Kelsian profit dips 6% to $55m amid capital investment program
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The news: Kelsian Group has delivered a year-on-year decline in net profit after tax of 6.1% to $54.5 million, as the bus and ferry operator delivered high levels of capital investment
The numbers: The full-year profit figure is lower than the $58.0 million reported in FY24 but ahead of the $52.1 million market consensus estimate, according to Visible Alpha figures.
FY25 revenue came in at $2.21 billion, which is 10% higher than the $2.02 billion reported in FY24. It is above analyst expectations of $2.18 billion. Underlying EBITDA, adjusted for one-off costs, increased year on year by 7.4% to $285.0 million.
Total capital investment hit $165.1 million, excluding proceeds from asset sales worth $27.6 million. Kelsian said this is inline with prior guidance of $185 million when adjusted for some delays.
A final fully-franked dividend of 9.5 cents per share was declared, putting the total dividend at 17.5 cents. This is in line with the payout in FY24 and more than the expected 16.8 cents.
Underlying EBITDA for FY26 is expected to come in between $297 million and $310 million.
The context: During the period, Kelsian secured several contract extensions and renewals as well as new contract wins in the US. The company also secured two contract extensions and a new contract in Singapore.
A Bankstown rail replacement contract in Sydney commenced in September 2024 and Kelsian is currently negotiating a two-year extension for its contract for Sydney's Region 6, which would commence in July 2026.
While Kelsian hit a record operating cashflow of around $205.2 million, it also reached the peak of its capital investment cycle in strategic assets at $140.5 million.
What they said: "Kelsian delivered a strong FY25 result with growth in revenue, EBITDA and EBIT achieved across all three divisions and geographies," Kelsian CEO Graeme Legh said.
"The FY25 results were in line with expectations and were achieved despite ongoing cost pressures in an inflationary environment."
