Trajan maintains FY25 revenue guidance showing strength during uncertain times. Pic via Getty Images.
- Trajan maintains FY25 revenue guidance at $160-$165 million
- Maintains guidance despite global geopolitical and market challenges
- Some risk to normalised EBITDA guidance but strong year-on-year growth still anticipated
Special Report: Melbourne-headquartered global analytical science and device company Trajan Group has maintained full year revenue guidance for FY25 of $160-$165 million, demonstrating resilience to global geopolitical and market pressures.
Trajan Group Holdings (ASX:TRJ) has provided an update on its year-to-date operational performance, saying its diversified international footprint is proving instrumental in managing emerging challenges, particularly those related to evolving geopolitical and trade conditions.
The global developer and manufacturer of life sciences products and devices used in the analysis of biological, food, water and other environmental samples has a vast network of global manufacturing sites and operations.
“As a globally oriented business with weighted exposure to the US market, Trajan is well-positioned to adapt,” Trajan said in its update.
The company said several leading companies in the analytical and life science tools sector had reported flat, or declining, performance amid geopolitical challenges.
Trajan said new US tariff regimes and reduced US government funding notably at the National Institutes of Health (NIH) and Centers for Disease Control and Prevention (CDC) was impacting the sector.
However, Trajan said it remained “committed to navigating these headwinds with a measured and proactive approach while maintaining revenue growth”.
Trajan charts a steady course
In its H1 FY25 results in February, Trajan disclosed an expected revenue impact to its capital equipment segment of ~$1m due to changes in NIH and CDC-related project funding.
The company said this impact was factored into its full-year revenue guidance at the time, which remained unchanged.
However, since then Trajan said the scope and immediacy of tariffs was continuing to evolve, both inbound to the US and China.
And with multiple international production locations, including Australia, Malaysia and the US, Trajan said it had experienced some direct impact.
“Additionally, as a US domestic manufacturer with facilities in Texas, Connecticut, Kentucky, and North Carolina, Trajan is also subject to input cost pressures related to imported materials and components,” the company said.
“Despite these evolving conditions, Trajan remains on track to meet its FY25 revenue guidance, representing growth of no less than 3% over the prior year.”
The company said FY25 normalised EBITDA guidance represented an increase of at least 38% year-on-year at the lower end of the guidance range, however, some risk existed in achieving that result due to margin performance.
“To mitigate long-term risks and strengthen our competitive position, Trajan is accelerating utilisation of its regional manufacturing capabilities,” Trajan said.
The company is expanding capabilities at its Malaysian and Australian operations to serve global markets, whilst also increasing US production capabilities for US-based customers.
The approach enables Trajan to maintain production capacity near customers, which it deemed effectively a “make in region for region” strategy, reducing exposure to volatile trade flows and enhancing supply chain resilience.
‘Decisive steps to mitigate risks’
CEO Stephen Tomisich said Trajan’s depth of experience had enabled the company to respond quickly and strategically to current global challenges as with the Covid-19 pandemic.
“We’re taking decisive steps to mitigate risks and leverage the advantages of our global operations,” he said.
“In a sector where many peers are reporting contraction, our flexible, regionally empowered model is delivering stability and resilience.
“We’re deepening relationships with global customers and exploring expanded roles in their evolving business models.”
Tomisich said new product traction was encouraging and the company looked forward to upcoming releases next month.
“With expected FY25 growth of 3–5%, we are confident in our strategy and ability to manage through complexity,” he said.
“While some short-term costs and product mix factors may modestly impact margins, the business continues to perform largely as planned.”
This article was developed in collaboration with Trajan, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
