Transurban Group (TCL) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance in FY25, with 5.6% revenue growth, 7.4% EBITDA growth, and 7.6% Free Cash growth, while keeping costs flat and delivering annualised cost savings from organisational restructure.

• Advanced major projects in Sydney, Melbourne, Brisbane, and North America, with $12.8–13 billion in projects opening in FY26 and over $10 billion in active project discussions.

• Enhanced customer value through digital initiatives, travel time savings, safety improvements, and expansion of Linkt Rewards to over 1.6 million members.

• Statutory profit after tax was $178 million, down from $376 million in FY24, impacted by non-recurring litigation and restructure costs.

Financial highlights

• Proportional toll revenue rose 5.6% year-over-year to $3,732 million, with resilient traffic across all markets.

• Proportional Operating EBITDA up 7.4% to $2,848 million, with margin improving to 75.1%.

• Free Cash increased 7.6% to $2,008 million, with distributions per security up 4.8% to 65cps, 99.5% covered by Free Cash.

• Operating costs remained flat at $947 million, ahead of guidance and below inflation.

• Group debt at $26,821 million, with 92.5% of the debt book hedged and weighted average cost of AUD debt at 4.5%.

Outlook and guidance

• FY26 distribution guidance set at 69cps, representing 6% growth, with payout ratio expected to remain within 95-105% of Free Cash per security.

• Cost growth guidance for FY26 remains below inflation, excluding new assets.

• Balance sheet capacity exceeds $1.7 billion at June 2025 to support growth pipeline.

• West Gate Tunnel expected to be broadly neutral to Free Cash in FY26, with positive contributions ramping up in later years.

• Maintenance spend anticipated to increase as assets enter new cycles, notably WestConnex.