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, especially in France and on Dulles Greenway, and CPI-linked toll increases in several jurisdictions.

• 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 TST, but distributions remained stable at AUD 0.40 per security for 2025, with the same guidance for 2026.

• Leadership changes included a new CFO and appointments of CEOs at Chicago Skyway and Dulles Greenway, with a focus on simplifying the organization and enhancing decision-making.

• Strategic priorities include unlocking value from existing businesses, disciplined growth, and maintaining an optimal capital structure.

Financial highlights

• Revenue increased 9.4% year-over-year, supported by toll price increases, favorable FX movements, and traffic growth.

• EBITDA margin remained stable 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, mainly due to the TST impact.

Outlook and guidance

• Distribution guidance of AUD 0.40 per security (40 cps) confirmed for both 2025 and 2026, with distributions expected near or above the 90-110% free cash flow payout range due to TST.

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

• FX-hedge program in place to protect against currency fluctuations, with zero upfront cost.

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