REG - Tracsis PLC - Trading Update and North American Contract Win

TracsisAnnouncement

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RNS Number : 2531U  Tracsis PLC  25 February 2026

 

25 February 2026

 

Tracsis plc

("Tracsis" or "the Group")

 

Trading Update and North American Contract Win

 

H1 performance in line with expectations, with continued progress against
strategic priorities

 

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
year(1). 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

 

 

 Enquiries:
 Tracsis plc

 David Frost, CEO                                                         +44 (0)845 125 9162

 Andy Kelly, CFO

 Berenberg (Nominated Adviser, Corporate Broker & Financial Adviser)      +44 (0)20 3207 7800

 Mark Whitmore / Richard Andrews / Ryan Mahnke

 James Thompson (QE)

 Alma Strategic Communications                                            +44 (0)20 3405 0205
 David Ison / Rebecca Sanders-Hewett / Joe Pederzolli

                                                                        tracsis@almastrategic.com (mailto:tracsis@almastrategic.com)

 

Notes to editors:

 

·      Tracsis plc is a technology company and a leading provider of
software and hardware products, data capture and data analytics/GIS services
for the rail, traffic data and wider transport industries.

 

·   Tracsis's products and services are widely used to increase
efficiency, reduce cost and risk, improve operational and asset performance,
improve safety management and decision making capabilities and improve the
overall end-user experience for clients and customers.

 

·      The Group is split into two principal operating areas built
around detailed industry knowledge and expertise:

 

-   Rail Technology & Services:  A software, technology and product
led business. It develops and supplies software that solves complex resource,
asset optimisation and control problems for Train Operators, and smart
ticketing, delay repay and other retail software to improve the customer
experience for rail users. It also develops remote condition monitoring
hardware, data acquisition software, and safety and risk management software
for rail infrastructure providers.

-   Data, Analytics, Consultancy & Events: A largely services led
business that focuses on data capture, data analytics, GIS, earth observation,
data insights, consultancy and event traffic management within a range of
transport and pedestrian rich environments. The business provides technology
and bespoke products and data that underpin large scale intelligent transport
systems, smart city planning and positive environmental decision making.

 

·   Tracsis has a blue-chip client base which includes all major UK
transport owning groups, Network Rail, Passenger and Freight Train Operating
Companies, the Department for Transport, TfL, multiple local authorities,
major outdoor music and sporting event organisers, and a wide variety of large
engineering and infrastructure companies. In North America our clients include
Class 1 rail freight companies, transit operators, shortline railroads and
several large rail served ports and industrials.

 

·    The business drives growth both organically and through acquisition
and has made seventeen acquisitions since 2008.

 

For more information on Tracsis please visit http://www.tracsis.com
(http://www.tracsis.com)

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