Tourism Holdings Rentals (THL) H1 2026 earnings summary

Executive summary

• Statutory NPAT rose 17% to $29.6M and underlying NPAT increased 11% to $29.5M, with strong rental activity driving 11% services revenue growth and positive outlooks in all regions except the USA.

• Total revenue increased 4% to $477.3M, with sales volumes stabilizing after prior declines and gross margin trends consistent with the previous half.

• Strategic actions included divestment of UK & Ireland, closure of Brisbane manufacturing, retail rationalisation in Australia, and North America fleet integration.

• Net debt at $493M is trending down, with a target below $400M and debt-to-EBITDA below 2x by year-end, supported by strong operating cash flow.

• FY26 is a transition year, with expectations for a stronger FY27 and a long-term NPAT goal of $100M in 3–4 years.

Financial highlights

• Net operating cash flow rose 67% to $40.5M, driven by improved EBITDA and lower net CapEx.

• Underlying EBIT rose 8% to $64.4M; underlying EBITDA up 11% to $126.2M.

• Interim dividend of 3.0 cps declared, up 20% year-over-year, with full-year dividend expected to rise 55%.

• Basic EPS increased to 13.4c from 11.5c year-over-year.

• Group ROFE was 7.5%, down from 8.1% in H1 FY25 but expected to improve.

Outlook and guidance

• FY26 underlying NPAT guidance is $43–$47M, up 50–65% year-over-year, impacted by the UK divestment.

• Forward rental revenue up 20–25% in NZ/AU, 30% in Canada, but down 25–30% in the U.S.

• Net debt forecast below $400M and net debt/EBITDA ratio below 2.0x by June 2026.

• Vehicle sales expected to rise in the second half compared to the prior period, with fleet target of 9,000 vehicles by June 2028.

• RV sales markets remain challenging but show early signs of improvement.