Mayank Bansal, CFA
Mayank Bansal is a CFA Charterholder and heads the Equity Research team at Kapitales Research, with over 5 years of experience analysing global equity markets. He leads fundamental, data-driven research combining rigorous financial analysis with macro trends.
Kelsian Group Reports Record FY26 Earnings as Global Transport Operations Expand
Highlights:
Kelsian Delivers Strong FY26 Financial Performance
Kelsian Group Limited (ASX: KLS) released its FY2026 results on 26 August 2026, covering the financial year ended 30 June 2026. The global transport operator reported higher revenue and earnings, supported by contract growth, indexation, new service wins and operational improvements across its businesses.
Revenue from ordinary activities reached AU$2.403 billion, compared with AU$2.209 billion in FY25. Statutory EBITDA increased 8% to AU$298.0 million, while underlying EBITDA climbed 11% to AU$315.8 million. Underlying NPATA rose 17% to AU$111.1 million, while statutory NPAT increased to AU$63.5 million from AU$54.5 million.
Australian and International Operations Support Growth
Kelsian recorded revenue and earnings growth across its Australian Bus, International Bus and Marine and Tourism divisions. In Australia, contractual indexation helped offset higher fuel, labour and maintenance expenses, while new and extended transport contracts contributed to operating growth.
The US business continued expanding through industrial workforce transportation contracts, particularly across Texas and Louisiana. Kelsian also secured additional opportunities in the UK, including Liverpool City Region bus franchising contracts scheduled to begin in January 2027.
Tourism Portfolio Divestment Progresses
Kelsian entered binding agreements in February 2026 to sell its Tourism Portfolio to Journey Beyond for an enterprise value of AU$161 million. Following year-end, the parties agreed that SeaLink Rottnest would be excluded from the transaction, with Kelsian retaining the profitable commuter ferry business alongside its other marine operations. As a result, the remaining Tourism Portfolio transaction is valued at AU$145.8 million. The sale remains subject to ACCC and FIRB approvals, key contract change-of-control consents and other customary conditions, with completion expected in the first half of FY27.
FY26 Dividend
The Company’s directors approved a fully franked final distribution of 10 cents per share, bringing the total dividend for FY26 to 18 cents per share.
Outlook
Kelsian enters FY27 with opportunities spanning Australian bus contract extensions, US workforce transportation, UK franchising, Singapore and New Zealand contracts, and marine services across Australia and New Zealand.
The Group is also targeting further balance-sheet improvement and disciplined capital allocation while completing the Tourism Portfolio divestment. Future performance will remain exposed to fuel costs, labour conditions, regulatory changes, contract execution and broader economic conditions.
Note- All data presented is based on information available at the time of writing.
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