Kelsian Group (KLS) H2 2025 earnings summary

Executive summary

• Delivered record FY25 results with revenue up 9.5% to $2.2 billion and underlying EBITDA up 7.4% to $285 million, in line with guidance.

• All divisions reported revenue and earnings growth, with over 383 million customer journeys and high contract renewal rates.

• CEO transition completed smoothly, with new leadership focused on operational improvements and strategic growth.

• Strategic review completed; divestment of the Tourism Portfolio underway and Hoxton Park depot acquired.

• Ongoing focus on operational excellence, safety, and sustainability, including a 12% reduction in injury frequency and 204 zero-emission buses in operation.

Financial highlights

• Group revenue rose 9.5% year-over-year to $2,208.9m; underlying EBITDA up 7.4% to $285.0m.

• Underlying EBIT increased 11.4% to $136.0m; underlying NPAT-A up 2.4% to $94.8m.

• Statutory NPAT: $54.5 million, down from $58 million last year.

• Net operating cash flow surged 39.9% to $205.2m; gross operating cash flow $290.8 million, with 87% cash conversion.

• Fully franked final dividend of 9.5 cents per share, full year 17.5 cents per share.

Outlook and guidance

• FY26 underlying EBITDA guidance: $297–$310 million, excluding any tourism portfolio divestment.

• FY26 CapEx expected at $128 million, including $20 million carry-forward and $23 million for new US contracts.

• Effective tax rate forecasted between 22% and 25%.

• Focus on operational improvements, contract extensions, and capital redeployment from Tourism Portfolio divestment.

• Strong pipeline for organic growth and new market opportunities in UK, QLD, Singapore, NZ, and USA.