Viva Energy Group (VEA) H2 2025 earnings summary

Executive summary

• Operational performance improved in the second half of 2025, with strong momentum and underlying EBITDA growth across all business segments.

• Major transition activities, including ERP and supply chain separation from Coles, were completed, enabling independent operations and integration of acquired businesses.

• Completed major acquisitions (Liberty Oil Convenience, OTR), expanded retail footprint, and commissioned Ultra Low Sulphur Gasoline units.

• Leadership transition in retail was seamless, with a focus on execution and capability uplift.

• Embedded safety culture and maintained strong personal safety performance during significant construction and integration activities.

Financial highlights

• Group EBITDA (replacement cost basis) was AUD 701 million (or $700.9M), down 6% year-over-year, with a strong second half (AUD 396 million, up 33% vs. prior year period).

• Underlying NPAT (replacement cost) was AUD 184 million (or $183.6M), impacted by higher depreciation, finance costs from acquisitions, and elevated debt.

• Significant items totaled AUD 664 million pre-tax, mainly a non-cash impairment of AUD 556 million on retail sites.

• Operating free cash flow was AUD 542 million, including AUD 105 million of one-off transition and integration costs; underlying free cash flow was $87.4M, down 35.3% year-over-year.

• Final fully franked dividend of AUD 0.0394 per share (6.77 cps), representing a 60% payout ratio for C&I and C&M NPAT, a 36% decrease year-over-year.

Outlook and guidance

• 2026 expected to build on 2025 momentum, with retail growth and improved cash generation from refining; positive outlook for FY26 with further synergy realization.

• CapEx to moderate to AUD 350–400 million in 2026, supporting improved net cash flow and balance sheet strength.

• Gearing targeted to reduce from 3x to 2x net debt/EBITDA by end of 2027, supported by earnings growth, FSSP renegotiation, and surplus land sales.

• OTR conversion program to resume in earnest in the second half of 2026, with 40–60 new stores planned.

• Expecting stable operations in refining with no major maintenance planned and strengthening retail performance as integration completes.