Aussie Broadband’s shares fell 3.96% to AUD 4.85 on Monday after the company reported FY26 results that showed strong revenue and EBITDA growth but flagged margin pressures and regulatory challenges.
Underlying EBITDA rose 19.6% year-over-year to AUD 165.3 million, while revenue increased 9.2% to AUD 1.295 billion, the company said in its full-year presentation on August 24. Net profit after tax and amortisation (NPATA) climbed 25.8% to AUD 70.2 million, with underlying earnings per share at 23.9 cents. Operating cash flow surged 42.5% to AUD 167.2 million, supported by a cash conversion ratio of 101.2%.
The EBITDA margin expanded by 1.2 percentage points to 12.8%, though gross margin slipped 0.7 points to 35.9%. Operating expenses declined 1.3% as the company continued integrating acquisitions, including AGL Telco, which contributed 350,000 services at an 8.9% EBITDA margin. Total broadband connections exceeded 1.11 million, with residential and business segments both posting double-digit revenue growth.
Management highlighted the AGL Telco migration, which reached 116,000 broadband connections by the presentation date, with a five-year target of 500,000 connections. The company also completed migrations for Tangerine and More agreements, adding 269,000 broadband services. Strategic initiatives included the Nexgen acquisition to bolster SME capabilities and agentic AI solutions.
Forward guidance for FY27 sets underlying EBITDA at AUD 205-215 million, implying 24-30% growth from FY26. However, the company noted headwinds including a AUD 3 million negative impact from ACCC voice determination regulatory changes and AUD 5 million from business divestments. For the longer term, Aussie Broadband upgraded its “Look-to-28” targets, aiming for group revenue above AUD 2.0 billion, EBITDA margins above 13.5%, and NBN market share exceeding 17%.
CFO Darren Rowland emphasised the quality of growth, citing scale benefits and productivity improvements flowing to the bottom line. CEO Brian Maher added that the full benefits of technology modernisation are expected to materialise from FY29 onward.
