Kelsian Group reported record financial results for the fiscal year ended June 30, 2026, with underlying earnings before interest, taxes, depreciation and amortization (EBITDA) rising 10.8% to AUD 315.8 million. The figure exceeded the updated guidance range of AUD 303 million to AUD 312 million and supported a 4.6% increase in the company’s shares to AUD 5.00.
Revenue grew 8.8% year-over-year to AUD 2.403 billion, while underlying net profit after tax and before amortization (NPATA) climbed 17.2% to AUD 111.1 million. Statutory net profit after tax rose 16.6% to AUD 63.5 million, though the figure was later adjusted to AUD 53.5 million after accounting for one-off costs. Earnings per share before amortization increased 16.8% to AUD 0.149.
The company’s net operating cash flow rose 7.3% to AUD 220.1 million, yielding a cash conversion ratio of 91%. Cash reserves totaled AUD 176.3 million, while net leverage declined to 2.46 times underlying EBITDA from 2.7 times a year earlier, returning within the target range of 2 to 2.5 times. Excluding government-backed contracted assets, leverage stood at 2.37 times.
Kelsian declared a final dividend of AUD 0.10 per share, fully franked, up from AUD 0.095 in the prior year. The full-year payout reached AUD 0.18 per share. The company maintained a price-to-earnings ratio of 20.48 and an EV/EBITDA multiple of 8.14.
Group CEO Graeme Legh highlighted the record result and balance-sheet strengthening, noting that over 90% of revenue was contracted or non-discretionary. He emphasized the protection provided by contractual indexation mechanisms against inflation and fuel-price volatility. Group CFO Andrew Muir cited the resilience of the business model and pointed to cash generation as a key strength, supported by long-term contracts.
Divisionally, the International Bus segment saw revenue rise 17.4% and underlying EBITDA jump 28.1%, driven by accelerated U.S. industrial shuttle contracts and charter activity tied to major events, including the FIFA World Cup. The Australian Bus division benefited from contract indexation, full-year contributions from Sydney’s Bankstown Rail Replacement services, and improved network efficiency. The company also secured a two-year extension of the Sydney Region 6 bus contract starting July 1, 2026, on improved terms.
In marine and tourism, Kelsian’s Journey Beyond unit agreed in February to acquire a tourism portfolio for AUD 161 million in cash. The SeaLink Rottnest business was excluded from the transaction to facilitate Australian Competition and Consumer Commission (ACCC) approval, ensuring it remains under Kelsian’s ownership alongside commuter ferry services. The remaining portfolio, accounting for over 90% of the original deal value, is expected to close in the first half of fiscal 2027. The Kangaroo Island ferry contract mobilization was delayed to October 2026, shifting approximately AUD 3.5 million of costs into fiscal 2027.
For fiscal 2027, Kelsian guided underlying EBITDA to AUD 320 million to AUD 335 million, inclusive of the Kangaroo Island mobilization costs and assuming no major environmental deterioration. Net capital expenditure is forecast at AUD 123 million, comprising AUD 85 million in sustaining maintenance, AUD 15 million carried forward from fiscal 2026, and AUD 23 million in committed growth investments. The company also plans to implement the Workday HR system in the first half of fiscal 2028, with estimated costs of AUD 12 million in fiscal 2027.
