Kelsian Group (KLS) Company Presentation summary

Company overview

• Operates 2,575 routes, including connections to 16 islands, with 378 million customer journeys in 2024.

• 89% of revenue is contracted, providing predictable and defensive earnings.

• Employs 12,626 people and manages 5,804 buses (193 zero emission) and 115 vessels as of December 2024.

• Largest integrated multi-modal transport and tourism provider in Australia, with global operations and high barriers to entry.

• Growth supported by long-term government and corporate contracts, diversified business model, and favorable macro trends.

Business update & financials

• Australian and international bus operations performed in line with expectations; marine & tourism in Queensland impacted by Cyclone Alfred.

• Q3 underlying EBITDA YTD was $210.4 million (to 31 March 2025), with strong revenue growth from Western Sydney contracts and Bankstown rail replacement.

• Leverage reduced to 2.9x at 31 March 2025, down from 3.2x at 31 December 2024.

• Sale and leaseback of three Western Australian bus depots completed, with $13.0 million received in Q3 and $7.3 million in Q4.

• FY25 tracking towards lower end of EBITDA guidance ($283–295 million); no change to FY25 capex estimate.

Strategic initiatives & outlook

• Renewed 5-year Woodlands Express contract in Texas; completed Huyton Travel (UK) acquisition and added Singapore routes.

• Exclusive negotiations to extend Sydney Region 6 bus contract ahead of June 2026 expiry.

• Efficiency programs and service changes in Sydney expected to improve contribution.

• Focus on delivering growth in the USA, organic growth in Singapore and UK, and commencing new Kangaroo Island contract.

• Finance and HR system upgrade underway, with ~$4 million one-off cost in 2HFY25.