Transurban Group (TCL) H1 2026 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $2,019 million, with strong traffic growth and margin expansion across all markets, and ADT up 2.5% to 2.6 million trips.

• Major projects delivered include the opening of the West Gate Tunnel in Melbourne and the 495 Northern Extension in North America, both ahead of schedule, adding significant new capacity.

• North America delivered a step change in performance, with 22% EBITDA and FCF growth, matching all of FY23 in just the half, driven by new assets and strong demand.

• Statutory profit after tax reached $343 million, reversing a prior loss, with net profit attributable to security holders at $298 million.

• Distribution per security increased 6.3% to 34cps, fully covered by Free Cash, with FY26 guidance reaffirmed at 69cps (6.2% growth).

Financial highlights

• Proportional toll revenue up 6.4% to nearly $2 billion, with statutory revenue at $1,983 million and strong margin improvement to 76.5%.

• Proportional operating costs rose 4.6% to $474 million, remaining below inflation despite new asset ramp-up.

• Free Cash increased 2.4% to $1,085 million, impacted by timing of finance costs and early refinancing, expected to normalize in the second half.

• Statutory profit after tax was $343 million, up from a $15 million loss in 1H25, with earnings per security improving to 9.6 cents.

• Weighted average cost of AUD debt rose 9bps to 4.6%, with 88.6% of debt hedged and maturity extended to 6.9 years.

Outlook and guidance

• FY26 distribution guidance reaffirmed at 69cps, representing 6.2% growth, with payout ratio expected in the 95–105% range and strong Free Cash coverage.

• Cost growth for FY26 expected to remain below inflation, excluding new asset costs, with new assets expected to add 3–4% to the cost base.

• Pipeline of growth opportunities in existing and new markets, including further capacity projects in Australia, North America, and Queensland.

• Guidance subject to traffic performance and macroeconomic factors.