EROAD is sharpening its focus on New Zealand and Australia to capture emerging opportunities in electronic road user charging (eRUC), while making governance changes and lowering its FY26 outlook.
The NZX- and ASX-listed transport technology firm says it will “prioritise new growth investment” in ANZ, where both governments are moving toward usage- and time-of-day-based charging.
North America remains part of the business, but softer market conditions and longer enterprise sales cycles mean resources there will concentrate on serving existing customers and cold-chain opportunities. The company says growth activity in the region “has not delivered within expected timeframes”.
Chief executive Mark Heine says focusing on eRUC is “particularly energising”.
“As the world continues to trend towards more fuel-efficient vehicles, the need to fund global infrastructure sustainably and more equitably creates significant opportunity for EROAD. We see the 4.6m vehicles in New Zealand as the perfect place to start.”
Governance and leadership changes
The board has appointed John Scott as executive chair, effective immediately, for up to nine months before he reverts to non-executive chair. Scott joined the board in February and is a former Invenco chief executive.
“Since joining the board I’ve seen first-hand the scope of opportunities that EROAD is focused on… Stepping into the role of executive chair means that I can support management at this crucial time, as we move at pace for this exciting opportunity ahead,” Scott says.
Former chair Susan Paterson returns to her director role and will chair the people and culture committee.
Co-CEO David Kenneson will step down on October 31 “to spend time with family and pursue the next chapter in his career”.
“It has been a privilege to serve alongside such a talented and dedicated team… I will always be proud of what we accomplished,” Kenneson says.
Heine continues as sole chief executive.
Outlook and impairment
Reflecting US headwinds and the new investment focus, EROAD now expects FY26 revenue of $197m–$203m (previously >$205m), annual recurring revenue of $175m–$183m (previously >$188m) and free-cash-flow margin of 5%–8% (previously 8%–10%).
A large legacy North American transport customer is not renewing from February 2026. EROAD also expects to book up to $150m of impairment to North American intangible assets.
Investor day and eRUC positioning
EROAD has pushed its “EROAD 2026” investor day to March 2026 to detail the eRUC opportunity and strategy. The company says it is well placed to support the Government’s plan to transition all 4.6 million vehicles to eRUC; it currently collects about $1b in RUC annually on the Government’s behalf.
