Atturra delivers $351.8m revenue in FY26 as AI reshapes growth strategy
In its FY26 results presentation delivered to the market on 26 August 2026, Atturra Limited (ASX:ATA) reported revenue of $351.8m, up 17% on the prior comparable period. Management outlined a more nuanced profit picture, with FY26 underlying EBITDA down 5% to $30.1m following the termination of a key contract.
The Atturra FY26 results showed a marked second-half recovery, with 2H26 underlying EBITDA rising 27% to $22.8m. Looking ahead, management is forecasting record revenue, EBIT and underlying EBITDA in FY27.
Key figures from the FY26 snapshot include:
- Revenue: $351.8m (+17% on pcp)
- FY26 underlying EBITDA: $30.1m (-5% on pcp)
- 2H26 underlying EBITDA: $22.8m (+27% on pcp)
- Predictable revenue: 78% (up from 58% in FY24)
- Operating cashflow H2: $22.5m
- Staff: 1,300+ (including 350+ security cleared)
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FY26 financial performance in detail
The presentation was transparent about the contrast between top-line strength and profitability pressure. Revenue rose 17% to $351.8m, while gross margin held steady at 33%, which management pointed to as evidence that the quality of business remained stable.
The reported result told a more complex story. Reported NPAT came in at -$21.7m, driven largely by a $22.8m non-cash impairment of intangibles alongside a $3.8m organisational restructure cost. Both items were flagged as non-cash or one-off in nature.
The FY26 earnings update published in July 2026 flagged the goodwill impairment as tied to legacy government and defence acquisitions in the Canberra market, where reduced discretionary spending lowered long-term earnings expectations for those assets.
On an underlying basis, the picture was firmer. Underlying NPATA was $13.5m and underlying EBIT reached $19.2m. Over a five-year horizon, revenue has grown at a 27% CAGR, expanding from $134.6m in FY22 to $351.8m in FY26.
| Metric | FY26 | FY25 | % Change |
|---|---|---|---|
| Revenue | $351.8m | $300.6m | +17% |
| Gross Margin | $117.4m | $102.4m | +15% |
| Underlying EBITDA | $30.1m | $31.5m | -5% |
| Underlying NPATA | $13.5m | $19.6m | -31% |
| Reported NPAT | -$21.7m | $9.1m | -339% |
| EPSA | 3.66c | 5.61c | -35% |
Key takeaway
The reported loss was driven by a non-cash impairment and restructure charges, while management’s FY27 guidance forecasts record revenue, EBIT and underlying EBITDA.
Balance sheet and cash position
Atturra ended the period with closing cash of $66m, down 28% from $91.6m a year earlier. The movement reflected active capital deployment across the year.
Key drivers of the cash movement included:
- $9.1m operating cash inflow
- $23.5m invested in subsidiaries (including earn-out payments)
- $9.4m allocated to the share buy-back programme
Borrowings rose to $29.4m, up 57%, to facilitate acquisition in FY26. The same acquisition drove a material increase in inventory levels.
Predictable revenue and the shift toward recurring income
A central theme of the presentation was the improving quality of Atturra’s revenue base. Predictable revenue now represents 78% of the total, up from 58% in FY24.
The revenue composition breaks down as follows:
- Recurring revenue: 51%
- Long-term client revenue: 27%
- Other revenue: 22%
As defined in the presentation, “predictable revenue is the combination of recurring revenue and long-term client revenue.” Higher predictable revenue reduces earnings volatility and supports valuation quality.
The company also detailed its revenue diversification by industry, spanning Public Sector at 34%, Energy & Resources at 15%, Financial Services at 11%, Education at 6%, Manufacturing at 6%, and Other at 29%.
What Atturra’s AI-first strategy means for investors
Why AI matters to Atturra’s growth
Atturra provides advisory and IT solutions across a range of industries. Its stated “AI-first approach” involves embedding AI both within client offerings and its own internal delivery, with the aim of lifting productivity and margin.
The market backdrop is expanding quickly. The Australian AI market is forecast to grow at a 36.7% CAGR between 2026 and 2033, and management noted the broader AI opportunity is forecast to double to $15b in FY27.
The presentation also cited Gartner’s framing of 2026 as “the inflection year for AI,” referencing enterprises moving from tactical initiatives toward larger-scale deployment.
Core growth areas and industry solutions
Management identified four core focus areas: AI, Cyber, Cloud and Data. The presentation pointed to tangible progress across its industry solutions:
- Scholarion™ grew to 6 contracted clients in FY26, targeting 20+ contracted schools by the end of FY27
- Atturra Cloud Platform now serves 60+ clients
- Cloud revenue grew 29% to $40m in FY26
- Approximately $25m was deployed on share buy-back and acquisitions
Since 1 July 2026, Scholarion™ has operated as its own business unit within Atturra, with all 12 modules due for completion by September 2026. The offering is built natively on Microsoft Dynamics 365 and Copilot, targeting the highly sticky student information systems market.
FY27 outlook and strategic priorities
Management presented an outlook centred on organic growth, with the company expecting to deliver record revenue, EBIT and underlying EBITDA in FY27.
The four strategic priorities outlined were:
- AI investment is expected to generate returns from 2HFY27, primarily enabling growth without additional resources
- Scale Scholarion™ through disciplined commercialisation, targeting breakeven in FY28
- Invest in additional sales and solutioning to achieve above-market growth across AI, Cyber, Cloud, Data and ERP
- Prioritise EPS and cash conversion, with further share buy-backs where value accretive and financial capacity permits
The combination of the second-half EBITDA rebound and record FY27 guidance reflects a business increasingly weighted toward predictable, recurring revenue, with management forecasting record revenue, EBIT and underlying EBITDA in the year ahead.
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