Transurban swings to loss, hit by ConnectEast feud
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The news: Toll road giant Transurban posted a $15 million first-half loss, missing expectations as litigation costs hit its bottom line.
The numbers: The company declared a 32-cent dividend, up from 30 cents a year earlier, and in line with expectations. It said it expects to pay 65 cents per share over the full year.
First-half proportional earnings before interest, tax, depreciation and amortisation—a key metric for analysts as it reflects income from toll roads—rose 1.7% to $1.31 billion.
That was also below consensus expectations of $1.44 billion. Excluding $143 million in costs related to litigation commenced by Eastlink-owner ConnectEast, the proportional "operating" EBITDA was $1.45 million. In December, Transurban flagged it may be liable to pay ConnectEast hefty fees after it lost a case against its competitor in Victoria.
The context: Analysts polled by Visible Alpha had expected interim net profit of $328.4 million.
The company said average daily traffic was up 2.4% to 2.5 million trips in the first half, helped by growth in all its existing toll roads and the opening of new ones.
“Active management” of costs led to a 3% fall in restated operational costs during the half.
What they said: “We’ve achieved strong momentum in the first half of 2025. Traffic is up across all markets and costs have been well managed, driving a 10% increase in free cash for the half,” CEO Michelle Jablko said in a statement.
“In addition to operating performance, Transurban remains focused on strengthening government partnerships, investment in customer value and laying the foundations for long-term growth.”
The source: ASX
