Kelsian Reports $2.21B Revenue, 7% EBITDA Rise, and 9.5c Dividend

Financial Performance and Dividend

Kelsian Group Limited delivered a robust financial performance for the year ended 30 June 2025, with revenue climbing 10% to $2.21 billion. This growth was supported by all three divisions; Marine and Tourism, Australian Bus, and International Bus; reflecting operational excellence and disciplined cost management. Underlying EBITDA rose 7% to $285 million, in line with prior guidance, despite ongoing inflationary pressures.

However, statutory net profit after tax declined 6% to $54.5 million, primarily due to increased depreciation and interest expenses linked to the company’s peak capital investment cycle. The Board declared a fully franked final dividend of 9.5 cents per share, maintaining the full-year dividend at 17.5 cents per share, consistent with the company’s policy of returning 40-60% of underlying net profit after tax and before amortisation to shareholders.

Operational Highlights and Contract Renewals

Kelsian’s operational footprint spans Australia, the UK, Singapore, and the USA, with over 12,800 employees and a fleet comprising more than 5,800 buses and 124 vessels. Key operational achievements included the successful commencement of the Bankstown Rail Replacement service in New South Wales, strategic property acquisitions such as the Hoxton Park bus depot in Sydney, and the sale and leaseback of three bus depots in Western Australia to optimize asset allocation.

Contract renewals and new wins were secured across geographies, including a significant 10-year contract extension in Western Australia’s Bunbury and Busselton regions, expansion of the Colorado Bustang motorcoach network in the USA, and a 10-year renewal of the Jersey bus service contract. In Singapore, Kelsian secured two-year extensions and new routes, further strengthening its position in the public transport sector.

Sustainability and Fleet Modernization

The company continues to lead in sustainable transport solutions, introducing low and zero-emission vehicles across its fleet. Notably, the delivery of the MV Goodna vessel with solar panels and IMO Tier III engines underscores Kelsian’s commitment to reducing carbon emissions. The ongoing construction of new vessels for Kangaroo Island will double vehicle capacity and enhance service reliability, aligning with long-term environmental and operational goals.

Strategic Portfolio Review and Executive Changes

Kelsian is actively reviewing its Tourism Portfolio, which includes resorts, tours, and ferry services, with a view to potential divestment. This strategic move aims to streamline operations and focus on core transport services, reducing capital intensity and enhancing earnings predictability.

Executive leadership saw transitions with Graeme Legh appointed Group CEO in April 2025, succeeding Clinton Feuerherdt who moved to a strategic advisory role. Board changes included the retirement of Chair Jeffrey Ellison and the resignation of Director Lance Hockridge, with Fiona Hele appointed as Chair and Jacqueline McArthur taking on the role of Chair of the People, Culture and Remuneration Committee.

Remuneration and Governance

Following shareholder feedback, Kelsian revised its remuneration framework to better align executive pay with long-term shareholder value. Changes include increased weighting of long-term incentives, introduction of a minimum shareholding requirement for executives, and enhanced transparency around short-term incentive targets and outcomes. The FY25 remuneration report reflects these adjustments, with a focus on performance alignment and governance.

The company’s financial statements were audited by Ernst & Young, who issued an unmodified opinion, highlighting the integrity of Kelsian’s financial reporting and controls.