WiseTech Global Shares Plunge 10% as e2open Costs Hit Annual Profit

Shares of WiseTech Global, Australia's largest technology company by market value, tumbled more than 10% on Wednesday after the logistics software maker reported annual profit below market expectations. The decline made the stock the biggest drag on the ASX 200, which closed 0.4% lower.

The company's statutory net profit after tax for the year ended June 30 came in at $178.7 million, missing the Visible Alpha consensus estimate of $181.9 million, according to a Jefferies note. CargoWise revenue also fell short of the estimate by 0.7%.

The earnings miss was driven by costs tied to the $2.1 billion acquisition of e2open, completed in June. The deal, aimed at expanding CargoWise beyond freight forwarding and customs into broader supply chain services, brought higher interest and amortization charges. WiseTech drew $2.4 billion in debt to fund the purchase, leading to materially higher interest expenses, along with acquired amortization, M&A costs, and contingent consideration adjustments.

For fiscal 2027, WiseTech guided for revenue of $1.48-$1.54 billion and underlying operating earnings of $725-$780 million, up from $1.40 billion revenue and $644.5 million earnings in fiscal 2026. Emanuel Ajay Datt, managing director at Datt Capital, called the guidance range conservative, reflecting the integration work needed to absorb e2open, and noted WiseTech's history of beating its own forecasts.

Citi analysts flagged that consensus estimates could drift toward the lower end of CargoWise's revenue growth guidance, citing uncertainty around customer conversions, AI monetisation, and price-increase timing, with a clearer acceleration unlikely before the second half.

Separately, the logistics technology sector continues to attract investment, with autonomous trucking company Gatik raising $200 million in a Series D round led by Qatar Investment Authority and Koch Disruptive Technologies.