WiseTech Faces Integration Costs as e2open Deal Expands Market Reach

Strong Financial Performance in FY25

WiseTech Global delivered a compelling FY25 performance, with total revenue climbing 14% year-over-year to $778.7 million, driven primarily by an 18% increase in CargoWise revenue. The company’s EBITDA margin, excluding one-time e2open acquisition costs, reached an impressive 53%, surpassing the top end of its guidance range. This margin expansion reflects WiseTech’s ongoing operational leverage and cost efficiency initiatives.

Underlying net profit after tax (NPAT) rose 30% to $241.8 million, while free cash flow surged 31% to $287 million, underscoring the strength of WiseTech’s highly cash-generative SaaS business model. The company also declared a fully franked final dividend of 7.7 cents per share, up 24% from the prior year.

Strategic Acquisition of e2open Expands Market Reach

In a transformative move, WiseTech completed the acquisition of e2open in early August 2025, significantly broadening its total addressable market within the $11+ trillion global trade and logistics sector. This acquisition complements WiseTech’s existing product suite and ecosystem, enabling the creation of a multi-sided marketplace that connects carriers, logistics providers, terminals, and other stakeholders.

The integration plan is well underway, with targeted cost synergies of $50 million annualized by FY27 and additional AI-driven efficiencies expected. While the acquisition dilutes EBITDA margin in the near term due to integration costs, WiseTech anticipates margin expansion in subsequent years as synergies materialize.

Innovation and Product Development Drive Growth

WiseTech’s relentless focus on innovation continues to fuel growth. The rollout of CargoWise Next is essentially complete, and the company is advancing new breakthrough products such as Container Transport Optimization, which leverages advanced algorithms to reduce costs and environmental impact. A strategic partnership with ACFS Port Logistics further enhances this offering.

Additionally, WiseTech is pioneering AI-driven workflow and management engines embedded within CargoWise, automating complex logistics tasks and improving operational efficiency. Over the past five years, the company has delivered more than 5,700 product enhancements, reflecting a sustained commitment to R&D with $263.8 million invested in FY25 alone.

Robust FY26 Outlook Amid Integration and Innovation

Looking ahead, WiseTech projects CargoWise revenue growth between 14% and 21% in FY26, supported by ongoing large global freight forwarder rollouts and new customer adoption. The company expects an EBITDA margin exit rate of 43% to 44%, factoring in e2open integration costs and anticipated synergies.

WiseTech’s new commercial model, CargoWise Value Pack, is set to launch, aiming to deepen market penetration and capture the commercial value of AI. While the first half of FY26 may see margin pressure from integration expenses, the second half is expected to benefit from cost efficiencies and product rollouts.

Global Footprint and Customer Momentum

WiseTech’s global presence spans 193 countries, with a diverse customer base including 47 of the top 50 global third-party logistics providers. The company secured two new top 25 global freight forwarder rollouts in FY25 and now has 55 large global freight forwarder rollouts in production or contracted, underpinning long-term recurring revenue growth.

Customer retention remains exceptional, with attrition rates below 1% annually over the past 13 years, highlighting strong product stickiness and market leadership.