Kelsian Group (KLS) H2 2025 earnings summary

Executive summary

• Delivered record FY25 results with revenue up 9.5% to $2,208.9 million and underlying EBITDA up 7.4% to $285 million, in line with guidance.

• All divisions reported growth in revenue, EBITDA, and EBIT, with strong contract renewal rates and operational excellence underpinning organic growth.

• Over 383 million customer journeys delivered, with all material contracts retained or renewed.

• CEO transition completed smoothly, with new leadership focused on operational improvements and strategic growth.

• Strategic review led to the proposed divestment of the Australian tourism portfolio and sale/leaseback of bus depots.

Financial highlights

• Underlying EBITDA: $285 million, up 7.4% year-over-year; underlying EBIT: $136 million, up 11.4%; NPAT-A: $94.8 million, up 2.4%.

• Statutory NPAT: $54.5 million, down 6.1% year-over-year.

• Record net operating cash flow of $205.2 million; cash conversion at 86.6%.

• Fully franked final dividend of 9.5 cents per share; full year dividend 17.5 cents per share.

• EPS before amortisation up 2.2% to 35 cents.

Outlook and guidance

• FY26 underlying EBITDA guidance: $297–$310 million, excluding any tourism portfolio divestment.

• FY26 CapEx expected at $128 million, including $20 million carry-forward and $23 million for new US contracts.

• Effective tax rate for FY26 forecasted at 22–25%.

• Focus on operational improvements, contract extensions, and capital-light growth in target markets.

• Target leverage range of 2.0–2.5x underlying EBITDA by June 2026.