Trajan Group (ASX:TRJ) has reaffirmed its full-year financial year 2026 guidance after a subdued start to the year gave way to a stronger second quarter, positioning the global analytical science and device group for improved performance in the second half.
In a trading update released ahead of its half-year results, Trajan described the first six months of 2026 as a tale of two quarters, with a particularly challenging first quarter followed by a clear return to growth in the second. Group net revenue for the half is expected to increase 3.8 per cent to $84.1 million, compared with $81.0 million in the prior corresponding period.
Earnings, however, were pressured in the first half, with normalised EBITDA expected to fall to $5 million, down from $7.9 million a year earlier. The company said the decline reflected a combination of foreign exchange movements, higher freight costs, and ongoing investment in its 'in-region for region' manufacturing strategy, as well as a temporary timing impact related to US tariff recovery that is not expected to recur.
The weakness was concentrated in the first quarter, when capital equipment revenue declined year-on-year, a trend the company had previously flagged at its October 2025 annual general meeting. Conditions improved materially in the second quarter, which delivered record group revenue of $45.4 million and a $4 million sequential improvement in normalised EBITDA, rising from $0.5 million in the first quarter to $4.5 million in the second.
That recovery has flowed through to Trajan’s capital equipment order book, which grew by $2.8 million over the half to reach $10.8 million heading into the second half of 2026. Management said the second-quarter run rate has created positive momentum.
Cost and pricing initiatives are expected to further support margin expansion in the months ahead, it said. Cost reductions implemented under Project Neptune late in calendar 2025 are forecast to lower the group’s cost base by around $0.8 million in the second half, while pricing actions effective from 1 January 2026 are targeted to contribute an additional $1.3 million.
Despite softer first-half earnings, Trajan has maintained its full-year guidance, with net revenue expected to exceed $170 million and normalised EBITDA forecast to exceed $16 million. Managing Director and CEO Stephen Tomisich said the company’s global footprint and operational flexibility had proven to be a strategic advantage, particularly in navigating tariff-related disruption.