Trading Update and North American Contract Win
Tracsis plc reported a trading update for the six months ended 31 January 2026, with revenue expected to be approximately £39 million, up from £36.3 million in the prior year, and adjusted EBITDA projected at £5.0 million, an increase from £3.8 million. The company secured a new multi-year Train Dispatch contract in North America, contributing to its expectation of full-year trading being in line with market expectations, with net cash standing at £25.8 million. Both divisions experienced revenue and margin growth, driven by recurring licence and consumer-driven transactional revenues, and the company maintains a strong balance sheet with healthy cash generation.
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Tracsis (LSE: TRCS), a leading transport technology provider, provides the following trading update for the six months ended 31 January 2026 ("H1 FY26").
Summary
| · | Trading in line with market expectations for the full-year 1 |
| · | H1 FY26 revenue expected to be c.£39m (H1 FY25: £36.3m) and adjusted EBITDA expected to be c.£5.0m (H1 FY25: £3.8m) |
| · | Revenue and margin growth in both Divisions, with continued growth in recurring licence 2 and consumer-driven transactional revenues 3 |
| · | New multi-year Train Dispatch contract win in North America |
| · | FY25 multi-year contract wins being delivered as planned |
| · | A strong balance sheet with healthy cash generation in the period, with net cash of £25.8m at H1 FY26 (H1 FY25: £22.1m; FY25: £23.4m) |
North America Train Dispatch contract win
The Group has signed a new multi-year contract with a shortline freight railroad in North America to deploy its Train Dispatch software product. Building on the previously announced first implementation of the product with a US commuter rail operator, this contract provides further validation of the competitiveness of our Train Dispatch offering in North America.
Implementation work is underway and will contribute project revenue that underpins the Board's expectations for FY26. Full deployment is expected during FY27, after which the Group will receive recurring support and maintenance licence revenue.
Full year expectations unchanged
Following a robust H1 FY26, the Board re-iterates its expectations to deliver revenue and adjusted EBITDA in line with market expectations for the full year1. The H1/H2 phasing of revenue is expected to be consistent with historical trends, supported by:
| · | Recurring revenues from its large installed base |
| · | Consumer-driven transactional revenues consistent with current levels |
| · | A significant confirmed orderbook, including the initial phase of implementation work on the North American contract win |
| · | Run rate activity and pipeline conversion consistent with FY25 levels |
UK rail market conditions are assumed to remain unchanged, with Remote Condition Monitoring hardware volumes continuing to run below historical levels. The Group continues to see a pipeline of rail technology opportunities, though procurement timelines are expected to remain protracted.
David Frost, CEO of Tracsis, said:
"The Group delivered a first half performance in line with our expectations, showing a significant improvement over H1 FY25. I am pleased with how we are delivering on commitments while making progress in executing our strategy to deliver scalable, long-term growth.
The new contract win in North America is an important strategic milestone. Tracsis' Train Dispatch product has been operating successfully since its first deployment in September 2024 and this win, with a different type of operator, provides further validation of the product and addressable demand in the North American market. International diversification is a core component of our growth strategy and we continue to progress a Train Dispatch pipeline in North America, where there is demand for new technology providers although procurement processes can be protracted.
Tracsis remains well placed to benefit from long-term structural trends in our end markets. The Railways Bill introduced in November 2025 reinforces the UK government's strategic plans for UK Rail and provides further confidence that our portfolio aligns with the future of the sector.
Supported by a robust balance sheet and healthy cash generation, we remain focused on executing our growth transformation strategy, prioritising growth in higher-margin software licence and transactional revenues. As part of this, we continue to review the alignment of our portfolio and explore targeted acquisition opportunities that further strengthen our strategic position."
1 The Company is aware of four analysts publishing independent research. The Company compiled analyst expectations for the year ended 31 July 2026 is for a mean adjusted EBITDA of £13.4m, with a range from £13.0m to £13.8m.
2 Rail Technology & Services revenue from software licences where the product has been deployed with the end customer. Includes annual renewals and multi-year contracts.
3 Revenue from processing consumer pay-as-you-go smart ticketing and delay repay transactions
The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulation (EU) No.596/2014
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