Scandal-hit WiseTech feels pressure as margins tighten, shares plunge over -9%

A rocky year of leadership drama and scandal has cast a shadow over WiseTech Global’s (ASX:WTC) full-year results, with investors reacting sharply to weaker-than-expected numbers and cautious guidance.

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Shares in the software giant were down -9.5% in early afternoon trade, after the company reported 14% revenue growth to $US778.7 million ($1.2 billion) for the year to June 30, falling just short of analysts’ expectations.

Net profit rose 17% to $US200.7 million, and EBITDA came in at $US381.6 million, slightly ahead of consensus. Excluding costs tied to its massive U.S. acquisition, EBITDA reached $US409.5 million, with a better-than-expected margin of 53%.

But the real sting came from guidance. WiseTech is tipping FY26 revenue of $US1.4 billion, but earnings margins are set to fall to 40-41%, as it integrates its $US2.1 billion acquisition of e2open, a less profitable U.S. rival.

Zubin Appoo, newly appointed CEO, delivered his first results alongside returning executive chairman Richard White, who stepped down as CEO last year amid multiple scandals.

These included a board investigation that found White misled directors, following reports he had privately settled personal matters with several women, including a former staff member.

“Our breakthrough products continue to progress towards revenue generation. We now have an opportunity to drive a new era of growth,” said Mr Appoo.

Key among those products is Container Transport Optimisation (CTO), software designed to improve port logistics. The rollout, delayed due to last year’s upheaval, will now begin on the east coast of Australia in partnership with ACFS Port Logistics, whose clients include Ikea, Coles, and Woolies.

WiseTech says CTO will expand nationally, then globally, as it targets high-volume markets.

Despite the scandals and four director resignations, WiseTech remains Australia’s biggest software company by market cap ($38.7B).

But sentiment has shifted, AustralianSuper dumped its $580M stake in March, and HESTA has threatened to follow if governance doesn’t improve.

WTC has been down -9.5%, at $104.80.

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