Flight Centre Targets FY27 Underlying PBT of $290m-$325m

Flight Centre (ASX:FLT) used its AGM speeches to set an initial FY27 underlying PBT target of $290million to $325million and to warn that the first half will fall below last year's result.

The range represents 4-17% growth on the $278million FY26 result, and the managing director says it is, at the midpoint, broadly in line with current market expectations. The company expects the first half to be closer to 31% of the full-year result, with first-half underlying PBT below last year's $125million. It lists four factors weighing on the first half, a combined drag of circa $30million: moving Productive Operations and World360 Rewards costs above the line, up to $5million of investment in Northern Hemisphere corporate SME growth, a non-recurring $5million bad debt reversal in Asia last year, and global touring moving from a $3.5million profit to an expected $1.5million loss. Group-wide net interest expense is expected to be $6million-$8million higher in the first half. FCM has secured accounts with estimated annual spends of $400million so far this year, mostly set to start trading in the second half. The Chairman said the company may incur a first strike against the Remuneration Report.

The guidance is an initial target. The company says the strength of the leisure fourth quarter recovery, returns on corporate investments and its ability to offset higher net interest expense and weaker touring will determine where it lands, and that Middle East tensions continue to affect some businesses.