Atlas Arteria (ALX) H2 2025 earnings summary

Executive summary

• Proportional toll revenue increased 9.4% and proportional EBITDA rose 9.3% year-over-year, driven by steady traffic growth, CPI-linked toll increases, and favorable FX movements, especially in France and on Dulles Greenway.

• Statutory net profit after tax was $181.8m, down 39% year-over-year, mainly due to the French Temporary Supplemental Tax (TST) despite strong traffic and revenue growth.

• Free cash flow per security was slightly down due to the French government's temporary supplemental tax (TST), but distributions remained stable at AUD 0.40 per security for 2025, with the same guidance for 2026.

• Leadership changes included new CFOs and CEOs at Dulles Greenway and Chicago Skyway, with a streamlined executive team focused on simplifying the organization and enhancing accountability.

• Strategic priorities include unlocking value from existing businesses, optimizing capital allocation, and pursuing disciplined growth through partnerships and new opportunities.

Financial highlights

• Proportional toll revenue grew 9.4% year-over-year, supported by traffic growth, toll price increases, and FX gains.

• Proportional EBITDA margin remained strong at 75%.

• Operating free cash flow per security was 34.9 cps, slightly down from 36.3 cps in 2024.

• Distributions paid totaled AUD 580 million (AUD 0.40 per security), unchanged from 2024.

• Cash received from businesses was AUD 549 million, down 2% from 2024 due to TST impact.

Outlook and guidance

• Distribution guidance of AUD 0.40 per security (40 cps) confirmed for both 2025 and 2026, with future distributions targeted at a minimum of 40 cps.

• 2026 distribution may be at the top or slightly outside the 90%-110% free cash flow payout range due to TST extension.

• Free cash flow expected to grow over the next few years, with continued focus on portfolio optimization.

• FX hedge program implemented to protect EUR distributions over the next 12 months.

• Centralized costs for 2026 guided at $38m–$42m, with growth-related activities expected at $5m–$10m per year.