Transurban Group posted robust half-year results for December 2025, with revenue climbing 8.1% and profit rebounding to $343 million. The company also declared a 34-cent interim distribution, underpinned by strong cash flow and key project milestones.
- Revenue increased 8.1% to $1.983 billion
- Profit after tax from ordinary activities rose to $343 million
- Proportional EBITDA surged 21.6% to $1.592 billion
- Interim distribution declared at 34.0 cents per security
- West Gate Tunnel opened; progress on Sydney’s M7-M12 and US 495 Express Lanes
Solid Financial Performance Amid Infrastructure Expansion
Transurban Group has delivered a strong set of results for the half-year ended 31 December 2025, reflecting both operational momentum and strategic infrastructure investments. The company reported an 8.1% increase in statutory revenue to $1.983 billion, alongside a return to profitability with a $343 million profit after tax from ordinary activities, a significant turnaround from a prior loss.
Underlying the headline figures, proportional toll revenue rose 6.4% to $1.991 billion, supported by a 2.5% increase in average daily traffic across its assets. Proportional EBITDA, a key measure of operational earnings, jumped 21.6% to $1.592 billion, signalling improved efficiency and higher traffic volumes. Free Cash, the Group’s primary cash performance metric, also grew modestly by 2.4% to $1.085 billion, providing a solid foundation for distributions.
Distribution and Capital Management
Reflecting the robust cash flow, Transurban declared an interim distribution of 34.0 cents per security, up from 32.0 cents in the prior corresponding period. The distribution is fully supported by Free Cash generated during the half-year, maintaining the Group’s commitment to delivering consistent returns to security holders. The Distribution Reinvestment Plan saw a participation rate of 7.08%, with no discount applied to the issue price of stapled securities.
Operational Highlights and Project Progress
Operationally, the period was marked by significant milestones. The West Gate Tunnel in Melbourne officially opened in December 2025, enhancing traffic flow and connectivity in the city. In Sydney, the M7-M12 integration project is nearing completion, with 85% of works finished and key sections like the Elizabeth Drive Connection expected to open in early 2026. This project will improve access to the new Western Sydney International Airport.
In North America, the 495 Express Lanes were extended by 4 kilometres towards the Maryland border, opening ahead of the peak holiday travel season. This expansion includes environmental enhancements such as stormwater management and new shared-use paths, reflecting Transurban’s commitment to sustainable infrastructure development.
Financial Position and Risk Management
Transurban maintains a strong liquidity position with $1.229 billion in cash and cash equivalents and $2.732 billion in undrawn credit facilities, ensuring flexibility to manage ongoing operations and capital projects. The Group’s gearing ratio remains stable at 37.4%, and no breaches of financial covenants were reported. The company continues to manage financial risks prudently through hedging strategies and diversified funding sources.
While legal proceedings related to toll administration fees in Queensland remain unresolved, these have not materially impacted revenue recognition during the period. The Group continues to monitor these matters closely.
Leadership and Governance
The Board welcomed Michael Wright as a new non-executive director in November 2025, following the departure of Peter Scott in October. Leadership continuity and governance remain priorities as Transurban navigates growth and operational complexity.
Overall, Transurban’s half-year results underscore its position as a leading toll-road operator with a diversified portfolio spanning Australia and North America, delivering steady growth and shareholder value through strategic infrastructure investments and disciplined financial management.
Bottom Line?
With key projects advancing and cash flow strengthening, Transurban is well-positioned to sustain growth and shareholder returns in the coming periods.
Questions in the middle?
- How will ongoing toll reform in NSW impact Transurban’s revenue and contract terms?
- What are the potential financial implications if the Queensland toll administration legal proceedings escalate?
- How will the integration of new assets like West Gate Tunnel influence traffic patterns and long-term profitability?