Experience Co Limited reported a 5% increase in sales revenue to $67.2 million for 1H26, with underlying EBITDA steady at $10.5 million despite operational challenges. The company is streamlining its portfolio by selling Wild Bush Luxury and focusing on scalable adventure experiences.
- 5% sales revenue growth to $67.2 million in 1H26
- Underlying EBITDA stable at $10.5 million despite external pressures
- Sale of Wild Bush Luxury announced, completion targeted in 2H26
- Strong growth in Skydive New Zealand offsets weaker Australian operations
- Ongoing cost reduction and capital management initiatives
Solid Revenue Growth Amid Operational Headwinds
Experience Co Limited, a leading player in the adventure tourism sector, has released its half-year results for the six months ending December 2025, reporting a 5% increase in sales revenue to $67.2 million. Underlying EBITDA remained largely flat at $10.5 million compared to the prior corresponding period, reflecting resilience in a challenging operating environment marked by weather disruptions and industrial action.
The company’s strategic decision to divest its Wild Bush Luxury business, announced in December 2025 and expected to complete in the second half of the financial year, signals a sharper focus on scalable adventure experiences such as skydiving, reef tours, and treetop adventures. This move aims to simplify the portfolio and concentrate resources on core growth areas.
Segment Performance: Contrasts Between Australia and New Zealand
The skydiving segment demonstrated a tale of two markets. Skydive New Zealand experienced robust volume growth of 11%, driven by strong bookings and higher ancillary sales like photo and video packages. This growth helped offset a 7% volume decline in Skydive Australia, where the business faced multiple headwinds including protected industrial action in December, adverse weather, and ongoing macroeconomic pressures affecting domestic and inbound tourists.
Reef Unlimited, operating primarily in North Queensland, delivered solid results with an 8% revenue increase supported by volume growth and targeted price rises, despite some weather-related operational constraints. Meanwhile, Treetops Adventure posted mixed results across its sites, with a slight volume decline but improved average revenue per customer through enhanced offerings and rate increases.
Financial Position and Cost Management
Experience Co maintains a sound balance sheet with net debt of $13.3 million and undrawn debt facilities of $14 million, providing flexibility to support ongoing operations and growth initiatives. The company has implemented a group-wide cost reduction program, achieving over $2.5 million in savings over the past two years and targeting an additional $2 million annualised savings in FY26, with half already realised in the first half.
Cash flow conversion has been impacted by working capital timing and increased maintenance capital expenditure, particularly on aircraft and vessel fleets. Despite a net cash decrease of $2.5 million in 1H26, management remains focused on improving free cash flow generation and operational efficiency.
Outlook: Cautious Optimism Amid Market Uncertainties
Trading in January 2026 was challenging, with revenue and earnings down on the prior year due to weather events and industrial action, particularly affecting Reef Unlimited and Skydive Australia. However, February saw improved forward bookings, partly boosted by the Lunar New Year holiday period. The company is conducting a comprehensive review of its Australian skydiving operations to address underperformance and adapt to evolving market dynamics.
While the return of international tourists remains inconsistent and macroeconomic pressures persist, Experience Co’s management maintains a positive long-term earnings outlook. Strategic priorities include optimising earnings, sustaining trading momentum, enhancing portfolio quality, and pursuing organic growth opportunities. The company will continue to provide quarterly trading updates to keep investors informed.
Bottom Line?
Experience Co’s steady growth and strategic refocus position it well, but operational challenges and market uncertainties warrant close investor attention.
Questions in the middle?
- How will the sale of Wild Bush Luxury impact Experience Co’s long-term growth trajectory?
- What specific measures will the Skydive Australia review recommend to reverse underperformance?
- How resilient is Experience Co to further industrial action or adverse weather events in peak seasons?