Atlas Arteria reported a statutory net profit of $73.3 million for H1 2025, impacted by a new tax, while toll revenues rose 8.1%. The company reaffirmed its 2025 distribution guidance of 40 cents per security, supported by strong free cash flow growth.
- Statutory net profit after tax of $73.3 million, down from $109.2 million due to Temporary Supplemental Tax
- Toll revenue increased 8.1%, driven by toll hikes and favorable foreign exchange rates
- Free cash flow per security rose to 19.4 cents, up from 17.8 cents in H1 2024
- 2025 distribution guidance reaffirmed at 40.0 cents per security
- Leadership changes and growth projects underway in France and the US
Financial Performance and Tax Impact
Atlas Arteria Limited (ASX – ALX) has released its half-year results for the six months ending June 30, 2025, revealing a statutory net profit after tax of $73.3 million. This represents a 33% decline compared to the $109.2 million reported in the same period last year, primarily due to the imposition of a Temporary Supplemental Tax (TST) amounting to $57.8 million (€33.5 million). Despite this headwind, the company’s underlying operations showed resilience and growth.
Toll Revenue and Cash Flow Growth
Proportionate toll revenue grew by a robust 8.1% compared to H1 2024, buoyed by toll increases implemented early in 2025 and favorable foreign exchange movements, particularly against the euro and US dollar. This growth was reflected across most of Atlas Arteria’s portfolio, including its major French concessions and US toll roads. Free cash flow per security also improved to 19.4 cents, up from 17.8 cents, underscoring the company’s ability to generate strong cash returns despite the tax impact.
Operational Highlights and Strategic Initiatives
Traffic volumes showed positive trends, with the APRR Group in France reporting a 2.4% increase in vehicle kilometers traveled, supported by low unemployment and stable economic conditions. In the US, the Dulles Greenway experienced an 8.2% rise in traffic, driven by congestion on alternative routes, while Chicago Skyway’s toll revenue increased despite a slight dip in traffic.
Atlas Arteria is actively pursuing growth projects in partnership with Eiffage, including the A412 and A154 motorway projects in France, with environmental approvals and tender processes underway. The company is also progressing federal litigation and a new rate case application for the Dulles Greenway, aiming to unlock further cash flow potential.
Leadership and Sustainability Focus
Leadership appointments have strengthened the group’s operational and cultural capabilities. Luis Tejerina has been appointed CEO of Chicago Skyway, bringing extensive asset management expertise, while the CEO search for Dulles Greenway is advancing with an expected appointment in the second half of 2025. Geraldine Leslie joins as Group Executive, People and Culture, spearheading a renewed focus on safety culture across the business.
On sustainability, Atlas Arteria submitted its 2024 Modern Slavery Statement and Sustainability Report to the UN Global Compact, reaffirming its commitment to human rights and responsible business practices. Safety initiatives include new sensor-activated LED signage at the Warnow Tunnel to enhance driver safety.
Distribution Guidance and Market Outlook
Importantly, Atlas Arteria has reaffirmed its 2025 distribution guidance of 40.0 cents per security, supported by the company’s growing free cash flow and a foreign exchange hedging program. CEO Hugh Wehby highlighted the company’s disciplined capital management and operational focus as key to delivering long-term value for securityholders.
Looking ahead, the company faces ongoing challenges including the resolution of tax disputes in France and the outcome of US litigation and regulatory processes. However, its diversified portfolio and strategic partnerships position it well to navigate these complexities.
Bottom Line?
Atlas Arteria’s reaffirmed distribution and operational momentum set the stage for a pivotal second half amid tax and regulatory challenges.
Questions in the middle?
- How will the Temporary Supplemental Tax impact Atlas Arteria’s profitability and distributions beyond 2025?
- What are the prospects and timelines for resolution of the French tax litigation and US federal litigation?
- How will leadership changes influence operational efficiency and growth execution across key assets?