WiseTech’s Dip Could Be an Opportunity
Hi, my name is Henry Jennings from the Marcus Today newsletter. Today I thought I’d give you a quick update on the WiseTech results out this morning, Wednesday the 27th of August. As usual, all the information contained here is general advice only, so please do your own research and contact your own financial adviser regarding any of the ideas we go through today.
WiseTech numbers were released this morning and it’s fair to say the reaction was volatile. Revenue rose 14% to US$778.7 million and net profit after tax increased 17% to US$200 million. However, analysts had expected more — nearly US$800 million in revenue and NPAT of US$220.6 million. A miss, and the market certainly took it badly to begin with, with the share price down 15%.
At 10:00am the analyst conference call began, which did go some way to reassure investors about the future outlook. The dividend came in at 7.7 cents, reflecting some optimism, though the result itself was underwhelming. Currently, the stock is down around 7%. Having said that, it rallied 4% the day before, so some of today’s weakness is not unexpected. It did get down to the mid-$90s at one stage and has been trending lower towards $100 in the lead-up to results.
CargoWise revenue was $682.2 million, up 18%. EBITDA came in at $409.5 million, excluding $27.9 million in e2open M&A costs. The e2open acquisition, funded through bank debt, is seen as the big game-changer for WiseTech. Reported EBITDA was $381.6 million, up 17%. Underlying NPAT was $241.8 million. The final dividend of 7.7 cents was up 24% on FY24, reflecting optimism in the outlook.
This was the first presentation from the new CEO, Zubin Up. He had a big task, with the conference call running from 10:00am until around 11:20am. Interim CFO Caroline Pham also presented. Both were solid, if not the most exciting presenters. What we all wanted to hear, of course, was from Richard White — the biggest shareholder, now Chief Innovation Officer and Executive Chair. As always, he was bullish and very committed to the future of WiseTech and the e2open acquisition.
They also spoke about expanding the ecosystem, the AI workflow engine, generative AI personas, and tariff tailwinds. The complexity of new tariffs, especially in and out of the US, is a tailwind for WiseTech. Guidance for FY26 was revenue of $1.39–$1.44 billion, growth of around 8–9%. EBITDA was guided at $550–$585 million, growth of 44–53% over FY25, with EBITDA margin at 40–41%. Plenty of emphasis was placed on AI integration.
Richard White highlighted several focus areas: the rollout of CargoWise Next, bedding down the e2open acquisition (completed at the start of August), the strategic partnership with ICF S Port Logistics, and a new commercial model for CargoWise Value Pack. There was plenty of analyst interest, and I came away feeling more positive about the company. We hold WiseTech in our Small Cap Portfolio — though it’s hardly a small cap — as a standout tech play benefiting from tariff complexities and supply chain shifts.
The market was a little disappointed, but we had already seen a run into the results. That optimism has unwound, though the stock is well off its lows. I expect some slight broker downgrades to price targets in coming days. Overall, it wasn’t a bad result — solid, with e2open the key driver from here. With the tone of the new CEO, interim CFO and Richard White all leaning optimistic, there’s more to come.
WiseTech is off the lows and continues to be a company we like. That’s it for now. Thanks for reading this WiseTech update. In the meantime, if you’d like more insights, head to marcustoday.com.au for a free two-week trial — we’d be delighted to share our thoughts with you there.
What’s Next for the ASX?
Henry Jennings breaks down reporting season – the results that mattered and the themes to watch.