Tourism Holdings Limited reported a statutory net profit after tax of NZ$39.9 million for the year ended June 30, 2026, reversing a NZ$14.1 million loss in FY25 as restructuring initiatives advanced. Underlying net profit after tax rose 34% to NZ$46.1 million, driven by an 11% increase in rental revenue to NZ$517.5 million, though sales of goods fell 22% to NZ$335.4 million.
The company achieved underlying EBIT of NZ$105.4 million, up 17%, and underlying EBITDA of NZ$222.4 million, a 14% increase. Cost savings of approximately NZ$5 million were realized across labor, corporate and digital functions in FY26, with an additional NZ$2.5 million in annual savings expected once the Brisbane factory sublease is finalized. The UK and Ireland business generated proceeds of about NZ$57 million from divestment, including NZ$8 million of goodwill.
Net debt declined to NZ$436 million at June 30, 2026, down from NZ$492 million a year earlier, while leverage improved to 2.32 times from 2.99 times. Net operating cash flow surged 67% to NZ$67.3 million, and the equity ratio rose to 41% from 36%. The company’s total rental fleet expanded 11.5% year-over-year to 8,160 vehicles on average, with 8,587 vehicles in service as of June 30 across New Zealand, Australia and North America.
Dividends were increased 62% to 10.5 cents per share for the full year, with a final payment of 7.5 cents declared for FY26. The payout ratio stood at approximately 50% of underlying NPAT, within the company’s 40–60% policy range. Shareholders will receive the dividend on October 2, following an ex-dividend date of September 17.
Takeover interest has intensified, with competing non-binding proposals ranging from NZ$3.10 to NZ$3.40 per share, exceeding the BGH consortium’s initial NZ$2.30 offer in June 2025. Due diligence is expected to continue for about six more weeks. The company’s shares were trading at NZ$2.86 on Tuesday, near the top of their 52-week range of NZ$1.97–NZ$2.98.
Management noted that a booking gap resulting from the March 2026 Middle East conflict is unlikely to be fully recovered in FY27. Forward rental revenue intakes showed strength in New Zealand, up about 15% overall and 40% in the last four weeks, while Australia saw a 5% increase and recent intake growth of 15%. The U.S. market experienced late booking activity with recent intake improving 45% year-over-year.
