Transurban FY26 Proportional Toll Revenue Up 6.7%

Transurban Group (ASX:TCL) reported FY26 proportional toll revenue, a non-IFRS measure, up 6.7% to $3,982 million and proportional operating EBITDA up 7.5% to $3,063 million, an operating EBITDA margin of 75.7% of total proportional revenue of $4,047 million against a restated 74.9% in FY25. Proportional EBITDA was $3,110 million. On a statutory basis, toll revenue was $3,206 million against $3,029 million and profit after tax was $432 million, compared with $178 million in FY25. Average daily traffic increased 2.2%, a figure Transurban normalises for the West Gate Tunnel opening and the A25 sale, with growth in all regions; on a like-for-like basis excluding the West Gate Tunnel, group average daily traffic increased 1.4%. Proportional operating costs were $984 million, an increase of 3.3%, or growth of 0.7% on a like-for-like basis excluding costs associated with new assets. Corporate liquidity was $3.7 billion at 30 June 2026, comprising $0.4 billion of corporate cash and $3.3 billion of undrawn corporate borrowing facilities and excluding cash held from the proceeds of the A25 divestment, and the debt book was 87.8% hedged with the weighted average cost of Australian dollar debt increasing marginally to 4.8%.

The FY26 distribution was 69.0 cents per stapled security, representing 6.2% growth and in line with guidance provided at the FY25 results, and was 98.1% covered by free cash of 67.7 cents per security excluding capital releases and cash reserves. A distribution of 35 cents per security for the six months ended 30 June 2026 will be paid on 18 August 2026, will not be franked, and the distribution reinvestment plan will not operate. Transurban expects an FY27 distribution of 72 cents per security, with free cash coverage for FY27 expected to be slightly below the targeted 95% to 105% range, and noted that distribution guidance is subject to traffic performance and macroeconomic factors and will ultimately be determined by the Board. The company said the Direct Deal proposed for toll reform with the NSW Government has been finalised, with implementation remaining subject to definitive agreements and various approvals including financier consents and regulatory approvals. Chief Executive Officer Michelle Jablko said FY27 is a transitional year as the group adjusts for the M5 West ownership changes.