EROAD has unveiled a sweeping turnaround strategy centred on New Zealand and Australia, signalling a reset of the business following a difficult period marked by a major North American write-down and governance upheaval.
Speaking at the company’s annual shareholder meeting on Wednesday, executive chair John Scott said the publicly listed telematics provider had entered a fifth phase of its history, describing it as “the reset” after several years of acquisitions, restructuring and strategic changes.
Scott said New Zealand remained the company’s “jewel in the crown” and its highest priority, while Australia had emerged as its strongest growth market.
“We will do everything to protect it,” Scott said of the New Zealand business, adding that Australia was delivering double-digit growth in a fragmented market that increasingly mirrored New Zealand’s regulatory environment.
The company has reorganised its executive team around regional leadership, replacing a centralised global structure with country-based management in New Zealand, Australia and North America.
Scott said eight of the nine executive leadership roles had been restructured, generating about $3.8 million in savings while shifting resources from back-office functions into customer-facing roles with the help of AI-driven productivity gains.
He also indicated the search for a permanent chief executive was nearing completion.
“Our aim is that soon after this ASM… we’ll be in a position to announce an appointment,” Scott said.
Chief financial officer Ciara McGuigan said FY26 reflected “a year of review and reset”, with the company booking $152.9 million of non-cash accounting adjustments, including the previously announced $134.7 million impairment of its North American business.
In May the company reported its full year results, with a net loss after tax of $161.1 million for the year ending March 31.
Revenue for the year was $195 million, while annual recurring revenue finished at $174.3 million. Normalised EBIT was $2.9 million, reflecting increased investment in platform stability, customer service and product improvements.
North America remains a significant challenge.
North American general manager Jim Brailey acknowledged the business had not been sufficiently mature to compete in the large enterprise segment and said further customer losses were expected.
“We do anticipate that we’ll see further reduction in our customer base, particularly in large enterprise,” Brailey said, adding the immediate goal was to return the region to free cash flow breakeven through stronger customer relationships and operational discipline.
Meanwhile, EROAD highlighted universal electronic road user charges (eRUC) as one of its biggest long-term growth opportunities.
General manager Sabine Roberts said expanding road user charging beyond heavy vehicles could increase EROAD’s addressable market from around 3% of New Zealand’s vehicle fleet to almost the entire fleet of about 4.9 million vehicles.
She said the company planned to launch a direct-to-consumer app before expanding into fleets and adjacent services such as tolling, usage-based insurance and congestion charging.
Full government rollout is an “accelerator but not a dependency,” Roberts said.
The shareholder meeting also delivered a clear endorsement of the existing board.
Shareholders elected Ryan Brosnahan and Ian Whiting as directors, while rejecting resolutions to elect Scott Smith and Steve Hammond and proposals to remove executive chair John Scott and director Sara Gifford.
EROAD’s share price has fallen 28.8% over the past 12 months to NZ$1.02. The stock peaked at $2.94 in September 2025 before tumbling and has since stabilised around the $1 mark.
