Trajan Group on track but facing currency volatility

Trajan Group (ASX:TRJ) confirmed that its strategic operational initiatives remain firmly on track despite shifting macroeconomic conditions and sudden currency volatility.

The Melbourne-headquartered company reported that second-half market demand for FY26 aligns precisely with long-term projections.

Steady volume growth was recorded across key global business segments, including components and consumables, the capital equipment order book, and its high-growth disruptive technologies division.

Trajan attributed its operational resilience amid ongoing geopolitical tensions to its enduring partnerships with blue-chip institutional customers and its strategic "in region for region" local manufacturing model.

The company's internal cost and margin improvement programme, dubbed "Project Neptune", continues to yield positive results.

Unaudited management accounts indicate significant H2 efficiency gains, including over $0.8 million saved through targeted headcount rationalisation and reduced structural overheads following the successful consolidation of its facility footprint within its Connecticut operations.

However, recent foreign exchange movements are poised to overshadow these core operational advances.

Following more than two years of relative currency stability, a sharp appreciation of the Australian dollar against both the US dollar and the Euro will unfavourably impact the translation of overseas earnings.

Trajan forecasts this statutory revaluation will reduce reported H2 FY26 results by approximately $4 million in revenue and $2 million in normalised EBITDA.

Management reassured shareholders that forex hedging practices remain securely in place through to June 2027.

At the time of reporting, Trajan Group’s share price was $0.30.