Transurban Group (TCL) H2 2026 earnings summary

Executive summary

• Adapted to macroeconomic and geopolitical headwinds, maintaining resilient traffic and strong commercial volumes, with a focus on customer value and digital innovation.

• Completed three major projects—West Gate Tunnel, 495 Northern Extension, and M7-M12 Integration—adding 144 lane km and improving travel times and customer benefits.

• Achieved positive outcomes in New South Wales toll reform, balancing customer benefits, cost-of-living relief, and investment protection.

• Maintained disciplined cost management, driving margin expansion, sustainable distribution growth, and operational efficiency.

• Strategic priorities included customer focus, operational efficiency, and a $10b+ pipeline of growth opportunities.

Financial highlights

• Statutory profit after tax reached $432 million for FY26, up from $178 million in FY25, driven by higher revenue and a $10 million gain on disposal of equity investment.

• Free Cash increased 5.1% year-over-year to $2,111 million, supporting a 6.2% rise in distributions per security, with 98.1% coverage by Free Cash.

• Proportional toll revenue grew 6.7% to $3,982 million, with operating EBITDA up 7.5% to $3,063 million and margin improving by 80bps to 75.7%.

• Proportional operating costs rose 3.3% to $984 million, with cost growth below inflation for the third consecutive year.

• U.S. business EBITDA contribution doubled over three years, with a 26% CAGR.

Outlook and guidance

• FY27 distribution guidance set at 72 cps per security, a 4.3% increase, with free cash coverage expected slightly below the 95-105% target range.

• FY27 is a transitional year due to M5 South-West ownership changes and timing of new Sydney capacity, but business fundamentals remain strong.

• Continued focus on cost discipline, targeting a fourth consecutive year of below-inflation cost growth and further efficiency opportunities.

• Over 90% of revenue is CPI-linked or fixed escalation, supporting medium-term outlook.

• Long-term growth supported by population increases, robust project pipeline, and government infrastructure investment in Australia and the U.S.