WiseTech Global (ASX:WTC) shares are showing signs of recovery, bouncing back from mid-November lows, though significant year-to-date losses persist.
The Australian logistics software company’s shares rose 4.51% today, closing at A$72.58. This upward movement marks a nearly 20% rebound from the lows seen in mid-November. However, WiseTech shares remains down approximately 41% year-to-date, highlighting the substantial ground it needs to recover.
WiseTech has faced a turbulent year or so. In October 2024, Richard White stepped down as CEO amidst controversy. Subsequently, in February 2025, several independent non-executive directors, including Chairman Richard Dammery, resigned due to disagreements with White, who then returned as Executive Chairman. These leadership changes raised questions about the company’s stability and governance.
Adding to the challenges, in October of this year, the Australian Securities and Investments Commission (ASIC) and the Australian Federal Police executed a search warrant at WiseTech’s Sydney office, initiating an investigation into alleged insider trading involving White and three employees. While the investigation is ongoing and no charges have been filed, it has increased scrutiny on the company.
Financially, WiseTech reported a 30% increase in underlying net profit after tax to $241.8 million and a 14% rise in revenue to $778.7 million for the fiscal year ending June 30. However, the company’s fiscal 2026 EBITDA guidance of $550 million to $585 million fell short of analyst expectations, which had projected $651 million, leading to a subsequent drop in share price.
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The company is also pursuing strategic acquisitions. In November, WiseTech announced its intent to acquire e2open, a connected supply chain software platform. According to WiseTech, this acquisition is aimed at enhancing its global trade and logistics capabilities and is expected to be completed in the first half of 2026, subject to regulatory approvals.
Bull Case:
- Strategic acquisition of e2open expands global capabilities.
- Recent rebound suggests renewed market confidence.
- Strong underlying net profit growth reported for fiscal year.
Bear Case:
- Regulatory investigation creates uncertainty.
- 2026 EBITDA guidance below analyst expectations.
- Leadership turmoil and board resignations raise governance concerns.
WiseTech faces a balancing act of capitalizing on its strategic acquisitions while navigating governance concerns and meeting financial expectations. The markets will be closely watching the progress of the e2open acquisition and any further developments in the regulatory investigation, as these factors will could have a key role to play in the direction of WiseTech’s shares in the coming months.
