Experience Co finds lift in skydiving as FY27 starts strongly

Skydiving drives a sharper Q1 earnings result

Experience Co Limited (ASX:EXP) began FY27 with a useful operating rebound: unaudited revenue from continuing operations rose 6% to $32.8 million, while underlying EBITDA climbed 20% to $4.8 million. Underlying EBIT increased 37% to $1.7 million, suggesting the quarter’s improvement was more pronounced below the revenue line than at the top line.

The company said September trading was stronger after weather disrupted parts of August, following a solid start in July. Earnings growth was led by the Skydiving segment, where improved operating leverage from higher revenue and volumes helped offset margin pressure in Adventure Experiences. The figures exclude Wild Bush Luxury, which was divested on 1 May 2026.

Australian and New Zealand tandem volumes rise

Skydiving revenue increased 9% to $13.2 million, with total tandem volume up 7% against the prior corresponding quarter. Experience Co described the result as its strongest first-quarter tandem volume in four years.

Skydive Australia revenue rose 12%, supported by 7% volume growth and higher third-party maintenance and aircraft cross-hire revenue through Performance Aviation. Growth at drop zones in New South Wales, Victoria and south-east Queensland outweighed softer trading in tropical north Queensland. New Zealand revenue rose 4% on the same 7% volume increase, despite weather preventing both drop zones from operating for much of the second half of August. Bookings remained ahead of the prior corresponding period in both countries.

The update arrives while Experience Co continues to negotiate with Inflite Group on the proposed combination of its skydive and aviation operations. The company previously outlined a proposed Inflite combination, and said it expects to provide a further update at its annual general meeting on 18 November.

Adventure revenue grows despite softer volumes

Adventure Experiences revenue increased 4% to $19.6 million, but the underlying volume picture was less buoyant. Reef Unlimited revenue rose 2% as average revenue per customer increased 4%, partly reflecting historical price increases and a stronger contribution from the Reef Magic pontoon experience. Customer volume fell 3%, with the company citing less favourable weather and softer visitation in Cairns and Port Douglas.

Treetops Adventure produced the strongest revenue growth in the division, up 13%, as average revenue per customer rose 14%. Volume slipped 1% amid mixed site performance and weather impacts. West Beach Adventure in Adelaide, acquired on 30 June 2026, was integrated into the Treetops business during the quarter.

Weather and labour issues remain in the numbers

October trading was mixed rather than uniformly strong. Skydive Australia and Skydive New Zealand recorded strong Golden Week performance, while Reef Unlimited reported strong bookings but remained affected by regional visitation levels. Treetops volumes were still below the prior corresponding period, leaving management focused on yield.

A separate labour issue is also approaching a decision point. An intractable bargaining determination hearing involving the Australian Workers Union and Skydive Australia is scheduled for early November, with a binding decision expected by February 2027. The immediate question for shareholders is whether the stronger skydiving operating performance can persist while weather-sensitive volumes, Treetops demand and the Inflite negotiations continue to develop.