferred evidence that demand in its largest business is recovering.

FY27 Guidance Leaves Execution as the Test

Trajan expects mid-single-digit organic revenue growth and double-digit nEBITDA growth in FY27. It plans to provide more specific revenue and nEBITDA targets at its annual general meeting on 28 October 2026.

The guidance is positive in direction but still broad, and the Q1 figures are unaudited management accounts. The next test will be whether the H2 cost gains, pricing actions and improved Components and Consumables demand can offset currency movements and the continuing weakness in Capital Equipment without relying on favourable exchange rates.