Aussie Broadband (ABB) H1 2026 earnings summary

Executive summary

• Delivered double-digit growth across all segments in H1 FY 2026, with strong organic and strategic expansion, positioning to become the third largest NBN service provider by end of 2026.

• Upgraded strategic ambitions: targeting over 1.5 million connections, AUD 2 billion revenue, and >13.5% EBITDA margin by FY 2028.

• Completed major acquisitions (AGL Telco, Nexgen) and divestments (Digital Sense Hosting, buddii) to sharpen focus on core telco services.

• Entered a six-year Wholesale Services Agreement with More/Tangerine, migrating 290,000 connections.

• Realigned into a segment-led operating structure to enhance customer focus and financial accountability.

Financial highlights

• Revenue up 8.4% to AUD 637.8 million compared to H1 FY 2025.

• Underlying EBITDA up 13.5% to AUD 74.7 million; underlying NPAT-A up 24.5% to AUD 31.3 million.

• EPS increased 26.5% to AUD 0.107; interim dividend of AUD 0.024 per share, up 50% year-over-year.

• Operating cash flow up 16% to AUD 57.1 million; cash conversion at 76.5%.

• Profit after tax was AUD 5.1 million, impacted by a AUD 14.8 million goodwill impairment.

Outlook and guidance

• FY 2026 EBITDA guidance revised to upper end of AUD 162–167 million, representing 17–21% annual growth.

• CapEx guidance unchanged at AUD 55–60 million for FY 2026.

• Confident in achieving >30% EPS CAGR and >13.5% EBITDA margin by FY 2028.

• Expected to become the third largest NBN provider in Q2 FY 2027 with over 1.25 million connections.

• Expect material uplift in earnings from More/Tangerine and AGL Telco migrations from FY 2027.