Aussie Broadband delivers record FY26 earnings and lifts Look-to-28 ambitions
In its FY26 full year results presentation delivered on 24 August 2026, Aussie Broadband reported record earnings for the year ended 30 June 2026, with Group CEO Brian Maher and Group CFO Darren Rowland outlining a year in which organic growth and transformational acquisitions converged.
The telco recorded underlying EBITDA up 19.6% to $165.3m, earnings per share adjusted (EPSA) up 25.8% to 23.9c, and operating cash flow up 42.5% to $167.2m.
Management flagged three investor-facing catalysts. The total dividend was lifted 50% to 6.0c, a $115m share buy-back was announced, and the company upgraded its Look-to-28 ambitions.
Broadband connections across the Group surpassed 1.11 million at 30 June 2026, an increase of 41% on the prior corresponding period. The result reflected a year where sustained organic momentum sat alongside a structural repositioning of the portfolio.
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FY26 results by the numbers
Revenue grew 9.2% to $1,295.4m, while the EBITDA margin expanded 1.2 percentage points to 12.8%, reflecting operating leverage, cost control and emerging productivity benefits.
Notably, the strategic transactions completed during the year contributed essentially nothing to FY26 EBITDA. Management confirmed that the benefits from these deals are expected to flow from FY27, meaning the earnings growth delivered in FY26 was organic.
| Metric | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue | $1,186.5m | $1,295.4m | +9.2% |
| Underlying EBITDA | $138.2m | $165.3m | +19.6% |
| EBITDA margin | 11.6% | 12.8% | +1.2ppts |
| Underlying NPATA | $55.8m | $70.2m | +25.8% |
| EPSA | 19.0c | 23.9c | +25.8% |
| Operating cash flow | $117.3m | $167.2m | +42.5% |
| Total dividend | 4.0c | 6.0c | +50.0% |
FY26 in focus
Management characterised FY26 as a year of strong organic growth across all three operating segments, executed alongside strategic transactions that materially strengthened the Group’s growth platform.
Three strategic transactions reshape the growth platform
The presentation detailed a structural repositioning executed across all three operating segments, delivering a step change in scale, channel expansion and capability. The three transactions were:
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Residential — AGL Telco acquisition: adds approximately 350,000 services and expands channels into energy through an “evergreen partnership with AGL”. Management outlined a 5-year target of 500,000 connections, representing 12% of AGL’s 4.2 million energy customers.
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Wholesale — More & Tangerine wholesale services agreement: 269,000 broadband services at 30 June 2026, adding a banking channel through CommBank Yello and exposure to CBA customers through the More partnership. The company described this as the largest NBN migration to date, completed in June 2026.
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BE&G — Nexgen acquisition: enhanced SME capability, expanded national reach and a broadened product set including Agentic AI. Nexgen was consolidated from April 2026, contributing three months to FY26.
The company also divested Buddy and Digital Sense Hosting in March 2026. Together, the transactions position the Group for an FY27 earnings uplift with limited incremental capital and reduced execution risk following completion of the migration.
Understanding the migration model — why FY27 is the payoff year
A telco can complete a major acquisition and migration within a single financial year yet only realise the full earnings benefit in the following year. This is because acquired connections must be technically migrated onto Aussie Broadband’s network before the associated revenue and margin are fully recognised.
With the More and Tangerine migration completed in June 2026, FY27 is expected to capture the full-year contribution from those connections.
For investors reading the numbers, the distinction matters. Organic growth excludes acquired and migrated connections, while total connections growth includes them. This is why the same year can show 41% total connection growth alongside more modest organic figures.
Management also emphasises underlying EBITDA over statutory results, because non-cash amortisation of acquired intangibles and one-off transaction costs distort the reported figures.
Segment performance — organic growth across the board
Residential
Residential revenue rose 12.4% to $760.2m, driven by broadband connection growth, ARPU uplift and mobile momentum, with mobile services reaching 96,000. The company noted pricing rigour following its July 2025 pricing strategy, alongside resilient customer retention despite price increases.
Business, Enterprise & Government
BE&G revenue also increased 12.4% to $237.8m, supported by enterprise and government wins and continued organic growth. Management highlighted accelerating Nexgen momentum across voice and SME solutions.
Key segment figures:
- Residential: revenue $760.2m (+12.4%), gross margin $234.7m
- BE&G: revenue $237.8m (+12.4%), gross margin $106.3m
- Wholesale: revenue $297.3m (+9.4%), gross margin $124.6m
Wholesale
Wholesale revenue grew 9.4% to $297.3m, with broadband connections jumping to 336,000 following the More and Tangerine migration. Mobile services rose on 18,000 net additions, and the Medion mobile enablement platform is set to launch in Q2 FY27.
Capital management — dividend lifted 50% and $115m buy-back launched
The Board declared a final fully franked dividend of 3.6c (FY25 final: 2.4c), taking the total FY26 dividend to 6.0c and representing a payout ratio of 39% of NPAT.
A share buy-back of up to $115 million was announced on 24 August 2026, open over the next 12 months.
The balance sheet remained well positioned, with a net leverage ratio steady at 0.9x and $190m of available headroom under existing facilities. A debt refinancing completed in January 2026 delivered improved tenor and pricing, while the cash conversion ratio rose 16.3 percentage points to 101.2%.
Together, these measures demonstrate capacity to fund acquisitions, invest in growth and grow shareholder returns simultaneously.
FY27 guidance and the road to Look-to-28
For FY27, the company issued guidance for underlying EBITDA of $205m to $215m and capex of $60m to $65m. Management stressed these are company targets and remain subject to risks and uncertainties.
The trading update highlighted:
- More than 120,000 broadband connections added through organic growth and customer migrations early in FY27
- AGL Telco migration on track to complete in Q2 FY27, with over 116,000 broadband services and 30,000 mobile services migrated to date
- Group expected to exceed 1.3 million broadband connections in Q2 FY27
- Launch of international roaming and eSIM supporting mobile growth
The centrepiece of the outlook was the upgraded Look-to-28 ambitions, which management raised off a stronger FY26 base.
| Target metric | Previous ambition | Upgraded ambition |
|---|---|---|
| Group revenue | >$1.6bn | >$2.0bn |
| EBITDA margin | >12.5% | >13.5% |
| NBN market share | >11% | >17%, ~1.5m connections |
| EPS growth | >20% CAGR | >30% CAGR |
The company cautioned that these strategic ambitions do not constitute guidance and carry risks and uncertainties, including from events beyond its control.
The investment case in focus
Management framed the investment case around several pillars. These include:
- Recognition as Australia’s most trusted telco brand for the fifth consecutive year, as measured by Roy Morgan
- Scalable owned infrastructure, including a 2,058km Aussie Fibre network, two Tier 1 voice networks and proprietary platforms
- A diversified, multi-segment and multi-product model spanning Residential, BE&G and Wholesale
- Structural tailwinds from growing demand for connectivity and higher speeds
The forward setup ties these threads together. FY26 delivered organic strength and completed the transactions that repositioned the portfolio, while upgraded targets frame FY27 as the year those benefits are expected to be realised.
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