WiseTech Global shares (ASX:WTC) experienced a significant downturn following the release of its fiscal year 2025 financial results, reflecting market disappointment despite reported revenue and profit increases.
WTC’s share price closed down 11.86% at A$102.02, finding some support around the A$95 level into the close, having touched an intra-day low of A$95.21 early in the session. This decline reflects the market’s reaction to the FY25 results, which, while positive, fell slightly short of analyst expectations.
Looking at the financials themselves, WiseTech reported total revenue of A$778.7 million, a 14% increase year-on-year. The CargoWise platform, a key driver of growth, generated revenue of A$682.2 million, up 18% from the previous year.
Statutory net profit after tax (NPAT) reached A$200.7 million, a 17% increase compared to FY24, whilst the company also increased its fully franked final dividend by 24% to 7.7 cents per share, payable on October 10.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 17% to A$381.6 million, with the EBITDA margin improving to 49%. Free cash flow also saw substantial growth, increasing by 31% to A$287.0 million.
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A major development during the year was the acquisition of e2open, a U.S.-based supply chain solutions provider, for US$2.1 billion. The acquisition, completed on August 4, is debt-funded and is projected to be earnings-per-share accretive within the first year, with anticipated cost savings of at least $50 million annually by the end of the second year. According to WiseTech, this acquisition aims to “expand WiseTech’s product capabilities and accelerate its vision to become the operating system for global trade and logistics.”
Recent events have also included leadership changes, with founder Richard White reappointed as executive chairman in February 2025 following the departure of four non-executive directors. This decision was aimed at stabilizing the company’s leadership and overseeing succession planning during a period of internal challenges.
The markets appear to be weighing the potential benefits of the e2open acquisition against the risks associated with increased debt and integration challenges. The leadership changes earlier in the year may also be contributing to investor caution with WiseTech having lost more than a third of it’s market cap from mid February through to April.
The company’s ability to manage its debt burden and maintain its growth trajectory will be critical in shaping market sentiment going forward, with WTC trading 17.65% lower YTD and looking to recapture the bullish narrative that had earlier seen shares gain 140% in a 2 year period from the beginning of 2023. Plenty to be done according to today’s result.
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