Tourism Holdings Rentals (THL) H1 2026 earnings summary

Executive summary

• Statutory NPAT rose 17% to $29.6M and underlying NPAT increased 11% to $29.5M in H1 FY26, with strong rental revenue growth and forward bookings, especially in New Zealand, Australia, and Canada.

• FY26 is a transition year, with underlying NPAT guidance of $43–$47M, representing 50–65% growth over FY25.

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

• Strategic initiatives included divestment of UK & Ireland, closure of Brisbane manufacturing, retail rationalisation in Australia, and North America fleet integration.

• Interim dividend of 3.0 cents per share declared, up 20% year-over-year, with full-year dividends expected to rise ~55%.

Financial highlights

• Net operating cash flow rose 67% to $40.5M in H1 FY26, driven by improved EBITDA and lower net CapEx.

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

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

• Net debt at $493M at half-year, already reduced by $30M, with a target below $400M by year-end.

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

Outlook and guidance

• FY26 underlying NPAT expected between $43M and $47M, up 50–65% year-over-year.

• Forward rental revenue up 20–25% in NZ/AU, 30% in Canada, but down 25–30% in the U.S.

• Net debt/EBITDA ratio expected to fall below 2x by year-end.

• Vehicle sales expected to rise in the second half compared to the prior period, with RV sales markets showing early signs of improvement.

• Growth roadmap targets 9,000 vehicles by June 2028, with operating cash flow expected to sustain growth.