Experience (EXP) H2 2025 earnings summary

Executive summary

• Revenue increased 6% year-over-year to $134.3 million, with underlying EBITDA up 34% to $19.3 million, driven by strong performance in adventure and skydive segments.

• Underlying net profit after tax before goodwill impairment was $2.1 million, reversing a prior year loss; statutory loss after tax was $1 million due to a $3.1 million goodwill impairment.

• Strongest trading volumes, revenue, and cash flow since FY19, with improved trading conditions in Australia and New Zealand due to tourism growth.

• Management focused on business performance, trading momentum, growth, and portfolio quality, with strategic priorities on earnings optimisation and cost efficiencies.

• Fully franked dividend of 0.25 cents per share declared, the first since FY2018.

Financial highlights

• Revenue grew 6% year-over-year to $134.3 million; underlying EBITDA rose 34% to $19.3 million.

• Underlying EBIT was $6.6 million, up from $1.5 million in FY24; underlying net profit after tax improved to $2.1 million from a $0.1 million loss.

• Operating cash flows rose 53% to $17.6 million; free cash flow increased to $7.5 million.

• Net debt at year-end was $10.9 million, with a net debt to underlying EBITDA ratio of 0.6.

• Net tangible assets per share increased 5% to 9.7 cents.

Outlook and guidance

• FY26 has started strongly, with July revenue up 17% year-over-year and underlying EBITDA up 54%.

• Management remains confident in capitalizing on continued tourism growth in Australia and New Zealand, supported by recent interest rate cuts.

• Strategic priorities for FY26 include organic growth, expansion of Treetops Adventure, and enhancement of the Reef Unlimited fleet.

• Management targets over $2 million in annualized cost savings through procurement initiatives.

• Focus on free cash flow generation and ongoing share buyback.