Experience Co Posts $67.2M Revenue Despite Weather and Industrial Headwinds
Experience Co delivers steady half-year amid external headwinds
Experience Co has reported 1H26 financial results showing resilient performance despite significant operational challenges. The adventure tourism operator delivered revenue of $67.2 million (+5% on prior corresponding period) and underlying EBITDA of $10.5 million (+1% on prior corresponding period) for the six months ended 31 December 2025.
Net profit after tax reached $2.6 million, representing a 58% improvement from $1.6 million in the prior corresponding period. The results exclude Wild Bush Luxury following the December 2025 sale announcement, with completion targeted for the second half of FY26. Net tangible assets per share stood at 9.5 cents.
The financial outcome demonstrates operational resilience given multiple external pressures including adverse weather conditions, cost-of-living pressures affecting consumer spending, and industrial action by skydive instructors in Australia. Management’s cost discipline contributed to the improved profitability trajectory despite revenue growth remaining modest.
Segment performance breakdown
The company’s two-segment structure delivered mixed results. The Skydiving segment generated underlying EBITDA of $4.0 million (+10% on prior corresponding period), driven by strength in New Zealand operations. Adventure Experiences produced underlying EBITDA of $10.4 million (+1% on prior corresponding period), with Reef Unlimited showing 11% revenue growth.
Skydive Australia faced headwinds with volumes declining 7%, impacted by inconsistent international visitor return, cost-of-living pressures, and protected industrial action during the critical Christmas trading period. Conversely, Skydive New Zealand volumes surged 11%, demonstrating strong booking demand despite weather disruptions.
| Segment | Revenue | Underlying EBITDA | Change vs PCP |
|---|---|---|---|
| Skydiving | $30.6m | $4.0m | +10% |
| Adventure Experiences | $36.6m | $10.4m | +1% |
Adventure Experiences remains the earnings anchor for the group, contributing the majority of underlying EBITDA. Reef Unlimited’s volume growth of 7% and average revenue per customer improvement of 4% offset softer performance in parts of the Treetops Adventure network, where volumes declined 4% due to mixed site performance and the loss of the Newcastle location following an unsuccessful lease renewal.
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What is underlying EBITDA and why does it matter?
Underlying EBITDA strips out one-off items to show core operating performance, providing investors with a clearer view of the business’s sustainable earnings capacity. Experience Co uses this measure to track genuine business progress by excluding share-based payments, transaction costs, and impacts from asset disposals.
For investors assessing these 1H26 financial results, underlying EBITDA helps separate the company’s ongoing operational performance from non-recurring events. This distinction becomes particularly important when evaluating portfolio changes such as the Wild Bush Luxury sale, where statutory figures may differ materially from underlying results. The measure allows for meaningful period-to-period comparisons and helps identify trends in the company’s earnings trajectory.
Tourism recovery context supports medium-term outlook
Australia’s inbound tourism recovery continues to progress, though the pace remains uneven across regions and segments. Aviation capacity to Australia has returned to 100% of 2019 levels, but holiday arrivals stand at 89% of 2019 volumes, indicating ongoing gap between capacity and demand conversion.
The recovery trajectory varies significantly by geography. New Zealand’s Queenstown market now exceeds 2019 performance levels, supporting the strong results delivered by Skydive New Zealand. Australian domestic overnight trips are projected to reach approximately 123 million by 2030, up from current levels, while international visitors to Australia are forecast to reach 10.9 million over the same period.
Experience Co’s portfolio positioning aligns with these tourism recovery tailwinds:
- Aviation capacity to Australia: 100% of 2019 levels
- Australian holiday arrivals: 89% of 2019 levels
- New Zealand Queenstown tourism: now exceeds 2019 levels
- Projected Australian domestic overnight trips by 2030: ~123 million
The macro environment provides a supportive backdrop for medium-term earnings growth, though management acknowledges the recovery timeline has extended beyond initial expectations. Short-term volatility from weather events and economic uncertainty continues to affect trading patterns, but the fundamental drivers for adventure tourism demand remain intact.
Cost reduction programme advances
Management has implemented approximately 50% of a targeted $2 million in annualised cost savings for FY26, with earnings benefits expected to ramp through the second half. This initiative builds on more than $2.5 million in savings achieved over the previous two financial years, demonstrating sustained focus on operational efficiency.
The cost programme includes the implementation of a new HR/Payroll system, scheduled for go-live in February 2026. This investment in operational infrastructure aims to improve administrative efficiency and provide better workforce management capabilities across the group’s geographically dispersed operations.
The cost-out focus addresses margin pressures from general wages inflation, weather-related operational disruptions, and increased tactical pricing used to stimulate volumes during softer demand periods. Management’s ability to extract cost savings while maintaining service delivery standards reflects operational discipline regardless of the revenue environment.
Balance sheet and capital management
The company maintains a conservative financial position with net debt of $13.3 million at 31 December 2025 (June 2025: $10.9 million). Net debt to last twelve months underlying EBITDA stood at approximately 0.9 times, providing comfortable headroom within banking covenants.
Financial flexibility remains strong:
- Cash: $8.5m (June 2025: $11.1m)
- Net debt: $13.3m (June 2025: $10.9m)
- Undrawn facilities: $14.0m
- Net debt/EBITDA: ~0.9x
The Commonwealth Bank debt facility provides $14.0 million in undrawn capacity across Market Rate Loan and Asset Finance facilities. The Market Rate Loan facility maturity has been extended to December 2027, providing medium-term funding certainty. A New Zealand government loan of approximately $1.8 million (NZ$2 million), provided during COVID-19, matures in April 2026.
Capital management initiatives demonstrate confidence in the business outlook. The company reinstated dividend payments and continues an on-market share buyback programme. Net proceeds from the Wild Bush Luxury sale will be applied to reduce CBA debt outstanding, further strengthening the balance sheet and creating capacity for growth investment.
Strategic review and outlook
A comprehensive review of the Skydive Australia business unit is underway, with an update expected ahead of FY26 results. The review examines all options for improving returns from this division, which has underperformed expectations due to changing market dynamics including inconsistent international visitor return, cost-of-living pressures, and industrial relations challenges.
The Wild Bush Luxury sale completion, targeted for the second half of FY26, will simplify the portfolio composition to focus on scalable adventure experiences. January trading proved challenging, with revenue and underlying EBITDA declining versus the prior corresponding period due to Tropical Cyclone Koji impacts and crocodile-related operational restrictions affecting Port Douglas Low Isles operations. February bookings showed improvement, benefiting from Lunar New Year travel, though weather disruptions in New Zealand and further industrial action in Australia tempered results.
Management Outlook
“The Board and Management’s view on the longer-term earnings outlook of the Group remains positive, however, given the more gradual and inconsistent return of international tourists and the ongoing macro-economic conditions in Australia, the Group believes that the earnings recovery will take longer than originally expected.”
The company will continue providing quarterly trading updates as it progresses through the strategic initiatives and navigates the uneven tourism recovery environment.
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Key dates and next steps
Several milestone events will shape the company’s trajectory over the coming months:
- Wild Bush Luxury sale completion: targeted 2H26
- NZ government loan maturity: April 2026 (~A$1.8m)
- Skydive Australia review update: ahead of FY26 results
- Quarterly trading updates: ongoing
The strategic priorities outlined in FY25 remain in focus: earnings optimisation, sustaining trading momentum, portfolio quality improvement, and pursuing organic growth opportunities. The Treetops Adventure growth pipeline continues to advance with new site identification and existing site enhancements, supported by Commonwealth Bank funding commitment for appropriate opportunities.
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