Webjet Group navigated a challenging FY26 with flat OTA revenue and strong EBITDA margins, while its Cars & Motorhomes segment began turning around. The company withheld FY27 earnings guidance, citing ongoing macro uncertainty but noted improved recent trading.
- FY26 underlying EBITDA of $28.1 million with $93.9 million net cash
- OTA bookings down 9% but EBITDA margin held at 33.6%
- Cars & Motorhomes segment delivers earnings growth despite subdued demand
- Business Travel integration progressing with shift to higher-margin contracts
- FY27 guidance withheld; recent trading shows improvement in Business Travel and Cars
FY26 Financial Performance Amid Challenging Conditions
Webjet Group Limited (ASX:WJL) closed FY26 with an underlying EBITDA of $28.1 million and a robust net cash position of $93.9 million, demonstrating balanced execution despite a turbulent macroeconomic backdrop. The company’s online travel agency (OTA) segment posted flat revenue with bookings down 9%, yet impressively maintained a strong EBITDA margin of 33.6%. This resilience reflects strategic capital management and operational discipline in a period marked by geopolitical uncertainty and elevated domestic airfares.
Cars & Motorhomes Segment Shows Signs of Recovery
The Cars & Motorhomes business, formerly known as GoSee, is delivering operational leverage and substantial earnings growth despite softer domestic leisure demand. Bookings in Cars fell 7%, while Motorhomes bookings dipped just 1%, with the second half of FY26 marking a clear turnaround. The segment’s EBITDA rose to $4.3 million, underpinned by investments in mobile engagement, brand awareness, and expanded affiliate networks. Notably, the Cars app share of new bookings increased to 7% post-launch, up from 1% the prior year, signaling growing traction in mobile-first consumer behaviour.
Business Travel Integration Advances with Higher-Margin Focus
Webjet’s Business Travel division, bolstered by the recent Locomote acquisition, completed its integration and shifted towards a full-service, direct-to-business contract model aimed at higher margins. The segment reported a modest EBITDA loss of $0.6 million but achieved a remarkable 271% increase in its sales pipeline and a 255% jump in deals won year-over-year. This momentum is expected to accelerate with ongoing product innovation, including over 90 new features launched in six months and a scalable AI-powered self sign-up tool planned for FY27.
Strategic Investments in Technology and Ancillaries
Webjet is doubling down on technology enhancements and ancillary revenue streams to underpin future growth. The company expanded paid seat selection to 50 airlines, up from 18 in FY25, and plans to roll out paid baggage options across key airline partners in FY27. AI-driven initiatives such as a predictive pricing solution and a proprietary machine-learning dynamic pricing engine are now embedded in flight search and booking processes. These innovations aim to boost customer value and conversion rates amid a competitive travel landscape.
FY27 Outlook: Cautious but Improving Trading
Given ongoing macroeconomic uncertainty and regulatory changes impacting airline commissions and surcharging, Webjet has elected not to provide specific FY27 earnings guidance. However, recent trading has shown signs of improvement compared to earlier in the year. As of mid-August 2026, OTA bookings declined 11% year-to-date, an improvement from a 12% drop earlier in April-May, with total transaction value (TTV) down 8%. Cars & Motorhomes bookings stabilized, showing flat TTV, while Business Travel bookings and TTV grew approximately 25% year-to-date. The company plans to focus on strengthening core air performance, growing higher-value revenue streams, and accelerating execution pace in Business Travel.
Bottom Line?
Webjet’s FY26 results reflect solid operational resilience and strategic progress amid headwinds, but investors should watch closely for FY27 trading updates and the impact of regulatory shifts on earnings.
Questions in the middle?
- How will regulatory changes to airline commissions and surcharging affect Webjet’s FY27 profitability?
- Can the Business Travel segment sustain its rapid sales pipeline growth and convert it into profitable contracts?
- Will ancillary revenue expansion and AI-driven pricing translate into meaningful margin improvement in a soft travel market?