Kelsian Group (KLS) H2 2024 earnings summary

Executive summary

• Achieved record FY 2024 results, with revenue up 42.2% to AUD 2,016.8 million, driven by the first full-year contribution from the AAAHI US acquisition and new Sydney contracts, with over 367 million customer journeys, up 31% year-over-year.

• Underlying EBITDA rose 63.9% to AUD 265.4 million; NPATA increased 32.3% to AUD 92.6 million; EPS rose 13.3% to AUD 0.34.

• 89% of FY 2024 revenue is from long-term, government-backed contracts, providing predictable, low-risk earnings and cash flows.

• Integration of AAAHI in the US exceeded expectations, with 100% contract renewal and organic expansion into new markets.

• Strategic investments in fleet electrification, property assets, and new vessels underpin long-term growth and operational resilience.

Financial highlights

• Revenue exceeded AUD 2 billion, up 42.2% year-over-year, with underlying EBITDA up 64% to AUD 265.4 million and EBITDA margin improved to 13.2% from 11.4%.

• Underlying EBITA up 48.9% to AUD 156.2 million; NPATA up 32.3% to AUD 92.6 million.

• Net operating cash flow reached a record AUD 146.5 million, up 13.6% year-over-year, with cash conversion at 92.3%.

• Fully franked final dividend of AUD 0.095 per share, at the low end of the 50–70% payout policy; full year 17.5c (FY23: 17.0c).

• Cash reserves at period end were AUD 134.4 million.

Outlook and guidance

• FY 2025 underlying EBITDA guidance of AUD 283–295 million, skewed to 2H, reflecting further earnings growth.

• Full-year contributions expected from new Sydney contracts, Bankstown rail replacement, and ramp-up of US industrial contracts.

• CapEx for FY 2025 estimated at AUD 185 million, with over half being one-off investments; CapEx expected to normalize to AUD 100 million from FY 2026.

• Depreciation forecast at AUD 117 million and interest at AUD 59 million for FY 2025.

• Focus on organic growth, small bolt-on acquisitions, and completion of major vessel and infrastructure projects.