Kelsian Group H1 Earnings Call Highlights

Adelaide — Kelsian Group has posted a record first-half for the six months ended 31 December 2025, lifting revenue 10.6% to AUD 1.186 billion and upgrading full-year underlying EBITDA guidance to AUD 303–312 million on the back of indexation-linked contract growth, booming U.S. employee shuttle demand, and resilient marine and tourism trading.

Chief executive Graeme Legh told analysts the result was built on “both sides of the ledger,” with revenue and earnings expanding in tandem. Underlying EBITDA rose 16.4% to AUD 153.8 million, underlying EBIT jumped 26.5% to AUD 75.3 million, and profit before amortisation surged 32.2% to AUD 52.5 million. Net profit after tax leapt 62% to AUD 32.4 million, while the board maintained a fully franked interim dividend of AUD 0.08 per share and kept the dividend discount plan open.

Cash generation remained robust: operating cash flow climbed 26.1% to AUD 83.1 million, equating to a 95% conversion rate and gross operating cash of AUD 100 million. Net debt finished December at AUD 664.9 million, translating to pro-forma leverage of 2.7×, down from 3.2× four years earlier. All bank covenants, management stressed, were “comfortably met.”

Capital discipline stayed on script. Kelsian deployed AUD 78.3 million on new and replacement assets—vessels, buses, motor coaches—resulting in net capex of AUD 76 million after routine disposals. Full-year FY2026 capex is now forecast at AUD 135 million, including an extra AUD 7 million to accelerate U.S. shuttle fleet expansion.

The group also confirmed binding agreements to divest its entire tourism portfolio to Journey Beyond for AUD 161 million, with completion slated for first-half FY2027 pending ACCC and FIRB clearances. Two additional tourism properties will be sold separately for roughly AUD 3 million. Once settled, Kelsian will re-emerge as a “global commuter and contracted transport business,” Legh said, with marine operations retained under long-term service contracts.

Divisional snapshot

Australian Bus: Contract indexation and the Bankstown rail-replacement service underwrote earnings, offsetting electric-bus and depot delays plus elevated maintenance on ageing diesel fleets. A two-year extension for Sydney Region 6 is being finalised, effective July 2026, alongside a new Queensland contract for Ipswich and Logan services starting November 2025.

International Bus: The segment delivered EBIT growth above 130%, led by U.S. LNG-linked and technology-shuttle volumes. New depots in Texas and Louisiana have been leased to support Gulf Coast growth, while Singapore’s five-year Sentosa contract has commenced and the recent South Wales Transport acquisition positions the group for further U.K. tenders.

Marine & Tourism: Pricing initiatives and yield management lifted top-line and EBIT, despite scheduled out-of-water maintenance. Investment continues in new Kangaroo Island vessels and South Moreton Bay Island infrastructure, with the second vessel delivered in November.

Looking ahead, Legh flagged continued U.S. shuttle expansion, full-year Bankstown revenues, and AUD 4 million of Kangaroo Island mobilisation costs. January trading remains in line with expectations, driven by international bus momentum.