Aussie Broadband Posts $1.3B Revenue with 20% EBITDA Growth

Transformational Year Boosts Scale and Earnings

Aussie Broadband (ASX:ABB) delivered a defining FY26, posting a 9.2% revenue increase to $1.295 billion and a 19.6% surge in underlying EBITDA to $165.3 million. This growth was underpinned by a potent mix of organic expansion and strategic acquisitions, including the completion of the AGL Telco purchase, the Nexgen acquisition, and the successful migration of More and Tangerine wholesale customers onto its network.

The company’s broadband connections topped 1.11 million, a 41% jump year-on-year, cementing its position as one of Australia’s fastest-growing telcos. Market share in on-net NBN services climbed 3.7 percentage points to 12.1%, reflecting Aussie Broadband’s premium positioning and trusted brand, which has been recognised as Australia's most trusted telco for five consecutive years by Roy Morgan.

Strategic Transactions Expand Growth Platform

The acquisition of AGL Telco in June 2026 was a standout, adding 350,000 broadband and mobile connections and establishing a long-term partnership with AGL Energy. This deal not only boosts scale but opens access to AGL’s 4.2 million energy customers, with ambitions to grow telecommunications connections through this channel to 500,000 over time.

Complementing this, the Nexgen acquisition enhanced Aussie’s SME capabilities, bringing approximately 6,000 SME customers and AI-enabled business communication tools, while the More and Tangerine wholesale migration added around 269,000 active services. These transactions collectively reposition Aussie Broadband towards higher-return, diversified revenue streams with a capital-light operating model, supporting its upgraded Look-to-28 ambitions targeting over $2 billion in revenue by FY28.

Financial Discipline and Operating Leverage

Despite a competitive market and cost-of-living pressures, Aussie Broadband improved its EBITDA margin by 1.2 percentage points to 12.8%, driven by disciplined cost management and productivity gains. Operating cash flow soared 42.5% to $167.2 million, achieving a cash conversion ratio above 100%, a testament to effective working capital management.

The balance sheet remains robust, with net debt to EBITDA steady at 0.9x, providing financial flexibility for further growth. The company declared a fully franked final dividend of 3.6 cents per share, up 50% from the prior year, bringing total dividends for FY26 to 6.0 cents per share. Additionally, Aussie Broadband announced an on-market buyback program of up to $115 million, signalling confidence in its outlook and capital position.

Customer-Centric Growth and Innovation

Residential broadband remains the growth engine, with revenue up 12.4% supported by increasing adoption of higher-speed plans and mobile bundling initiatives that enhance customer retention. The Business, Enterprise & Government segment also grew 12.4%, securing significant enterprise contracts with Bakers Delight, Accor, and others, while Wholesale revenue rose 9.4% amid successful partner migrations and platform investments.

Innovation continues with the launch of international roaming and eSIM services, while a technology modernisation program is underway to simplify platforms, improve scalability, and integrate AI-enabled tools to enhance customer experience and operational efficiency.

Sustainability and Climate Commitments

FY26 marked Aussie Broadband’s first mandatory climate-related disclosures, reflecting a deepening commitment to environmental, social, and governance (ESG) principles. The company reported a 27% reduction in Scope 1 and 2 emissions and is on track to achieve 100% renewable electricity at owned sites by FY28. Community initiatives included supporting over 16,000 families with broadband access through the School Student Broadband Initiative and investing over $1.3 million in community programs.

Outlook and FY27 Guidance

With the AGL Telco migration progressing on schedule and over 146,000 services already transitioned, Aussie Broadband expects FY27 underlying EBITDA between $205 million and $215 million, representing 24% to 30% growth. Capital expenditure guidance is set at $60 million to $65 million, factoring inflationary pressures in technology markets.

Organic momentum remains positive, with approximately 11,000 net broadband connections added since July 2026, excluding migrated services. The company aims to exceed 1.3 million broadband connections in Q2 FY27, supported by continued mobile growth and new product offerings.

Aussie Broadband enters FY27 with a strengthened platform, diversified revenue streams, and a clear path to achieving its Look-to-28 ambitions, balancing scale with a customer-first ethos that underpins its premium positioning.