Atlas Arteria (ALX) H1 2026 earnings summary

Executive summary

• Statutory net loss after tax was $73.3 million for H1 2026, compared to a $73.3 million profit in H1 2025, due to significant non-operating costs from the IFM takeover, OTPP put option settlement, and related board changes.

• Underlying net profit after tax rose 29% year-over-year to $94.3 million, excluding one-off costs.

• IFM completed a takeover, increasing its stake to 67.4%, resulting in board restructuring and interim leadership appointments.

• Distribution guidance for 2026 reaffirmed at 40.0 cps, with 20.0 cps to be paid in October.

• Strategic focus shifted to optimizing value within the existing portfolio and pausing new brownfield opportunities.

Financial highlights

• Proportional toll revenue was $917.5 million, down 3.9% year-over-year due to FX, but up 0.6% on a constant currency basis.

• Proportional EBITDA was $702.6 million, down 3.6% year-over-year; EBITDA margin increased to 76.6%.

• Operating free cash flow per security was 19.1 cps, down 1.5% year-over-year.

• Distributions paid totaled $290.2 million.

• Net tangible asset backing per stapled security fell to $2.28 from $3.60 year-over-year.

Outlook and guidance

• Distribution guidance for 2026 remains at 40.0 cps, with a policy to pay out 90%-110% of free cash flow.

• No quantified distribution target will be provided beyond one year; future distributions will reflect actual free cash flow.

• 2027 guidance expected at the full-year 2026 results in February next year.