Transurban lifts FY26 distribution to 69cps and guides to 4.3% growth in FY27
Transurban delivered its FY26 results with a distribution of 69.0 cents per stapled security (up 6.2%, in line with guidance), and guided FY27 to 72cps, representing approximately 4.3% growth.
Proportional toll revenue rose 6.7% to $3,982M, while statutory profit after tax reached $432 million, up from $178 million in FY25.
Chief Executive Officer Michelle Jablko framed the year as a “milestone year” for the toll road operator, marked by the completion of three major construction projects across Sydney, Melbourne and North America.
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FY26 results: revenue, earnings and distribution in focus
For the year ended 30 June 2026, Transurban recorded broad-based growth across its portfolio. Average Daily Traffic (ADT) increased 2.2% to 2.6 million daily trips, supported by growth in all regions, while commercial traffic grew 6.6%.
Proportional Operating EBITDA rose 7.5% to $3,063M, with the EBITDA margin improving to 75.7% from 74.9% in FY25.
Cost discipline was a feature of the result. Proportional operating costs increased 3.3% to $984M, but on a like-for-like basis grew just 0.7% when excluding costs associated with new assets.
The FY26 distribution was 98.1% covered by Free Cash (excluding Capital Releases and Cash reserves) of 67.7cps, underpinning the sustainability of the payout.
| Metric | FY26 | FY25 | Change % | Note |
|---|---|---|---|---|
| Toll revenue | $3,982M | $3,732M | 6.7% | Proportional |
| Operating EBITDA | $3,063M | $2,848M | 7.5% | Proportional |
| EBITDA margin | 75.7% | 74.9% | +80bps | Margin improvement |
| Free Cash per security | 67.7cps | 64.7cps | 4.7% | Excl. Capital Releases |
| Distribution per security | 69.0cps | 65.0cps | 6.2% | In line with guidance |
A milestone year: three major projects completed
Behind the financial result sat a significant operational story, with three major construction projects opening to traffic during the year.
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495 Northern Extension (Project NEXT) — opened 23 November 2025, ahead of schedule, extending the 495 Express Lanes by 4 kilometres north and contributing 10%+ growth in that asset’s FY26 ADT.
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West Gate Tunnel Project — opened 14 December 2025, described as the largest addition to Melbourne’s motorway network in decades, reducing trucks on inner west local roads by up to 90%.
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M7-M12 Integration Project — opened 14 June 2026, completing a 26km widening of the M7 and enhancing daily capacity by 30,000 vehicles, including access to the new Western Sydney International Airport.
Michelle Jablko, Chief Executive Officer
“FY26 was a milestone year for Transurban. We completed three major construction projects that are delivering significant travel time savings and customer benefits across Sydney, Melbourne and North America. Against a backdrop of global economic and geopolitical uncertainty, performance remained resilient.”
Market-by-market performance
Growth was recorded across all four markets, with North America delivering the standout performance in percentage terms.
| Market | ADT growth | Toll revenue (FY26) | Revenue growth | EBITDA growth |
|---|---|---|---|---|
| Sydney | +1.2% | $1,928M | +4.4% | +4.7% |
| Melbourne | +3.1% | $1,076M | +9.0% | +6.8% (Operating EBITDA) |
| Brisbane | +2.5% | $633M | +6.2% | +8.8% (Operating EBITDA) |
| North America | +3.5% | $345M | +14.3% | +19.6% |
North American strength was driven by the express lane assets. Average workday toll revenue on the 495 Express Lanes increased 42.4%, while the 95 Express Lanes recorded a 13.9% rise in average workday toll revenue.
Balance sheet and NSW toll reform
Transurban ended FY26 with corporate liquidity of $3.7 billion at 30 June 2026, comprising $0.4 billion of corporate cash and $3.3 billion of undrawn corporate borrowing facilities.
The debt book was 87.8% hedged, with the weighted average cost of AUD debt increasing marginally to 4.8%. Management noted that funding cost increases had been limited to just 40 basis points since June 2020, despite a 400 basis point rise in the Australian 10-year swap rate.
On toll reform, the Direct Deal proposed with the NSW Government has been “finalised”, with implementation remaining subject to definitive agreements and various approvals. The reforms are expected to preserve the value of existing concession contracts and not negatively impact Transurban’s near-term distributions.
The NSW toll reform Direct Deal was framed by management as value neutral, with the total net five-year funds flow across all affected assets netting to zero and no expected negative impact on near-term distributions, while an embedded M7-M2 Widening project provides a longer-term growth lever into a corridor expecting 70%+ population growth.
FY27 guidance and the road ahead
Transurban guided to an FY27 distribution of 72cps, representing approximately 4.3% growth on FY26. Free Cash coverage for FY27 is expected to be slightly below the 95-105% targeted range, subject to traffic performance and macroeconomic factors.
Management characterised FY27 as a transitional year as the company adjusts for M5 West ownership changes.
The growth pipeline includes the announced expansion of the 95 Express Lanes Bi-Directional Project, which would increase total lane miles by around 140% along one of the most congested corridors in the United States. On the customer side, the company has surpassed 2.0 million Linkt Rewards members, up more than 9 times since FY23, alongside the rollout of the new Linkt Journey Planner.
The A25 divestment, completed ahead of the financial year close, recycled CAD 280 million from Transurban’s remaining Montreal concession stake back into the Greater Washington Area express lane portfolio, reinforcing the capital allocation logic behind the 95 Express Lanes Bi-Directional Project announced in FY27 guidance.
Michelle Jablko, Chief Executive Officer
“FY27 is a transitional year as we adjust for the M5 West ownership changes. We have been addressing that for some time, driving better performance in the business and seeing more opportunity ahead. The work we are doing and our strong business fundamentals give us confidence in the outlook.”
For investors, the final distribution of 35cps for the six months ended 30 June 2026 is payable on 18 August 2026. The Board has determined that the Distribution Reinvestment Plan will not operate for the FY26 final distribution.
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