Kelsian Group Ltd. posted record annual earnings for the 2026 fiscal year, with revenue climbing 8.8% to AUD 2.40 billion and underlying earnings before interest, taxes, depreciation and amortization up 10.8% to AUD 315.8 million.
Underlying net profit after tax rose 17.2% to AUD 111.1 million, while statutory net profit after tax reached AUD 63.5 million, an increase of 16.6% from the prior year. Earnings per share before amortization advanced 16.8% to AUD 0.149. The company’s shares gained 4.6% to close at AUD 5.00, within a 52-week range of AUD 3.68 to AUD 5.25.
Net operating cash flow increased 7.3% to AUD 220.1 million, with a cash conversion ratio of 91%. Net leverage fell to 2.46 times underlying EBITDA, down from 2.7 times a year earlier and within the target range of 2.0 to 2.5 times. Cash reserves stood at AUD 176.3 million at year-end.
The board declared a final fully franked dividend of AUD 0.10 per share, lifting the full-year payout to AUD 0.18 per share, an increase of AUD 0.005. Group CEO Graeme Legh described the year as another record result, noting progress in portfolio streamlining and balance sheet strengthening.
Revenue growth was driven by a 17.4% increase in the international bus segment, where underlying EBITDA surged 28.1%. The company cited strong demand from U.S. industrial employee shuttle contracts and charter activity, including a modest contribution from FIFA World Cup-related demand. Legh noted the event provided a few million AUD in direct benefits during the June period.
Kelsian operates 13,300 employees, 6,300 buses and 120 vessels across more than 100 locations in Australia, the U.S., Singapore, the U.K. and New Zealand. Over 90% of revenue is contracted or non-discretionary, supported by government and high-quality corporate customers. Safety performance improved, with lost time injury rates down 24% and total recordable injury rates down 23%.
Capital expenditure totaled AUD 133 million in FY2026, with AUD 31.6 million allocated to marine and tourism projects. Guidance for FY2027 projects underlying EBITDA between AUD 320 million and AUD 335 million, including AUD 3.5 million in delayed Kangaroo Island mobilization costs. The company also expects to complete the divestment of its tourism portfolio, excluding SeaLink Rottnest, for a total cash consideration of AUD 161 million in the first half of FY2027.
