• Challenges in Q1 with progressive recovery in Q2
• Margin enhancement delays due to macro factors and operational issues
• FY26 guidance maintained: Revenue $170M+, nEBITDA $16M+
• Headwinds and tailwinds observed in FY26

Trajan Group's H1 FY26 results presentation highlighted a challenging first half, with Q1 facing obstacles such as purchasing caution in Capital Equipment, a slowdown in Pharmaceutical and Food sectors, and a US Government funding freeze. However, the company saw a progressive recovery in Q2, with record group revenue and growth in the Capital Equipment order book. Industry peers also reported expected recovery, with average CY 2026 growth rates between 4-6%. Margin enhancement was delayed due to additional factors, including slower-than-expected benefits from Project Neptune, production site inefficiencies, and setbacks in supply chain rationalisation. Nevertheless, the company expects further margin benefits in H2 FY26 from additional Project Neptune cost reductions, pricing actions, and supply chain and growth initiatives. Trajan maintained its FY26 guidance of Net Revenue $170M+ and Group nEBITDA $16M+. The company also highlighted key headwinds, such as the macroeconomic environment, tariff volatility, and geopolitical unrest, as well as tailwinds, including a sector-wide return to growth, Pharma recovery, and government funding approval.

FY26 Net Revenue $170.0M+ (FY25: $165.5M), FY26 Group nEBITDA $16.0M+ (FY25: $15.5M)

H2 baseline nEBITDA $8.6M (based on Q2 run rate), with additional $0.8M from resource reductions, $1.3M from pricing actions, and $0.3M from supply chain and growth initiatives. Risk of further revaluation of offshore assets with escalation of AUD.