Preview: Australian Small Cap Industrials

Research evidence excerpt

Preview: Australian Small Cap Industrials

Royal Bank of Canada, Sydney

Branch

Wei-Weng Chen (Analyst)

+61 2 9033 3320, wei-

weng.chen@rbccm.com

Jackie Moody (Analyst)

+612 9033 3108,

jackie.moody@rbccm.com

May 11, 2026

Preview: Australian Small Cap IndustrialsRESEARCH May 2026: Travel, Tech and TravelTech

Our view: A number of our Travel/Tech companies are set to report their results in the coming month:

360 (1Q26), SKO, WEB and WJL (FY26). In travel, impacts from the Iran war will be the key focus

with trading updates to date for this period being largely mixed. ASX:FLT reaffirmed FY guidance in

early May, although the accompanying trading update highlighted profitability impacts from booking

cancellations in April. Offshore, NASDAQ: BKNG reported a c.2% headwind to Mar-Q room night growth

from higher cancellations and weaker demand, consequently downgrading FY guidance. While NASDAQ:

EXPE maintained FY guidance. Outside of travel, 360 have highlighted 1Q expectations for i) <20% MAUEQUITY

growth, ii) low double-digit EBITDA margins; and iii) a 2H earnings skew. With RBC ElementsTM high

frequency app data series indicating a slowing of MAU growth into April, we expect the market will look

to gain confidence in the managements' ability to deliver on a larger than usual 2H skew.

360 [Reporting Tuesday 12th May]: For 1Q26 we are forecasting revenue of $133.3 million and EBITDA

of $13.4 million. Management have previously flagged the expectation for 1Q26 EBITDA margins to

be impacted by a number of one-offs resulting in "low double-digit" EBITDA margins (RBCe: 10%). For

the full year, 360 are guiding to i) 20% MAU growth, ii) group revenue in the range of $640 million -

$680 million; and iii) adjusted EBITDA in the range of $128 million - $138 million. For the upcoming