Atturra (ASX:ATA), a technology services provider, has updated its FY26 financial guidance following a disputed termination of a fixed-term contract with an Australian public sector body.
On Dec. 16, a subsidiary of Atturra received notice of immediate termination of the contract, which was executed in May and scheduled to run until November 2026.
The company intends to dispute the purported wrongful termination and is currently assessing its legal position.
As a result, Atturra now expects FY26 revenue of $364 million to $374 million, down from previous guidance of $384 million, and underlying EBITDA of $30 million to $31 million, compared with prior guidance of $40.3 million.
The negative impact is expected to primarily affect H1 FY26, with uEBITDA of approximately $7 million, while H2 FY26 is projected to return to normal operating levels of $23–$24 million.
CEO Stephen Kowal said, "This is a challenging time for everyone involved, given the effort invested in the project. While the H1 FY26 results are impacted, the forward outlook remains positive. The measures we are taking now will strengthen Atturra's foundations and position the company for renewed momentum in the second half."
At the time of reporting, Atturra's share price was $0.68.