Atturra has provided an audited trading update for FY26 and outlook for FY27, with underlying EBITDA for FY26 set to be in line with guidance of between $30 million to $30.5 million.
This includes 2H26 adjustment for restructuring charges of approximately $1.7 million.
FY26 revenue is expected to be between $348 million to $352 million, superseding the guidance issued on 19 December 2025 of between $364 to $374 million.
This is largely driven by revenue recognition for several deals that closed in June with different contract structures than anticipated, resulting in product sales being recognised as agent instead of principal.
Operating cashflow for FY26 is anticipated to be circa $9 million, with 2H26 cashflows of $22-23 million, representing a return to normal positive cash flow.
With a renewed focus on organic growth following the integration of several businesses over the past 24 months, Atturra expects to deliver strong organic growth in revenue, EBIT and underlying EBITDA in FY27.
The company also expects that this earnings profile will be materially weighted to 2H27, reflecting the timing of planned investment, the expected ramp-up of strategic growth initiatives including in AI capabilities, the benefits of FY26 restructuring activity and the contribution from opportunities currently progressing across the business.
Investments in AI, ERP on horizon
Atturra stated that it has already "invested heavily" in its AI capabilities and intends to accelerate this further by investing an additional $3 million during FY27.
The company told techpartner.news that these future investments are primarily related to two areas.
"Additional AI forward deployed engineers, [plus] upskilling all staff in AI and implementing a continuous education program", the company stated.
While Atturra said it has already trained a significant amount of staff on AI, it also stated that "unlike most technology, [AI] requires quarterly refresh training".
While this $3 million investment is anticipated to have a negative earnings impact on 1H27 of approximately $2 million, it is not expected to have an earnings impact in 2H27 as the expense will be offset by growth.
Atturra also said it is experiencing "strong growth" in its ERP and related business services; as a result, the company has increased sales and management investment by more than $1.5 million as it enters FY27.
This investment is primarily focused on the SAP business, which is currently forecast to grow in excess of 50% between FY26 and FY27, delivering a long-term earnings uplift. The additional cost is not expected to be covered by incremental profit until 2H27.
In response to what it claimed was strong market demand, Atturra is also accelerating investment in Scholarion, its platform designed to support student management and education administration systems.
Atturra expects investment in Scholarion to exceed $4 million in FY27. After capitalisation, the Scholarion business is expected to record a loss of approximately $2.4 million in FY27, with the majority of that loss expected to occur in the first half (or 1H27). T
The company currently expects Scholarion to break even in FY28 and generate meaningful profit from FY29 along with material shareholder value.
Impairment of $20m to $25m flagged
As part of the company's preparation of its FY26 financial statements, an annual review of the carrying value of its assets including goodwill and other intangible assets was undertaken.
Following this review and having regard to changes in market conditions affecting certain government and advisory-related business lines, together with Atturra's current market capitalisation, the company expects to recognise a one-off, non-cash goodwill impairment charge in the range of $20 million to $25 million.
The proposed impairment primarily relates to historic acquisitions servicing government and defence customers, particularly within the Canberra market, where reduced government expenditure on discretionary projects and external consulting services has impacted expected long-term earnings.
Atturra stated that the impairment is an accounting adjustment and does not reflect the performance of the broader Atturra business, with the company continuing to benefit from its "diversified operating model, with strong growth across its data, ERP, and managed services businesses" offsetting the softer conditions experienced in parts of its government consulting operations.
The impairment will have no impact on Atturra's current period or go forward cash flows, underlying operating performance or long-term growth.
Technology services market is "changing quickly"
Atturra CEO Stephen Kowal said the technology services market is changing quickly, and Atturra is investing in the areas where we see the strongest long-term opportunities
"AI, Data, ERP and Scholarion are strategically important growth platforms for the business, and we believe the investments we are making now will strengthen our competitive position and support sustainable earnings growth over the medium term," he said.
"While these investments will create a second half earnings skew in FY27, we are confident in the underlying momentum of the business and our ability to deliver further growth in both EBIT and underlying EBITDA.”
Atturra expects to release its FY26 full year audited results on 26 August 2026.
In February, the company released its financial results for H1 FY26, with revenue increasing to $181 million (up 28% from the prior corresponding period), but profit falling, driven by opex expenditure in the year.
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