Transurban Group (TCL) H2 2024 earnings summary

Executive summary

• Achieved 7% distribution growth to 62.0 cps, fully covered by Free Cash, with proportional toll revenue up 6.7% and EBITDA up 7.5% to $2,631m, driven by margin expansion and disciplined cost control.

• Statutory profit after tax rose to $376m from $92m in FY23, supported by higher toll revenue and lower net finance costs.

• Major projects such as West Gate Tunnel, Logan West Upgrade, and M7-M12 Integration are progressing, with Rozelle Interchange and Fredericksburg Extension now open.

• Strategic focus on stakeholder value, new operating structure, and executive appointments to drive business performance and efficiency.

• Customer-centric initiatives, including expanded rewards programs and toll reform engagement, are enhancing value and supporting future growth.

Financial highlights

• Proportional toll revenue increased 6.7% to $3,535m; EBITDA grew 7.5% to $2,631m with margin up to 73.1%.

• Free Cash (excluding Capital Releases) rose 15% to $1,954m, with full-year distribution of 62.0 cps, 102% covered by Free Cash.

• Statutory profit after tax was $376m, up from $92m in FY23.

• Group debt increased to $25,868m, gearing at 39.9%, and weighted average cost of AUD debt at 4.5%.

• Liquidity remains strong with $4.2bn available, including $1.9bn post-distributions and debt repayments.

Outlook and guidance

• FY25 distribution guidance set at 65.0 cps, representing 5% growth, with Free Cash coverage expected in the 95%-105% range.

• $1.4bn committed project spend for FY25-26, with $0.9bn of Capital Releases expected in FY25.

• Underlying cost growth for FY25 expected to be similar to FY24, around 4%.

• Guidance subject to traffic performance and macroeconomic factors; final distribution determined by the Board.

• Strong liquidity of $4.2bn supports near-term commitments and growth opportunities.