Trajan Group (ASX:TRJ) has updated investors that market demand for its analytical science and device products remained broadly in line with expectations during the second half of financial year 2026 and that the business continues to grow on a fixed foreign exchange basis.
The company said components and consumables tracked long-term trends, capital equipment orders strengthened, and its disruptive technologies segment saw accelerated growth.
It said cost and margin improvements tied to project 'Neptune' are delivering benefits, including headcount reductions of more than $0.8 million and the first step in global footprint rationalisation, reducing ongoing facility costs in Connecticut (US). The company also reported that automation installed in Australia and the US, together with a shift of operations into Malaysia and international acquisitions, have progressively reduced its exposure to movements in the Australian dollar since its IPO.
Trajan warned that a strengthening Australian dollar against the US dollar and Euro, since it announced first-half 2026 results, is likely to reduce reported second-half results by about $4 million in revenue and $2 million in earnings at current rates. The group noted that substantial foreign exchange hedging contracts in place through to June 2027 protect its cash position, although those hedging benefits and other non-cash foreign exchange impacts are excluded from reported earnings.
The company said the final step of the global ERP rollout is underway, with the implementation in Germany expected to improve supply chain management and deliver future efficiency gains, but also posing a potential risk to the timing of capital equipment shipments and revenue recognition as the company approaches year-end.
CEO Stephen Tomisich said, “Operationally Trajan has largely performed as expected in H2 FY26. The anticipated productivity and margin gains are being realised, growth in our Components and Consumables Segment has continued on trend and the accelerated growth of our Disruptive Technologies Segment is starting to demonstrate the value of these long term investments. The Capital Equipment order book has remained strong and meeting full year revenue targets will again be very much about what can be shipped and recognised prior to year-end”