Experience Co reports 2% revenue lift as tourism recovery drives FY26 result
In its FY26 results presentation, Experience Co Limited reported sales revenue of $129.6m from continuing operations, a 2% increase on the prior corresponding period (PCP).
The tourism operator delivered this growth across a challenging operating environment marked by weather disruption, industrial action and higher fuel costs linked to Middle East conflict. Underlying EBITDA came in at $17.6m (down 8% PCP), with Underlying net profit after tax from continuing operations of $2.0m (down 30% PCP).
Management also flagged two forward catalysts: a proposed ~$110m Inflite Aviation transaction and a solid start to FY27 trading.
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FY26 financial highlights at a glance
The group scorecard shows revenue growth achieved despite margin pressure across the year. Continuing operations exclude Wild Bush Luxury, divested to Intrepid Travel on 1 May 2026, reflecting portfolio simplification.
The Wild Bush Luxury divestment to Intrepid Travel completed on 1 May 2026 for $5.1 million, with approximately $3.4 million in net proceeds directed toward reducing corporate debt and improving balance sheet flexibility ahead of the Inflite transaction.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue (continuing) | $129.6m | $127.3m | +2% |
| Underlying EBITDA | $17.6m | $19.0m | (8%) |
| Underlying EBIT | $6.6m | $7.0m | (5%) |
| Underlying NPAT | $2.0m | $2.9m | (30%) |
| NTA per share | 10.0c | 9.7c | +3% |
The balance sheet position remained broadly stable year-on-year:
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Cash and cash equivalents of $5.4m
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Net debt of ($10.7m), broadly flat on PCP
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Net debt to LTM Underlying EBITDA of 0.76x
How the divisions performed across FY26
The results reflected a common theme across both divisions: pricing and higher customer spend offsetting broadly flat volumes.
Adventure Experiences — the growth engine
The Adventure Experiences division reported segment revenue of $65.8m (up 6% PCP), with Underlying EBITDA of $15.4m (down 4%). The segment remained the major contributor to the group result.
Reef Unlimited lifted revenue 7% and volume 4%, reaching 261k PAX, the highest in the FY23 to FY26 period shown. This was supported by the full-year benefit of vessel Aquarius II. The business was also awarded a $4m Tourism Icons Grant towards its new Reef Magic IV pontoon vessel.
Treetops Adventure grew revenue 2% on broadly flat volumes of 396k PAX, driven by pricing and increased customer spend. New Canberra Networld and Zipline courses opened during the year, while the West Beach Adventure acquisition established the group’s first South Australian presence.
The West Beach Adventure acquisition in South Australia cost $1.25 million and added a site generating approximately $450,000 in pro-forma EBITDA, marking Treetops Adventure’s first footprint in the state and contributing to the segment’s pricing-led revenue lift.
Second-half performance was affected by weather events and a crocodile impacting Port Douglas Low Isles operations.
Skydiving — New Zealand strength offsets Australian softness
The Skydiving division reported segment revenue of $63.8m (down 2%) and Underlying EBITDA of $9.7m (down 3%), though Underlying EBIT rose 9% to $5.4m.
Skydive New Zealand reported revenue growth of 7% and volume growth of 9% in AUD terms, with bookings growth in every month. A roughly 11% depreciation of the NZD against the AUD dampened AUD conversion.
Skydive Australia saw revenue and volume each decline 7%, impacted by Protected Industrial Action during peak trading windows. Victorian operations were consolidated into the Great Ocean Road drop zone, with the Melbourne site placed into care and maintenance and the Yarra Valley drop zone permanently closed.
Understanding the numbers — cash conversion and the balance sheet
Cash conversion measures how much of reported EBITDA turns into actual operating cash. For asset-heavy tourism operators, investors watch this metric closely because it indicates how efficiently earnings translate into deployable funds.
FY26 cash conversion was 84%, down from 108% in FY25, reflecting working capital timing and significant items rather than a structural deterioration. Free cash flow came in at $2.3m (FY25: $7.4m), with operating cash flow of $10.0m.
A sound balance sheet matters ahead of a potential large transaction. The group held $15.8m of undrawn CBA facilities, a net debt to LTM Underlying EBITDA ratio of 0.76x, plus $57.7m in carried-forward Australian tax losses and $8.5m in franking credits.
Capital deployment during FY26 comprised:
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Growth capex, including West Beach Adventure and Treetops Canberra
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Debt and lease repayments
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Dividend paid of $1.9m
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On-market share buy-back of $0.2m
The $110m Inflite Aviation transaction — reshaping the portfolio
On 14 July 2026, Experience Co signed a non-binding term sheet with Inflite Aviation to combine its Skydive and Aviation business unit with Inflite to create an Australia/NZ based aviation tourism business (“MergeCo”).
On completion of the proposed transaction, the combined business is estimated to have an enterprise value of approximately $110m on a cash-free, debt-free basis. EXP would receive consideration of approximately $65m, comprising:
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$41m in upfront cash consideration at completion
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A $5m vendor note issued by MergeCo, with interest capitalised quarterly and repaid after five years
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A 32.5% ordinary equity interest in MergeCo, with an implied valuation of approximately $19m
Management noted that due diligence advisors have been engaged, site inspections across Australia and New Zealand are complete, and the MergeCo financing plan is progressing. No action is required by shareholders.
The transaction remains non-binding and subject to due diligence.
FY27 priorities and a solid start to the new year
The group reported a solid start to FY27. July 2026 trading (unaudited) delivered revenue from continuing operations of $11.7m (PCP: $11.4m) and Underlying EBITDA of $2.3m (PCP: $2.1m), both ahead of PCP. Revenue growth was reported across all business units except Skydive New Zealand, which was currency-impacted.
Management highlighted the group’s pronounced seasonality, with approximately 80% of group EBITDA generated across July, December, January and April.
FY27 strategic priorities outlined in the presentation include:
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Earnings optimisation via the Tanda workforce platform and procurement savings
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Building trading momentum through direct-to-consumer investment
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Organic growth, including Reef Magic IV delivery and the Treetops network rollout
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Portfolio quality, progressing the Inflite transaction and evaluating accretive M&A
On outlook, management noted the FY27 environment remains supported by solid inbound tourism markets in Australia and New Zealand, while also flagging ongoing EBA negotiations with the Australian Workers Union.
Board and Management Outlook
The Board and Management remain positive on the Group’s longer-term earnings outlook. However, changes to the Group’s business structure, the more gradual and uneven recovery in international tourism, together with ongoing macroeconomic uncertainty, are expected to result in the Group’s earnings recovery taking longer than previously anticipated.
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