Webjet Group (WJL) H2 2025 earnings summary

Executive summary

• Delivered FY25 results in line with expectations, with underlying EBITDA of $39.4 million and underlying NPAT of $20.9 million, reflecting strong free cash flow and disciplined cost management as a standalone company post-demerger.

• High conviction in new strategy and five-year growth plan, targeting long-term value creation for customers and shareholders.

• Corporate overheads declined due to transition to a standalone structure; solid operational execution during significant change, including a recent merger and demerger.

• Demerger from Web Travel Group completed on 30 September 2024, with predecessor accounting adopted for continuity and comparability.

Financial highlights

• FY25 group bookings: 1.53 million (down 7% year-over-year); TTV: $1.5 billion (down 6%); revenue: $139.7 million (down 3%).

• Underlying EBITDA: $39.4 million, up 1% year-over-year; EBITDA margin: 28.2%.

• Underlying NPAT: $20.9 million for FY25, up 18% year-over-year.

• Net cash: $118.1 million as of 31 March 2025; no debt.

• No dividends declared for FY25 due to lack of franking credits; dividends to commence FY26 with a target payout ratio of 40-60% of underlying NPAT.

Outlook and guidance

• FY26 is a transition and investment year, with up to $15 million planned investment to support the strategic plan, including $10 million OPEX and $5 million CAPEX.

• Underlying EBITDA for FY26 expected to be broadly in line with FY25, with weighting to the second half, assuming no further deterioration in trading.

• Dividends anticipated for FY26, with a target payout ratio of 40-60% of underlying NPAT.

• On-market buyback deferred due to recent M&A activity and rejected takeover interest from BGH Capital, but remains a priority when circumstances permit.

• Strategic plan targets doubling TTV to $3.2 billion+ by FY30, focusing on international flights, hotels, packages, and business travel.