Viva Energy Group (VEA) H2 2025 earnings summary

Executive summary

• Operational performance improved in the second half of FY25, with strong momentum and underlying EBITDA rising 33% year-over-year, driven by improved operations and market conditions.

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

• Leadership transition in retail was seamless, with a focus on execution, capability uplift, and embedded safety culture during significant construction and integration activities.

• Retail footprint expanded with the opening of 35 new OTR stores and full acquisition of Liberty Convenience.

• Successfully commissioned Ultra Low Sulphur Gasoline plant ahead of regulatory changes.

Financial highlights

• FY25 Group EBITDA (replacement cost) was AUD 701 million ($700.9M), down 6.4% year-over-year, with a strong second half (up 33% vs. prior year period).

• Underlying NPAT (replacement cost) was AUD 184 million ($183.6M), impacted by higher depreciation, finance costs, and integration expenses.

• 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 was 6.77 cps (AUD 0.0394 per share), a 36% decrease year-over-year, with a 60% payout ratio for C&I and C&M NPAT.

Outlook and guidance

• FY26 expected to build on FY25 momentum, with retail growth, improved cash generation from refining, and 40–60 new OTR stores planned.

• CapEx to moderate to AUD 350–400 million in FY26, 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.

• Retail integration to complete in FY26, with supply chain efficiencies and Coles supply exit in Q4.

• Minor refinery maintenance planned for FY26, supporting strong production.