Webjet Group has ended acquisition discussions with Helloworld and BGH Capital, reaffirming its focus on executing its FY30 growth strategy while confirming FY26 EBITDA guidance and a $25 million share buy-back.
- Cessation of acquisition talks with Helloworld and BGH Capital
- FY26 underlying EBITDA expected between $28 million and $29 million
- Business travel segment reduces EBITDA by $600-900k in 2H26
- Launch of $25 million on-market share buy-back program
- Focus shifts back to executing Webjet’s FY30 strategic growth plan
End of Acquisition Talks
Webjet Group Limited (ASX – WJL) has officially ceased discussions with Helloworld Travel Limited and BGH Capital regarding potential acquisition proposals. After more than three months of constructive engagement and due diligence, neither party presented a binding offer aligned with their initial indicative proposals. The Webjet Board concluded that no proposal with sufficient certainty and shareholder value was forthcoming within an acceptable timeframe, prompting a strategic pivot back to internal growth initiatives.
FY26 Trading Update
Despite a challenging trading environment in the second half of FY26, Webjet reported encouraging signs following its online travel agency brand relaunch in October. The company now expects its underlying EBITDA to land between $28 million and $29 million, excluding the business travel division. This segment, performing in line with expectations, is anticipated to reduce EBITDA by approximately $600,000 to $900,000 in the latter half of the financial year.
Share Buy-Back Resumes
Webjet has also confirmed the commencement of a $25 million on-market share buy-back program, which had been paused during the acquisition talks. This move signals confidence from the Board in the company’s valuation and future prospects, aiming to return value to shareholders amid ongoing market uncertainties.
Strategic Focus on FY30 Plan
Chair Don Clarke emphasised that management will now fully concentrate on executing Webjet’s FY30 strategic plan. This includes driving growth in core businesses, expanding addressable markets, enhancing brand and customer engagement, and investing in technology to improve the customer experience. The Board remains open to future proposals that offer compelling shareholder value and execution certainty but is prioritising organic growth and operational excellence for now.
Bottom Line?
Webjet’s renewed focus on growth and shareholder returns sets the stage for a pivotal year ahead.
Questions in the middle?
- What specific challenges are impacting Webjet’s trading environment in 2H26?
- How will the business travel segment evolve beyond FY26 and affect overall profitability?
- Could renewed acquisition interest emerge if market conditions or valuations shift?