Kelsian Group (KLS) H1 2026 earnings summary

Executive summary

• Achieved record half-year results for the six months ended 31 December 2025, with revenue up 10.6%–11% and earnings growth across all divisions, driven by contract expansions, cost indexation, and strong US and Marine & Tourism performance.

• Statutory net profit after tax rose 61.6%–62% to $32.4 million; underlying NPATA up 32.2% to $52.5 million.

• Announced binding agreements to divest the Tourism Portfolio for $161 million in cash, with proceeds to reduce leverage and fund growth, and completion expected in H2 FY26–H1 FY27.

• Upgraded FY26 underlying EBITDA guidance to $303–$312 million, reflecting robust trading and operational performance.

• Over 12,900 employees operated 6,115 buses and 126 vessels, delivering 384 million customer journeys in the last year.

Financial highlights

• Revenue increased 10.6%–11% year-over-year to $1,186 million, driven by contract expansions and indexation.

• Underlying EBITDA rose 16.4% to $153.8 million; underlying EBIT up 26.5%–27% to $75.3 million.

• Net operating cash flow increased 26.1% to $83.1 million; cash conversion rate near 95%.

• Fully franked interim dividend maintained at 8.0 cents per share.

• Leverage reduced to 2.7x from 3.2x year-over-year.

Outlook and guidance

• Upgraded FY26 underlying EBITDA guidance to $303–$312 million, assuming stable operating conditions.

• Full-year EBITDA now expected to reach up to $412 million, reflecting strong momentum.

• Guidance subject to risks from economic, trading, currency, and interest rate fluctuations.

• Continued expansion in US employee shuttle contracts and new contract opportunities in Australia, New Zealand, and the UK.

• Focus on operational improvements, new contract ramp-ups, and global Finance & HR platform rollout.