Transurban Group (ASX: TCL) has returned to profit in a significant turnaround for the half-year ended 31 December 2025, posting a statutory profit after tax of AUD 343 million. This compares with an AUD 15 million loss recorded in the prior corresponding period, when a ConnectEast litigation liability weighed heavily on the books.
The result, released on 19th February 2026, reflects a combination of traffic recovery across all markets, disciplined cost management, and a step change in North American operations.
Traffic Picking Up Across Every Market
Average Daily Traffic (ADT) across the group reached 2.6 million trips, up 2.5% on the prior corresponding period. Every region contributed to that growth.
- Sydney ADT rose 1.8%, with proportional toll revenue up 4.1% to AUD 971 million
- Melbourne ADT grew 3.0%, including the newly opened West Gate Tunnel, with toll revenue climbing 7.3% to AUD 531 million
- Brisbane ADT increased 2.7%, with proportional toll revenue up 6.1% to AUD 323 million
- North America delivered the standout result, with ADT up 3.6% and proportional toll revenue surging 18.9% to AUD 166 million
The West Gate Tunnel project opened in December 2025 and contributed to Melbourne’s stronger performance. Chief Executive Officer Michelle Jablko noted that the project had already started reducing trucks from local streets, with freight operators reporting meaningful travel time savings on upgraded routes.
The West Gate Tunnel project opened in December 2025, contributing to Melbourne’s 3.0% ADT growth in 1H26. [Transurban]
Heavy rainfall in Sydney affected traffic by approximately 1%, which means the underlying result for that market may have been somewhat stronger.
Revenue and EBITDA Both Grow Solidly
Proportional total revenue for the half reached AUD 2,019 million, up 6.0%. Proportional operating EBITDA came in at AUD 1,545 million, representing 6.4% growth. The operating EBITDA margin held firm at 76.5%, up 30 basis points on the prior period.
Operating costs grew 4.6% to AUD 474 million. Management pointed out that total cost growth has been limited to 1.5% from 1H24, despite cumulative inflation of approximately 5 to 6% over the same period. That’s a creditable achievement in the current operating environment.
Free Cash Flow grew 2.4%. The company attributed part of the modest FCF growth to an early refinancing decision that pulled forward some interest costs from the second half. Management expects full-year FCF to normalise, which should support the FY26 distribution guidance.
Transurban 1H26 Key Metrics Summary [Transurban]
North America Delivers a Step Change
The North American portfolio delivered results that stood apart from the rest of the group.
Proportional operating EBITDA in the region jumped 22.3%, and Free Cash Flow grew by 22% as well. Revenue rose 18.9%, supported by the completion of the I-495 Northern Extension ahead of schedule. The I-95 and I-495 Express Lanes in the United States carry 62 years of remaining concession life, underpinning long-term value for securityholders.
Jablko described the improvement as a “step change” in operational performance, the product of two years of concentrated effort to build out the North American business.
Distribution Unchanged at 69 Cents Per Security
The company confirmed a 1H26 distribution of 34.0 cents per stapled security, covered 102.5% by Free Cash excluding Capital Releases. The distribution is payable on 24th February 2026 and will not be franked.
Full-year FY26 distribution guidance remains at 69.0 cents per stapled security, representing growth of approximately 6.2% on FY25. The payout ratio is expected to fall within the 95 to 105% range.
For income-focused investors watching ASX reporting season results across industrials, Transurban’s distribution consistency will attract attention. The company’s balance sheet remains well managed, with AUD 3 billion in corporate liquidity and 88.6% of debt hedged. Weighted average debt maturity has extended to 6.9 years.
What’s Ahead
Widened sections of Sydney’s M7 are set to open from March 2026, providing improved connectivity for Western Sydney motorists and those travelling to the new Western Sydney Airport. That should offer a further traffic tailwind into 2H26.
On the NSW toll reform front, Transurban continues to engage with the government on solutions announced in December 2025, which the company believes will benefit both motorists and the broader road network. The AUD 36 billion investment Transurban and its partners have made in Sydney’s network makes this a key conversation to watch.
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Market Performance
As of 8th February 2026, Transurban shares were trading at approximately AUD 13.78 per share, within a 52-week range of AUD 12.46 to AUD 15.25. The company’s market capitalisation sits at approximately AUD 44 billion.
