Transurban Group (TCL) H1 2026 earnings summary

Executive summary

• Proportional total revenue rose 6.0% year-over-year to $2,019m, with proportional EBITDA up 21.6% to $1,592m and proportional operating EBITDA up 6.4% to $1,545m, reflecting strong operational performance and margin expansion.

• Major projects delivered include the opening of the West Gate Tunnel in Melbourne (December 2025) and 495 Northern Extension in North America, both ahead of schedule, adding significant new capacity.

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

• North America delivered a step change in free cash, with 1H26 FCF at 93% of FY23 full-year FCF for NA assets, driven by new assets and strong demand.

• Net profit after tax improved from a $15M loss to a $343M profit, with profit attributable to security holders at $298M.

Financial highlights

• Proportional toll revenue up 6.4% to nearly $2 billion, supported by traffic and new capacity.

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

• Statutory profit after tax was $343m, up from a $15m loss in 1H25, driven by higher toll revenue and lower net finance costs.

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

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

Outlook and guidance

• FY26 distribution guidance maintained at 69cps, a 6.2% increase, expected to be 95–105% covered by Free Cash.

• Cost growth for FY26 expected to remain below inflation, excluding new asset costs.

• New assets expected to add 3-4% to cost base, with ongoing focus on efficiency.

• Pipeline includes further capacity projects in Australia and North America, with Logan West upgrade and M7–M12 Integration Project progressing.

• Three major projects opening in FY26: West Gate Tunnel, M7-M12 integration, and 495 Express Lanes extension.