Experience Co Ltd (ASX: EXP) reported a 2% increase in revenue to $129.6 million for the fiscal year ended June 30, 2026, though underlying earnings before interest, taxes, depreciation and amortization declined 8% to $17.6 million.
The group's underlying net profit after tax fell 30% to $2.0 million, while a statutory loss after tax of $0.3 million was recorded for continuing and discontinued operations, an improvement from a $1.0 million loss in the prior year. Revenue growth was driven by the Adventure Experiences division, which posted a 6% rise to $65.8 million, while the Skydiving division saw a 2% decline to $63.8 million.
Underlying EBITDA for the Skydiving division decreased 3% to $9.7 million, with Skydive New Zealand reporting 7% revenue growth in AUD terms despite an 11% depreciation of the NZD against the AUD. Skydive Australia experienced a 7% decline in both revenue and passenger volumes. Operational adjustments included consolidating Victorian operations into the Great Ocean Road drop zone and closing the Yarra Valley site.
The Adventure Experiences division contributed $65.8 million in revenue, up 6% year-over-year, but underlying EBITDA fell 4% to $15.4 million. Reef Unlimited reported 7% revenue growth with 261,000 passengers, while Treetops Adventure saw 2% revenue growth on flat volumes of 396,000.
Net debt remained broadly flat at $10.7 million, with gross borrowings decreasing by $5.8 million to $16.2 million. Cash and cash equivalents declined to $5.4 million from $11.1 million, while free cash flow fell 69% to $2.3 million. The group maintained $15.8 million in undrawn funds under its Commonwealth Bank of Australia debt facility.
Management noted a challenging operating environment in the second half of FY26 and indicated that earnings recovery would take longer than previously anticipated. The company is pursuing cost efficiency programs targeting annualized savings of more than $2 million and has expanded its footprint with acquisitions including West Beach Adventure in South Australia and the Canberra Treetops site.
Experience Co also announced a proposed non-binding agreement to combine its Skydive and Aviation business with Inflite Aviation, with an estimated enterprise value of approximately $110 million for the merged entity. The total consideration for Experience Co is around $65 million, including $41 million in upfront cash and a 32.5% equity stake valued at $19 million.
