COSOL Limited (ASX: COS) reported a 15.6% year-over-year decline in full-year revenue to $98.6 million for FY26, masking a second-half recovery that saw underlying EBITDA rise 80% to $6.3 million.
Underlying EBITDA for the year totaled $9.8 million, a 41.8% decrease from $16.8 million in FY25, while underlying net profit after tax fell to $5.2 million from $9.9 million. Earnings per share dropped to 1.83 cents from 4.78 cents. The company maintained a cash balance of $5.3 million and achieved a cash conversion rate of 107.7%, up from 85.1% in the prior year.
Net debt, including contingent consideration, decreased to $20.0 million from $26.6 million, though net debt leverage rose to 2.05 from 1.59. Goodwill impairment charges amounted to $6.5 million for the year, while integration and restructuring costs in H2FY26 totaled approximately $340,000, below the $500,000 forecast.
The company’s data and digital consulting segment generated $67.8 million in revenue, representing 68.8% of total revenue, while asset management services contributed $30.7 million. Gross margins for data and digital consulting improved to 36.2% in FY26 from 38.3% in FY25, with a 340 basis point recovery in H2 to 37.9%. Asset management gross margins declined by 3.7 percentage points to 16.2%.
Transport and infrastructure led the data and digital consulting revenue at $22.8 million, followed by natural resources at $21.9 million and energy and water at $15.8 million. IBM’s contribution to Americas revenue grew to 25% in FY26, with management targeting a rise to approximately 45% in FY27.
COSOL’s shares fell 12.77% to $0.205 following the presentation, near the 52-week low of $0.175. The company’s Westpac borrowing facility was reduced by $4.4 million to $34.5 million, with $23.4 million drawn and $11.0 million in available capacity. The current ratio stood at 1.45, and gearing was at 36.2%.
Leadership changes included the departure of long-serving CEO Scott McGowan, who stepped down after a decade to focus on strategy, with CFO/COO Anthony Stokes assuming the interim CEO role. The CFO role was expanded in January 2026 to include COO responsibilities for data and digital consulting in Australia. Additional sales hires were made in March and May 2026.
The company noted that deferred consideration of $2.0 million for the Toustone acquisition remains payable in February 2027.
