Kelsian Group (KLS) investor relations material

Executive summary

• Delivered record half-year results for the six months ending 31 December 2025, with revenue and earnings growth across all divisions, driven by contract growth, cost indexation, and strong US and Marine & Tourism performance.

• Statutory net profit after tax increased 62% to $32.4 million, with underlying NPATA up 32% to $52.5 million.

• Announced binding agreements to divest the tourism portfolio for $161 million, streamlining focus on core commuter and contracted transport operations; proceeds to reduce leverage and fund growth.

• Upgraded full-year FY26 earnings guidance following strong first-half performance.

• Strong operating cashflow and cash conversion, with cash conversion rate near 95%.

Financial highlights

• Group revenue increased 11% year-over-year to $1.186 billion, driven by contract expansions, indexation mechanisms, and improved Marine & Tourism trading.

• Underlying EBITDA rose 16.4% to $153.8 million; EBIT up 26.5% to $75.3 million.

• Net operating cash flow increased 26.1% to $83.1 million; cash conversion rate at 94.8%.

• Net profit after tax for the period rose 62% to $32.4 million.

• Interim dividend maintained at 8.0 cents per share, fully franked.

Outlook and guidance

• Upgraded FY26 underlying EBITDA guidance to $303–$312 million, up from $297–$310 million.

• Full-year EBITDA now expected to reach $412 million, reflecting strong momentum.

• Capex forecast at ~$135 million; depreciation ~$129 million; amortisation ~$32 million; interest ~$59 million; effective tax rate 22–25%.

• Continued expansion in US employee shuttle contracts and new contract opportunities in Australia, New Zealand, and the UK.

• Focus on operational improvements, new contract ramp-ups, and global Finance & HR platform rollout.