Superloop Posts 33% EBITDA Growth, Eyes $1 Billion Revenue by FY29

Financial Milestones Mark Completion of Double Down Strategy

Superloop Limited (ASX:SLC) has delivered a standout FY26, reporting a 21.6% jump in revenue to $664.3 million and a 33% increase in underlying EBITDA to $122.7 million, beating the top end of its upgraded guidance. Net profit after tax surged to $17.5 million, a leap from $1.2 million the previous year, underscoring the company’s transition from a loss-making entity to a sustainably profitable and cash-generative telco.

The company’s CEO Paul Tyler highlighted that FY26 marked the successful completion of its three-year Double Down strategy, which aimed to build a larger, more profitable business with strong cash flow. “We delivered on every commitment we made,” Tyler said, pointing to the company’s strong operating leverage and margin expansion as key achievements.

All Segments Drive Growth Amid Expanding Customer Base

Superloop’s growth was broad-based across its Consumer, Business, and Wholesale segments. The Consumer segment saw revenue rise 27.4% to $463.2 million, fueled by the addition of 116,000 new customers, pushing its total consumer base to 501,000. Business segment revenue grew 8.2% to $113.4 million, with customer numbers increasing by 10,000 to 117,000. Wholesale revenue climbed 19.2% to $97.3 million, supported by a 33% increase in customers to 317,000.

The company now serves 935,000 customers in total, adding 205,000 net new customers in FY26, a record for Superloop. This expansion contributed to a 1.9 percentage point increase in group nbn market share to 8.5%, reflecting Superloop’s growing footprint in Australia’s broadband market.

Strategic Acquisitions Fuel Smart Communities Growth

Superloop bolstered its Smart Communities infrastructure through acquisitions of ILT Holdings and Lynham Networks, which together added significant fibre-to-the-premises (FTTP) capacity. Lynham alone contributed approximately 56,000 contracted lots, increasing the Smart Communities contracted footprint to around 190,000 lots, nearly doubling year-on-year.

The acquisitions underpin Superloop’s position as a leading national fibre challenger, with Smart Communities delivering high-margin, annuity-style revenue streams. The company expects Lynham to contribute $11 million EBITDA in FY27 pre-synergies, with $2 million in run-rate synergies targeted by year-end.

Robust Cash Flow and Capital Management Support Growth Ambitions

Operating cash flow rose 40% to $123.5 million with a 101% conversion of underlying EBITDA to cash, while free cash flow increased 50% to $84.4 million. Superloop ended FY26 with $101.7 million in cash and net debt of approximately $128 million, maintaining a manageable net leverage ratio of 1.3x EBITDA.

Capital expenditure totalled $37.9 million (excluding IRU), directed towards digital transformation, network upgrades, and Smart Communities FTTP builds. Investments included $9.5 million in AI and digital upgrades, $15.8 million in network capacity expansion, and $7.6 million in Smart Communities construction.

Executive Remuneration Reflects Strong Performance and Market Alignment

In recognition of Superloop’s robust FY26 performance, executive remuneration was adjusted upward following an independent benchmarking review. CEO Paul Tyler’s fixed remuneration rose 6.5% to $905,250, with increased short-term incentive (STI) opportunities. The board introduced a 20% STI deferral into equity and a minimum shareholding requirement to better align executive interests with shareholders.

The FY24 long-term incentive (LTI) plan fully vested, rewarding executives for sustained earnings per share (EPS) growth and relative total shareholder return (rTSR) performance. However, the one-off Double Down Growth Incentive (DDGI) did not vest in FY26 as the revenue hurdle was not met within the same testing period as the underlying EBITDA target.

SuperCharge29 Strategy Targets Industry-Leading Growth by FY29

Building on the Double Down success, Superloop has launched its SuperCharge29 strategy, aiming to exceed $1 billion in revenue and deliver $200 million in underlying EBITDA by FY29. The plan also targets a reported EPS compound annual growth rate (CAGR) of more than 30%, driven by scaling Smart Communities, expanding consumer broadband leadership, and leveraging AI-enabled operating leverage.

To support these ambitions, Superloop will increase executive STI deferral to 30% and replace the FY27 LTI grant with a SuperCharge Growth Incentive (SGI), a three-year performance rights award focused on rTSR, revenue, EBITDA, and EPS metrics. The SGI is designed to motivate executives to deliver top-quartile market performance and sustained shareholder value.

Inaugural Climate Report Highlights Governance and Risk Management

Superloop published its first climate-related sustainability report in line with AASB S2 requirements, outlining governance structures, risk management frameworks, and climate resilience assessments. The report identifies acute physical risks such as extreme weather impacting offshore operations and transition opportunities through energy-efficient equipment upgrades.

While no formal climate targets have been set, Superloop integrates climate considerations into its risk management and executive remuneration frameworks. The company’s infrastructure, predominantly underground fibre and Tier 4 data centres, is assessed as resilient under both low and high emissions climate scenarios.