Transurban shares dip after in-line FY24 result
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More news: Shares in Transurban lowered on the ASX after the toll roads operator delivered a FY24 result in line with analysts' expectations.
Transurban shares were down 1.4% to $12.70 by 12:15pm AEST, having fallen nearly 10% over the last 12 months.
RBC Capital Markets analyst Owen Birrell noted that Transurban's proportional EBITDA result was 1% below consensus while FY25 distribution guidance was in line with average forecasts.
Small misses to earnings in Sydney and Melbourne were offset by a small beat in Brisbane and significant earnings growth in North America that came in 11% higher than RBC's estimate.
Transurban lifts dividend as full-year profit soars
The news: Toll roads giant Transurban expects to lift its FY25 distribution after full-year profit soared on the back of traffic growth in all regions and the opening of new assets.
The numbers: The company’s profit for the year to 30 June more than quadrupled to $376 million. Toll revenue rose 6.7% to $3.54 billion, although overall revenue slipped 0.9%. Earnings climbed 7.5% to $2.63 billion, with its EBITDA margin improving to 73.1%. It will pay a final dividend of 32 cents a share, lifting the full-year payout by a previously-flagged 7%.
The context: CEO Michelle Jablko said the results highlighted continued traffic growth across Transurban’s markets and a continued focus on delivering value for stakeholders.
The group gets nearly half of its toll revenue from Sydney, where the NSW government is pushing to renegotiate tolling contracts on almost a dozen motorways, after an independent review recommended the government taking back control and reducing bills for drivers.
What they said: “We are committed to working with the NSW government on potential toll reform, to explore solutions to improve customer outcomes while protecting the $36 billion investment made by Transurban and its partners in Sydney over the past two decades," Jablko said in a statement.
Transurban has outlined an improved distribution of 65 cents a share for the current 2025 financial year.
The source: ASX announcement
