Transurban Group (TCL) H2 2025 earnings summary

Executive summary

• Achieved strong full-year results with 5.6% revenue growth and 7.4% EBITDA growth, while keeping costs flat.

• Outperformed cost guidance, with annualised cost savings from organisational restructure and strong EBITDA growth, especially in North America.

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

• Enhanced customer value through digital initiatives, travel time savings, and safety enhancements, with 1.6 million customers joining Linkt Rewards.

Financial highlights

• Proportional toll revenue rose 5.6% to $3.7 billion, supported by resilient traffic across all markets.

• Proportional operating EBITDA grew 7.4% to $2,848 million, with a margin improvement of 140 basis points.

• Free cash increased 7.6% to $2,008 million, with distributions 99.5% covered by free cash.

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

• Group debt at $26,821 million, with corporate liquidity of $3,737 million and weighted average debt maturity of 6.6 years.

Outlook and guidance

• Distributions expected to increase by 6% in FY 2026, with a payout ratio policy of 95%-105%.

• Cost growth guidance for FY 2026 remains below inflation, excluding new assets.

• West Gate Tunnel expected to be broadly neutral to free cash in FY 2026, with positive contributions ramping up in later years.

• Balance sheet capacity exceeds $1.7 billion at June 2025, supporting future growth opportunities.

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