WiseTech Global Revenue Jumps 79% After e2open Deal, but Shares Slide on Profit Miss and FY27 Outlook

WiseTech Global reported a 79% jump in full-year revenue after adding e2open to the group, but the scale of the acquisition did not translate into higher statutory profit. Revenue reached $1.3959 billion for the year ended June 30, 2026, while statutory net profit after tax fell 11% to $178.7 million as interest and amortization linked to e2open weighed on earnings.

The Australian logistics-software group also set FY27 revenue guidance of $1.48 billion to $1.54 billion, implying growth of 6% to 10% from the enlarged FY26 base. Reuters reported that WiseTech shares closed 10.1% lower on Wednesday after the results, with the profit result below a Visible Alpha consensus estimate cited by Jefferies and CargoWise revenue also coming in slightly below that estimate.

e2open supplies most of the revenue step-up

WiseTech’s FY26 results announcement shows how much the acquisition changed the group’s financial profile. e2open contributed $541.2 million of revenue for 11 months after WiseTech completed the acquisition in August 2025. CargoWise, the company’s core logistics execution platform, generated $756.9 million, up 11% from FY25, while non-CargoWise revenue was $97.9 million.

The $1.3959 billion total landed within WiseTech’s FY26 guidance range of $1.39 billion to $1.44 billion. Most of the $617.2 million year-on-year increase came from consolidating e2open rather than from expansion in the existing business. CargoWise’s 11% increase also finished below the roughly 14% to 21% growth assumption WiseTech had reaffirmed with its first-half results in February.

Margins fell even as EBITDA increased. Reported EBITDA rose 46% to $558.4 million, but the reported margin declined to 40% from 49% a year earlier because e2open entered the group with a lower-margin operating model and WiseTech also booked restructuring costs and a loss on the Expedient Software divestment. Underlying EBITDA, which adjusts for acquisition, restructuring and divestment items under WiseTech’s definition, increased 56% to $644.5 million. The underlying margin was 46%, down from 53% in FY25.

On the basis used for the company’s February guidance, EBITDA was $585.8 million, just above the top of the $550 million to $585 million range, with a 42% margin. That measure adjusts reported EBITDA for the net cost of WiseTech’s AI Transformation program and the Expedient divestment loss. The distinction matters because the operating-earnings increase sits alongside a decline in statutory profit, which absorbed the financing and acquired-amortization burden from e2open.

Cost savings arrive faster than planned, while debt starts to fall

The integration produced savings faster than WiseTech had initially targeted. The group said it reached $64 million of annualized run-rate savings at e2open by the end of FY26, already above its $50 million FY27 cost-synergy target. e2open’s underlying EBITDA margin reached 36%, eight percentage points above the FY25 pro forma level. WiseTech is shifting the business toward a product-led model and away from lower-margin legacy revenue, including a planned reduction in professional services.

Group-wide annualized run-rate savings totaled about $115 million. That included the $64 million at e2open, $34 million from the FY26 AI Transformation program and another $17 million from a broader efficiency program. The AI restructuring reduced roughly 1,200 roles globally during the year, according to the company.

Cash generation improved despite the lower statutory profit. Operating cash flow increased 29% to $564.0 million, free cash flow rose 43% to $410.7 million, and underlying free cash flow advanced 67% to $489.6 million. WiseTech ended June with $2.2 billion outstanding under its $3.0 billion debt facility and $343.5 million of cash.

Net leverage stood at 2.7 times, better than the approximately 3.0 times level WiseTech had previously guided to for the year end. Management is targeting about 2.2 times by the end of FY27 and less than 2.0 times in FY28. The leverage path is important because WiseTech’s $2.1 billion enterprise-value purchase of e2open was debt funded, and the higher borrowing load was one reason statutory profit fell even as revenue and EBITDA climbed.

Buying e2open also broadened WiseTech beyond freight-forwarding software. The company says its network now reaches more than 500,000 connected enterprises across manufacturing, logistics, distribution and other parts of the supply chain. At the same time, the group is still trying to deepen adoption of CargoWise Value Packs, the commercial model introduced in December 2025. More than 95% of CargoWise customers were on the new model by June, with the remaining large commitment customers expected to migrate during FY27.

FY27 guidance puts the focus back on organic execution

For FY27, WiseTech expects revenue of $1.48 billion to $1.54 billion, up 6% to 10%, while underlying EBITDA is forecast at $725 million to $780 million, an increase of 12% to 21%. The company expects the underlying EBITDA margin to rise to 49% to 51%, three to five percentage points above FY26. Management is therefore guiding to a much slower top-line growth rate after the acquisition-led step-up, but it expects profits to grow faster than revenue as e2open integration and cost reductions continue.

The revenue range also reflects a deliberate change in the quality of e2open sales. WiseTech’s FY27 presentation assumes e2open revenue is broadly flat as the group prioritizes integration, product and revenue synergies and continues moving away from lower-margin legacy work. Subscription attrition is expected to continue before longer-term retention initiatives take effect, while professional-services revenue is expected to decline as service delivery moves toward WiseTech’s partner network.

CargoWise carries more of the growth burden in the new year. WiseTech assumes roughly 12% to 20% CargoWise growth from new initiatives, large global freight-forwarder rollouts, and expansion from new and existing customers. It also expects a 45% to 55% first-half/second-half revenue skew because the timing of new products and AI features pushes more of the benefit toward the second half.

The timing of that acceleration helps explain the attention on the FY27 outlook. Reuters reported that Citi sees a risk that consensus estimates drift toward the lower end of the CargoWise growth range because of uncertainty around customer conversions, monetization of AI features and the timing of price increases. The same report said WiseTech’s FY26 statutory profit of $178.7 million was below the $181.9 million Visible Alpha consensus cited in a Jefferies note, and that CargoWise revenue missed the Visible Alpha estimate by 0.7%.

WiseTech’s own guidance makes the adoption risk explicit. The lower end assumes growth broadly in line with FY26 and only modest uptake of new initiatives, while the upper end assumes faster adoption of CargoWise’s new commercial model, agentic AI and new products including VerifyWise. Guidance also assumes market conditions do not change materially and notes that shifts in industrial production and global trade volumes could affect the outcome.

Execution milestones are already set for the new financial year. WiseTech plans to migrate the remaining CargoWise commitment customers to Value Packs during FY27, continue integrating e2open, and use further restructuring and AI-led efficiency work to support margin expansion and debt reduction. The board also declared a fully franked final dividend of 8.8 U.S. cents per share, payable on October 9 to shareholders on the register on September 14.