Tourism Holdings Rentals (THL) H1 2026 earnings summary

Executive summary

• Statutory NPAT rose 17% to $29.6 million for H1 FY26, with underlying NPAT up 11% to $29.5 million, supported by strong rental activity and a 10% increase in the rental fleet to 8,688 vehicles.

• Total revenue increased 4% to $477.3 million, driven by 11% growth in services (mainly rentals) and a 4% decline in goods sales.

• Strategic initiatives included divestment of UK & Ireland business for ~$58.3 million, closure of Brisbane manufacturing, retail rationalisation in Australia, and North America fleet integration.

• Interim dividend increased 20% to 3.0 cps, fully imputed, with full-year dividends expected to be weighted 30% interim, 70% final.

• Net operating cashflows surged 67% to $40.5 million, with net debt at $493 million at December 2025 and expected to fall below $400 million by year-end.

Financial highlights

• Underlying EBIT rose 8% to $64.4 million; underlying EBITDA up 11% to $126.2 million.

• Basic EPS increased to 13.4c from 11.5c year-over-year.

• Group ROFE (TTM) was 7.5%, down from 8.1% in H1 FY25, but expected to improve.

• Net debt/EBITDA ratio at 2.3x, targeted below 2.0x by year-end.

• Ex-fleet sales margin normalized to 17.0% (down from 24.4%); retail RV sales margin at 6.5% (down from 9.7%).

Outlook and guidance

• Underlying NPAT for FY26 is forecast between $43 million and $47 million, reflecting 50–65% growth year-over-year.

• Forward rental revenue is up 20–25% in New Zealand and Australia, 30% in Canada, but down 25–30% in the U.S.

• Net debt expected below $400 million and net debt/EBITDA ratio below 2.0x by June 2026.

• Gross fleet capital expenditure for FY26 projected at ~$210 million.

• RV sales market recovery is not expected within the current financial year.