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Highlights
- WiseTech (WTC) reports 38% net profit growth and strong recurring revenue.
- Expansion through acquisitions and new product rollouts.
- Founder Richard White appointed as Executive Chair, succession planning underway.
WiseTech (ASX:WTC), a leading provider of global logistics software, has delivered an impressive financial performance for the first half of FY25, reporting significant revenue and profit growth.
For the six months ending December 31, 2024, WiseTech recorded total revenue of $381 million, reflecting a 17% increase year-over-year. Earnings before interest, tax, depreciation, and amortization (EBITDA) surged 28% to $192.3 million, while underlying net profit after tax (NPAT) climbed 34% to $112.1 million. Statutory net profit saw a robust 38% growth to $106.4 million, further strengthening the company’s financial position.
Recurring revenue remains a major strength, accounting for 98% of total revenue, up from 97% in the previous corresponding period. Free cash flow also improved, growing 22% to $124.1 million. Reflecting confidence in its financials, the company raised its interim dividend by 31% to $0.067 per share.
CargoWise Expansion & Strategic Acquisitions
CargoWise, WiseTech’s flagship logistics software, continues to drive strong growth, generating $331.7 million in revenue—a 20% organic increase. This expansion is fueled by growing adoption among large global freight forwarders (LGFFs), with the company securing two new top-25 LGFF clients, Nippon Express and LOGISTEED. WiseTech now serves 14 of the top 25 global freight forwarders, reinforcing its leadership in the industry.
To further expand its global footprint, WiseTech completed the acquisition of Singeste, gaining a customs foothold in Portugal. This move enhances its global trade platform, now covering around 80% of global manufactured trade flows. Additionally, the acquisition of BSM Global and the signing of ImpexDocs will enhance CargoWise’s digital documentation capabilities.
Leadership Transition & Governance Updates
A key development in the company’s leadership structure is the appointment of founder Richard White as Executive Chair. White will now lead the company’s product development and long-term growth strategy. A search for a new CEO is underway as part of succession planning.
Additionally, Mike Gregg has joined the board as the lead independent director, overseeing governance matters and board renewal processes. WiseTech is also planning to appoint more independent directors, with at least one new appointment expected in the coming weeks.
Guidance & Future Outlook
Despite recent volatility, WiseTech remains optimistic about its future. The company now expects full-year revenue to reach the lower end of its guidance range of $1.2 billion to $1.3 billion, representing annual growth between 15% to 25%. Meanwhile, its EBITDA margin is expected to be at the higher end of the forecasted 50% to 51% range.
While governance transitions are ongoing, the company’s financial growth and market position remain strong, reinforcing its role as a key player in the global logistics technology sector.
