AVADA Group lifts FY26 revenue 14.6% to $209.8m as NSW returns to profit
AVADA Group Limited (ASX: AVD) has reported group revenue up 14.6% to $209.8m for FY26 (FY25: $183.1m), driven by strong growth across its two largest markets, Queensland and New South Wales.
Adjusted EBITDA edged higher to $13.1m (FY25: $12.8m), reflecting the initial benefits of an ongoing business transformation programme.
The statutory loss after tax of $15.2m included a $15.0m non-cash impairment to the Victorian business. Excluding that accounting charge, the underlying trading result improved for the Group as a whole. Management also pointed to a successful refinancing with the Commonwealth Bank of Australia (CBA) and transformation initiatives as key positives for the year.
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FY26 results at a glance
The headline financials capture a year of top-line expansion alongside a heavy non-cash charge that weighed on the statutory result.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Group revenue | $209.8m | $183.1m | +14.6% |
| Adjusted EBITDA | $13.1m | $12.8m | +2.3% |
| Statutory net loss after tax | ($15.2m) | ($15.6m) | Improved |
| Non-cash intangible impairment | $15.0m | $14.8m | — |
Operating cost increases ran ahead of revenue growth during the year. AVADA attributed this to three main drivers:
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Mobilisation costs to support projects in new customer locations across New South Wales.
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One-off costs for business transformation, leadership and capability initiatives.
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Second-half fuel cost escalation stemming from the Middle East conflict.
Management framed these costs as largely positioning the Group for profitable growth.
Strong performances across key markets
Queensland delivers steady growth
Queensland revenue rose 6.4% to $112.3m (FY25: $105.5m), supported by a strong forward project pipeline.
The region continues to benefit from major infrastructure investment, including auxiliary works in preparation for the Brisbane 2032 Olympic and Paralympic Games and the commencement of major road infrastructure improvement programmes. This pipeline points to durable, multi-year demand for the Group’s services.
New South Wales returns to profit
New South Wales delivered the standout result, with revenue climbing 86.7% to $65.1m (FY25: $34.9m) on the back of contract wins with new customers and in new regional areas.
The region returned to profit for the year, reporting EBITDA of $7.1m compared with a loss of $3.3m in FY25. Notably, this recovery was achieved even while the business absorbed mobilisation costs to support newly awarded regional contracts.
Victoria and New Zealand headwinds
Operating conditions in Victoria remained challenging, driven by a mandate requiring unionised labour on major government infrastructure contracts. The carrying value of the Victorian operations was impaired by $15.0m to account for the ongoing market challenges.
In response, AVADA is re-allocating resources to parts of the Group where project utilisation and returns are greater, while implementing operational, commercial and leadership initiatives to position the business for recovery.
In New Zealand, continuing weakness in the economic outlook reduced government project work and weighed on performance. A new management team was installed during the year to strengthen operations. The Board views the current New Zealand operations and improvement plans as the best economic option for shareholders.
Understanding traffic management and why infrastructure spending matters
AVADA Group operates as an independent traffic management provider for the civil infrastructure and maintenance sector, serving government clients and major contractors across Queensland, New South Wales, Victoria and New Zealand.
According to the company, its adherence to industry best-practice standards for safety, governance and public accountability is a distinct competitive advantage when competing for government and private sector contracts.
Business transformation building financial resilience
The transformation programme sits at the centre of AVADA’s investment case, aimed at improving operational discipline and financial resilience. Management reported that significant progress created a solid operating platform and delivered initial efficiency improvements during the year.
Key milestones included:
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Fleet utilisation improvements delivered in the first half.
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Margin improvement and resource optimisation programmes implemented across the business in the second half.
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Recruitment of a new Executive General Manager of Strategic Execution and Operations, plus a Commercial Manager, both in October 2025.
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Daniel Crowley’s transition to the role of Executive Director and Founder, drawing on his industry knowledge and client relationships.
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Additional dedicated business development resources added in Queensland and Victoria to improve pipeline visibility.
The Group also completed the refinancing and expansion of its banking facilities with CBA in April 2026, providing greater financial flexibility on improved commercial terms.
The CBA refinancing completed in April 2026 replaced a $40 million term loan with $42.6 million in new facilities, extending maturities and increasing covenant headroom to give management greater flexibility as the transformation programme accelerates.
Outlook and the road ahead
Management described the outlook for the traffic management industry as broadly positive, with ongoing infrastructure investment supporting growing demand for the Group’s services.
For the current financial year, AVADA’s focus is to continue improving operational and commercial disciplines, build an operating model resilient to market challenges, and leverage its leading market position to achieve profitable growth. The company noted that the FY26 initiatives have left it a commercially stronger and better positioned business.
Board Outlook
The Board remains confident that the Group has strengthened the foundations to deliver sustainable growth and long-term shareholder value.
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