Earnings Call: H2 2026

Aug 25, 2026

Summary

Record FY 2026 results featured 8.8% revenue growth, 10.8% EBITDA growth, and margin expansion across all divisions. Leverage fell to 2.46x, and strong cash generation supported increased dividends. FY 2027 guidance targets further EBITDA growth, with continued focus on contract wins and operational efficiency.

I would now like to hand the conference over to Mr. Graeme Legh, Group CEO. Please go ahead. Thank you, Mel, and good morning everyone, and welcome to Kelsian Group Limited's full year results presentation for the 12 months ended 30 June 2026. I am Graeme Legh, Kelsian Group CEO, and I am joined this morning by Andrew Muir, Kelsian's Group CFO. Today I will begin with an overview of the Group's record results for FY 2026 and the key strategic, operational, and sustainability achievements that have been delivered during the year. Andrew will take you through the detailed group financial performance and the results from each of our operating divisions. I will then discuss the outlook for FY 2027 and provide details of our growth pipeline and priorities. FY 2026 was an important year for Kelsian. We delivered another record result, strengthened the balance sheet, advanced the streamlining of our operating portfolio, continued the disciplined execution of our growth priorities, and positioned our operations to capitalize on the growth pipeline across our markets. Before turning to the FY 2026 result, I want to provide an overview of the Kelsian Group's global operations and the key characteristics of our business, which are set out on slide 3. Kelsian is a leading multimodal transport operator connecting people and places across Australia, the U.S., Singapore, the U.K., and the Channel Islands. To give you a sense of our operating scale, at 30 June, we employed 13,300 people and operated more than 6,300 buses and 120 vessels from more than 100 operating locations. Over the year, our services delivered 384 million essential customer journeys. In Australia, we are the largest multimodal bus and ferry operator with significant contracted bus operations across all mainland capital cities and a portfolio of contracted marine services. In the U.S., we are the second largest motor coach operator with operations spanning seven states across the south and southwest of the country. In Singapore, we are the third largest public transport bus operator, and in the U.K., we have an established operating platform bringing bus franchising expertise to the regional U.K. bus market. A key feature of the portfolio is the quality of the revenue base. More than 90% of group revenue is contracted or non-discretionary in nature, primarily backed by governments and high-quality corporate customers. The combination of our proven operational capabilities, our scale, long-term customer relationships, and predictable resilient revenues provides a strong platform for our disciplined growth into the future. Turning to slide 5. I am very pleased to today report another record result for Kelsian. Group revenue increased by 8.8% in FY 2026 to AUD 2.403 billion, with growth across all geographies. Underlying EBITDA increased by 10.8% to AUD 315.8 million, which, after adjusting for the delayed Kangaroo Island mobilization costs, is at the top end of our updated FY 2026 EBITDA guidance range of between AUD 303 million and AUD 312 million. Underlying EBIT was up 14.5% to AUD 155.7 million, and underlying net profit after tax and before amortization was up 17.2% to AUD 111.1 million. The result demonstrates the resilience of our business model. The majority of FY 2026 revenue was contracted, and contractual indexation mechanisms provided important protection against inflationary pressures and the significant volatility in fuel prices witnessed in the second half of the period. Growth was supported by both new contract wins and existing contract growth, including from employee shuttle service contracts in the United States. The full year contribution from the Bankstown rail replacement bus services, increased service levels and contract indexation from our bus public transport contracts, and improved performance in marine and tourism. Importantly, the earnings result again translated into strong cash generation and a stronger balance sheet. Net operating cash flow was AUD 220.1 million, up 7.3%, and leverage reduced to 2.46 times, meaning we are now within our target leverage range of between 2 to 2.5 times underlying EBITDA. Over the three-year period to June 2026, underlying EBITDA has grown at a compound annual rate of approximately 25%. After one-off costs associated with acquisitions, the tourism portfolio divestment, and the implementation of the new group finance system, statutory net profit after tax was AUD 53.5 million, up 16.6%. Moving to slide 6. FY 2026 was a year of strong operational execution and meaningful strategic progress. Operationally, the United States continued to perform strongly with the ramp-up of new and existing industrial contracts, solid growth in corporate and technology employee transport services, and a pleasing charter contribution. In Australia, operating performance at our key urban public transport contracts improved as service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable. These initiatives helped offset the higher repairs and maintenance costs associated with operating older diesel vehicles. The mobilization of the new Kangaroo Island ferry contract has been delayed, with commencement now scheduled for October 2026. Approximately AUD 3.5 million of mobilization costs for this new service were not incurred in FY 2026 and will now be incurred in FY 2027. In Australian Bus, we signed a two-year extension of our Sydney Region 6 bus contract from July 2026 on improved terms and successfully commenced the Ipswich and Logan services in Queensland. Both provide us with a stronger operating platform as we enter FY 2027. In the United Kingdom, the award of Liverpool bus contracts commencing in January 2027 validated our strategy of establishing an operating presence ahead of regional U.K. bus franchising. We also acquired South Wales Transport, positioning Kelsian for the pipeline of franchise opportunities expected across Wales. In July, we were awarded new long-term ferry contracts in Auckland and entered into an agreement to acquire Belaire Ferries, establishing a strategic platform for further growth in New Zealand. Across the group, our focus remains on operational excellence, disciplined capital management, and growth that meets our capital management and allocation framework return goals. Alongside the FY 2026 results, today we've also released an update on the proposed tourism portfolio divestment from within our SeaLink Marine & Tourism division. In February, we announced that Journey Beyond had agreed to acquire the identified tourism portfolio operations for total cash consideration of AUD 161 million. The transaction was subject to ACCC and FIRB approvals and other customary conditions. Since the announcement in February, the ACCC has been assessing the potential divestment as two transactions, the main tourism portfolio and separately the SeaLink operations to Rottnest Island in W.A. Kelsian and Journey Beyond have agreed that SeaLink Rottnest will no longer form part of the tourism portfolio. Having removed SeaLink Rottnest from the transaction perimeter, we are confident we have a compelling case for ACCC approval of the remaining tourism transaction. SeaLink Rottnest is a profitable, standalone commuter ferry business with a strong brand, and from Kelsian's perspective, it is business as usual for our W.A. marine operations team. Kelsian has significant marine operations outside of the tourism portfolio, and we now intend to continue to operate SeaLink Rottnest alongside our Transperth commuter ferry operation and the other retained ferry operations around Australia and soon to be in New Zealand. We continue work with Journey Beyond to satisfy the required regulatory approvals for the remaining tourism portfolio, which accounts for more than 90% of the original transaction value, and we still expect this transaction to complete in the first half of FY27. Post-completion, Kelsian will be a more focused global commuter and contracted transport business, delivering bus, motor coach, and marine transportation services. Before handing to Andrew, I want to acknowledge the important role Kelsian plays with the many local communities we serve and in enabling cleaner, more accessible, and more connected cities. Kelsian is a people business. Our employees provide important transport services that connect communities every day, and the safety of our people and passengers remains our highest priority. We continue to work with our government and corporate partners to improve service quality, support mode shift to public transport, and accelerate the transition to lower emission fleets and infrastructure. In FY2026, the group delivered improved safety outcomes for our workforce with a 24% improvement in lost time injury rates and a 23% improvement in total recordable injury rates. It was pleasing to see the improvement in these key industry injury frequency measures while maintaining our focus on continual improvement to deliver stronger safety outcomes across the group. We now operate 454 zero-emission buses across Australia, and our Australian bus Scope 1 intensity reduction target remains on track. There were zero significant spills to the environment across our operations, and we exceeded our target for female board representation. We also directed AUD 4.2 million to Indigenous suppliers and continued our partnership with the Royal Flying Doctor Service. Overall, our services played a critical role connecting communities, delivering more than 384 million essential customer journeys during the year. I will now hand to Andrew, who will take you through the group's detailed financial performance and the results from each of our operating divisions. Thanks, Graeme, and good morning, everyone. I am really pleased with the record full-year financial result that Kelsian has delivered with revenue growth across all divisions and group margin expansion. Revenue increased by 8.8% to just over AUD 2.4 billion. Key drivers were the ramp-up of new and existing contracts in the United States, the full-year contribution from the Bankstown Rail Replacement project in Sydney, the benefits of the contract indexation mechanisms we have in our long-term contracts with government, and service growth across the group. Underlying EBITDA was AUD 315.8 million, up 10.8%, and margins improved. The margin improvement reflected growth in key USA employee shuttle contracts, the Bankstown Rail Replacement contribution in Sydney, and fuel mitigation strategies in the non-contracted operations. Below EBITDA, depreciation increased, reflecting the expanded USA motor coach fleet, new vessels coming into service in the marine business, and the broader asset base supporting recently commenced contracts. The effective rate of tax was 20.1%, slightly below our expectations for an effective tax rate of between 22% and 25%. This was due to international tax rate differentials and the benefits of exempt shipping income in Australia. Underlying EBIT was AUD 155.7 million, up 14.5%. Underlying NPATA was AUD 111.1 million, up 17.2%, and earnings per share before amortization increased 16.8% to AUD 0.149 per share. Statutory NPAT of AUD 63.5 million was an improvement of 16.6% on the prior year. Included in the statutory results were one-off costs associated with several small acquisitions completed in the period, costs associated with the divestment of the tourism portfolio, and implementation costs of the new global group finance system. Combined, these total AUD 14.5 million after tax. Reflecting the strength of the result and cash generation of the business, the board has declared a fully franked final dividend of AUD 0.10 per share, an increase of AUD 0.005 per share, taking the full-year dividend to AUD 0.18 per share. Turning to slide 11. Cash generation remains a strength of the business and continues to be well supported by long-term contracts and a high proportion of contracted or non-discretionary revenue. Gross operating cash flow was just under AUD 300 million and net operating cash flow increased by 7.3% to AUD 220.1 million. Cash conversion was just over 91%, underpinned by the predictable and defensive nature of our contracted earnings. Investing cash flow was AUD 136.6 million and reflected a combination of sustaining maintenance expenditure and targeted growth investments, particularly in the United States and U.K., as well as the two new Kangaroo Island vessels and associated infrastructure. I will provide some more details of the split of capital expenditure on slide 13. The group ended the year with AUD 176.3 million of cash reserves, providing strong liquidity and flexibility as we move into FY 2027. The business is generating meaningful cash while funding growth CapEx, paying increased dividends, and continuing to bring leverage lower as earnings grow. To slide 12. Leverage reduced from 2.7 times a year ago to 2.46 times at 30 June 2026 and is now within our target leverage range of between two and two and a half times. The reduced leverage has been underpinned by earnings growth, strong operating cash generation, and disciplined capital expenditure. In relation to our borrowings, it is important to distinguish between Kelsian's corporate borrowings and special purpose vehicle debt on our balance sheet attached to government-backed contracted assets, because the economic risk of these is quite different. Limited recourse SPV debt funds government contracted assets. It is ring-fenced from the rest of the Kelsian Group. It is serviced by the associated contract cash flows. It amortizes with the asset and importantly, is excluded from our covenant leverage calculations. In addition, a small component of our corporate debt relates to government-backed contracted assets that are expected to be recovered at the end of the relevant contract or moved into an SPV structure. At 30 June, we had AUD 32.3 million of government-backed contracted assets on the Kelsian balance sheet, pending transfer into the SPV ring-fence structure. Excluding those contracted government-backed assets and the associated earnings, leverage would have been 2.37 times at year-end. The key point for investors is that this financing structure supports government fleet investments, including the rollout of electric buses, while materially reducing stranded assets and residual value risk to Kelsian. We remain focused on maintaining a strong balance sheet while retaining flexibility to invest where opportunities meet our return hurdles. With leverage back inside the target range, we retain the flexibility to take advantage of organic and inorganic growth opportunities we see across the group. Turning to capital expenditure. Total net CapEx in FY 2026 was AUD 133 million, after taking into account proceeds of AUD 8 million from asset sales. The largest chunk of CapEx investment was in the international bus division, principally relating to new and secondhand motor coaches to support the ramp-up of new and existing contracts in the United States, buses for the new Liverpool contract, which commences in January, plus new buses in Jersey, which we anticipate will move into an SPV structure. Marine & Tourism CapEx was AUD 31.6 million, reflecting the Kangaroo Island vessels and infrastructure expenditure and vessels in South East Queensland. AUD 15 million have been carried forward into FY 2027 because of the revised delivery timetable for the new Kangaroo Island boats and infrastructure. Australian bus capital investment was AUD 14.9 million, comprising motor coaches in the resources sector of our business, replacement buses for Stradbroke Island, and electrical charging infrastructure. FY 2027 forecast CapEx is approximately AUD 123 million, including AUD 85 million of sustaining maintenance CapEx, the carry forward of AUD 15 million from FY 2026, and approximately AUD 23 million of committed growth CapEx in various operating divisions. Any additional growth CapEx will remain subject to meeting our strategic and investment return hurdles. Turning now to the divisional performance and starting with Australian Bus on slide 15. Revenue growth was underpinned by contract indexation and the full-year contribution from Bankstown Rail placement services. The division delivered an improved margin despite inflationary pressures and fuel volatility. The contractual indexation mechanisms provided effective protection against fuel price movements and other inflationary cost pressures, and the operating improvement initiatives implemented during the period improved performance. Sydney operations improved and stabilized over the year as network service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable. We signed a two-year extension of the Region 6 contract in Sydney, which commenced on July 1, 2026, on improved terms, providing a stronger foundation for FY 2027. The Bankstown Rail project continued to make a meaningful contribution for all of FY 2026 and is now expected to wind down during the first half of FY 2027. The division also successfully commenced the Ipswich and Logan contract during the year, representing Kelsian's first competitively tended bus contract in Queensland and establishing an important platform for future growth in the state. To slide 16. International Bus was the strongest divisional contributor to group growth, with revenue increasing 17.4% and underlying EBITDA increasing 28.1%, led by the United States as the key contributor to the FY 2026 results. All Aboard America! Holdings Inc. achieved strong revenue and margin growth as new industrial employee shuttle contracts commenced and ramped up much faster than expected and existing contracts expanded. During the period, we leased two additional depots in the Gulf region to support the larger fleet and improve maintenance capability and vehicle availability. Corporate and technology employee shuttle activity continued to grow, including a new data center contract, while charter activity was supported by major events, including the FIFA World Cup. The U.S.A. pipeline of new and existing industrial contracts remains strong. We continue to see opportunities to grow with existing clients and opportunities for new work across LNG, energy, data center, and major infrastructure markets. Singapore delivered another stable result. The Sentosa contract commenced successfully during the year, and the Bulim contract expanded with additional services supported by strong operational and maintenance performance. In the U.K., our strategy was validated by the award of Liverpool City school bus contract commencing in January 2027, and the acquisition of South Wales Transport also provides local capability and incumbency ahead of significant regional bus franchising pipelines. For Marine & Tourism, Marine & Tourism delivered revenue growth despite subdued consumer confidence and fuel price volatility, with yield management, surcharges, and operational initiatives helping to protect earnings. The business also managed the uncertainty associated with the proposed divestment of the tourism portfolio well. Performance benefited from contracted ferry demand, improved utilization of new vessels, and yield management. Elevated fuel costs impacted the non-contracted parts of M&T, but was mitigated through targeted surcharges, fare adjustments, and operational efficiency initiatives. The team has continued preparations for the launch of the new Kangaroo Island vessel contract. Service commencement is now scheduled for October 2026, and our focus is on a safe and reliable transition while maximizing returns from the increased capacity, frequency, and improved customer value proposition. Post-divestment, the retained marine businesses have similar infrastructure-like characteristics to our public transport bus contracts. Revenue from the division will be less sensitive to changes in economic conditions and will be backed by long-term, high-quality service contracts with lower capital intensity. Finally, turning to corporate costs. The increase during the year related to several items. These included the performance of our captive insurance structure and elevated claims activity for bus accidents, the recognition of non-cash long-term incentive expense, and continued investment in cybersecurity. The key corporate milestone was the successful go-live of the global Workday finance system on July 1, 2026, supporting stronger governance, controls, data visibility, and process consistency across the group. The platform standardizes processes, strengthens governance and control, and provides a more scalable finance environment for the group. Work on the Workday HR implementation has commenced and is scheduled to go live in the first half of FY 2028. The anticipated FY 2027 implementation cost for Workday HR are AUD 12 million. While implementation costs have affected near-term earnings, the new platform is expected to deliver efficiency, governance, and controls over time as more than 13 legacy systems are retired and data and processes are standardized and automated across the group. The successful finance go-live establishes a stronger platform for governance, control, data visibility, and process consistency as the group continues to grow. I'll now hand back to Graeme to discuss growth and the outlook for FY27. Thanks, Andrew. Turning to slide 20. The foundations are in place for another strong result in FY27. In FY26, our focus on operational execution delivered another record result. We strengthened the balance sheet, and we continued to build a significant growth runway across several geographies. Our key focus areas are continuing to drive operational efficiencies, contract extensions, new contract wins, delivering service growth, and capitalizing on growth opportunities in the U.S. and the U.K. Specifically, we will transition and mobilize the new Kangaroo Island contract, prepare for the New Zealand ferry contracts commencing in July 2027, and continue the orderly separation of the tourism portfolio from the retained marine operations. In terms of guidance for FY27, underlying EBITDA is expected to be between AUD 320 million and AUD 335 million, assuming no significant deterioration in the operating environment. Guidance is inclusive of the AUD 3.5 million of mobilization costs for Kangaroo Island, which due to delays, will now be incurred in FY27. Importantly, because the tourism portfolio transaction remains subject to regulatory approvals and the timing of completion is not yet known, FY27 guidance includes the contribution from the tourism portfolio for the full year, assuming no change to the operating portfolio. We will update guidance when there is sufficient visibility on completion and the financial impact of the transaction. I'm also pleased to report that the group has commenced the new financial year strongly, with July trading being in line with expectations. Slide 21 brings the growth strategy together under three complementary pillars, all anchored in disciplined capital allocation, a focus on our core strengths, and sustainable shareholder returns. First, we will protect and grow our core markets across Australia, the U.S., the U.K., and Singapore by retaining and expanding contracted bus and marine services, improving the performance of existing networks, and leveraging our customer relationships, operational capability, efficiencies of our scale, and our track record. Second, we'll selectively grow our international platforms and enter attractive new markets. The immediate priorities are continued growth in the U.S., execution of the U.K. bus franchising opportunity, and expansion in New Zealand, targeting long-term contracted earnings in markets with strong fundamentals. Third, we'll pursue targeted strategic opportunities, including bolt-on acquisitions in our existing geographies that enhance capability, scale, or geographic reach, while recycling capital from non-core assets where appropriate. Across all three pillars, underwriting and returns discipline remains central, and all growth must meet our strategic and financial hurdles and support long-term value creation. Slide 22 sets out an important structural tailwind supporting the long-term outlook for Kelsian. Investment in better public transport creates a reinforcing cycle of improved services, higher patronage, and further network investment. With households increasingly focused on transport affordability, governments are investing in more frequent, reliable, and accessible public transport as part of broader cost of living, congestion, and sustainability objectives. We are seeing tangible evidence of that policy support. New South Wales is investing AUD 452 million to expand bus services, Victoria is enhancing its urban bus network, and Western Australia has announced additional investment in ferry services and electric buses. Governments are investing in service frequency, infrastructure, and technology at the same time as households are increasingly focused on transport affordability in the context of ongoing cost of living pressures. The opportunity exists to convert that investment and affordability support into sustained patronage growth through improved frequency, connectivity, and customer experience. Better frequency, reliability, and connectivity can attract and retain passengers. Higher patronage then supports stronger asset utilization, more efficient network planning, and the case for further investment into public transport services and infrastructure. The broader system benefits are also important. Reduced congestion, lower emissions, more affordable transport, and reduced pressure on road capacity. Kelsian is well-placed to participate in this cycle as a trusted operating partner with scale, local relationships, and a strong track record of mobilizing and improving complex transport networks. Turning to slide 23. The United States is one of our most attractive growth markets, and we believe the platform we have established provides strong foundations for the next phase of our growth. We are positioned across high-growth sectors, including industrial, corporate, and technology employee shuttle services. In particular, major investments in energy, data centers, and infrastructure are supporting sustained demand for workforce transportation. AHE is already the second-largest motor coach operator in the United States, but the market remains highly fragmented, with more than 87% of operators running fewer than 25 coaches. That creates a significant opportunity to scale from our established platform. Our customer base also supports recurring organic growth. Since the acquisition in June 2023, we have maintained 100% renewal track record for key contracts while expanding services with a number of important existing customers. The growth pathway is therefore multidimensional. New contract wins, expansion with existing customers, entry into adjacent geographies and end markets, and disciplined bolt-on M&A where it strengthens our capability, scale, or geographic reach and meets our return requirements. The U.K. represents one of the group's most significant capital-light organic growth opportunities. The tender pipeline is building progressively across multiple regional authorities with more than 2,000 buses currently anticipated to be franchised in the next 12 months and an estimated addressable market of approximately 10,000 buses over the next three to five years. Our recently announced Liverpool contract wins provide important early validation of the strategy. The contract commenced in January 2027, and together with our operating platforms in Liverpool and Wales, strengthen our local capability, our relationships, and our incumbency credentials. The opportunity is attractive because the franchise model can provide long-term contracted earnings without requiring the same level of balance sheet capital as a traditional asset-heavy expansion. We will remain selective and disciplined, focusing on markets where our operating capability, local position, and customer proposition gives us a clear strategic advantage and where returns meet our investment hurdles. Our objective is not simply to build scale, it is to create a high-quality, defensible regional platform that can compound through successive franchise opportunities. In closing, FY 2026 demonstrates the quality and resilience of Kelsian's business model and the progress we have made in positioning the group for its next phase. We delivered record earnings and strong cash generation, reduced leverage into our target range, and continued to simplify the portfolio. At the same time, we are well-placed for the next phase of growth with credible growth platforms in the United States, the U.K., and New Zealand, while retaining strong positions across our Australian markets. The priorities for FY 2027 are clear. Deliver operationally, progress and complete the tourism portfolio divestment, maintain capital discipline, and convert the best opportunities in our growth pipeline into sustainable earnings and long-term shareholder returns. Finally, on behalf of the board and the management team, I would like to thank our people right across the group for their commitment to the transport services they provide to our customers and communities every day. With that, I will now hand back to Mel, who will facilitate any questions for Andrew and I. Thank you. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Cameron McDonald with E&P. Please go ahead. Hi, good morning, guys. Questions from me, just in terms of the tourism portfolio and the slight change to that. You have previously guided that the portfolio generated about AUD 24 million, AUD 25 million of EBITDA. If we are adjusting our expectations to now keep SeaLink Rottnest, what is the adjustment to the group earnings that we should be expecting off the back of that? Thanks, Cameron. The Rottnest business is pretty much in line with the rest of the portfolio in terms of its contribution. I think you can see we have outlined the difference in the total consideration and the contribution that was expected from Rottnest, which is slightly under 10%, and that is similar from an earnings perspective. Okay, awesome. Just two questions on AHI, if I can. You have called out some benefits from the World Cup. Can you quantify that so that we have an understanding of what the potential headwind next year actually looks like with that? It was certainly a few million AUD benefit directly out of the World Cup. Whether that is a direct headwind or not is to be seen. We certainly plan on getting utilization out of those assets that were used by the World Cup. But it was a nice bonus in FY 2026 with that peak in demand in that June period, which is typically when we see our charter services start to wind down for the year. Repeating that size of opportunity at that time of the year is probably more difficult looking into FY 2026 than was delivered in FY 2026. Okay, thank you. Just staying on AHI. You have got some good growth in that contract market and corporate market. When are you starting, or have you started turning your mind to more public transport type services and contracts? We certainly have. That is a focus, and we have had a pretty good track record delivering on those contracts since we bought the business in 2023, having renewed all of our existing relationships with some key state transport authorities in Texas, Colorado, and New Mexico. They certainly remain a focus, and we continue to go after them. They probably do get a bit drowned out in the grand scheme of things when you compare them to the contribution that comes from those significant industrial sector clients in the Gulf area. That is probably why it all gets a bit drowned out, but we certainly have not lost focus of the opportunity in the transit world in the U.S. for the AHI business. Are there any contracts coming up that you would potentially be interested in bidding on, either in the existing states or new adjacent states? Our focus at the moment is very much within our existing geography, and there is a pretty steady pipeline of ongoing opportunities. The nature of the U.S. business is that the contract size is probably smaller than we see in Australia, and the contract term is not quite as long. It is really an ongoing cycle of bidding for those opportunities. But our focus at this stage is on bidding for opportunities where we have got existing or adjacent operations as opposed to bidding in new cities where we do not have a presence. Okay, great. Thank you. Thank you. Your next question comes from Aryan Norozi with Jarden. Please go ahead. Hi, guys. Before I get into my questions, just a clarification on the last question, please. When you said the World Cup is a few million dollar benefit for this year, was that to the EBITDA line or you were talking the revenue line? That was at EBITDA. Just to clarify, though, we are not expecting that to completely drop out. There will certainly be utilization from those assets this year. It is just whether we get that peak in utilization at that exact same period like we had the benefit from FIFA this year. Got you. So maybe 2 or 3 million AUD EBITDA, but not all of that winds out. There is obviously we are going to replace some of it is the message. Yeah, correct. It doesn't just drop out is your. Yep. Perfect. Just on my questions, just in terms of, can you just talk through, maybe for this year, what the incremental EBITDA contribution was from the LNG projects that you've won ramping up and the incremental benefit into FY 2027, please, just in terms of finishing to annualize? Because obviously first half 2026 was run ramp-up mode, second half more normal of 2026, and then FY 2027 is probably the full run rate for those two contracts. Yeah, that's probably right, Ary. Obviously, a big component of the growth delivered in the international bus segment, which was, I think, 28% growth in EBITDA, a big proportion of that was driven by the ramp-up in those industrial sector contracts. Now, they probably ramped up or they did ramp up faster than expected during FY 2026, and we got a bigger earnings contribution out of those contracts than we expected when we were sitting here this time last year. What that means for FY 2027 is the growth rate, we're certainly expecting to moderate out of those contracts. There is still further growth to come, but the rate of growth is going to be at a much lower level than what was witnessed over the course of FY 2026. We do expect those new contracts to both reach full capacity at some point in FY 2027, but that is dependent on the EPC, the prime contractors, and their ability to continue to hire. We're a bit beholden to how quickly they can hire the construction workforce as to how quickly we get to that full capacity. But sitting here today, we would expect to get to full capacity for both those contracts at some point during FY 2027. Got you. Back of the envelope, based on my just rough calcs, the LNG ramp-up in 2027 on 2026 should be another AUD 5 million-AUD 6 million of EBITDA. Is that roughly in the ballpark of how. Am I thinking about that at the right way? Yeah. Roughly, probably not quite that high, but roughly, it's probably not a million miles away from the mark. Got you. Then last one. Just in terms of oil prices, obviously, you've delivered a very strong result despite oil prices going up 50%, 60% from a few months ago. To what extent are you factoring a headwind, net EBITDA headwind from oil prices into guidance for FY 2027? To what extent is that realistic versus just obviously provisioning for some uncertainty, rightly so? Yep. I think the result really demonstrates how limited the impact of oil prices is on our business as a whole. To deliver this result in an environment where we've seen oil prices move to the extent they have, given we're a very significant user of diesel, I think demonstrates the market how well our contracts protect us from movement in things like fuel price when you look at the group as a whole. There are pockets of our business that are more exposed to oil prices. The big one of that is in the Marine & Tourism division, where we don't have that contractual protection in a number of our operations. We certainly saw some headwinds in the final quarter of FY 2026 in those operations, both from higher input prices for our operation with diesel, but also more generally just in terms of reduced demand given higher cost of living pressures on the consumer side. We are expecting that to continue for those parts of the marine and tourism business. Looking at that division on its own, there is certainly some headwinds there as we look towards FY 2027. I think from a group perspective, we remain very comfortable that as a whole, our business is well protected from changes in oil prices or any further changes in oil prices moving forward. Got you. Sorry, very last one, if I can sneak one in. The Aussie bus EBITDA margins, they stepped up in the second half to about 11.5%, and the first half was 11%. You are making progress there. How do we think about the ramp-up into FY 2027? Should there be a further step-up progressively in first half 2027 above the 11.5% and then second half further improves? Or is 11.5% probably the right run rate steady state for the business in FY 2027, please? Yeah, I think 11.5% is probably pretty good. Look, we want to keep pushing, and there still is improvement to be made out of that business, but it is probably more incremental. It is probably driven by delivering on some of the growth initiatives that the government has out there in terms of investment into the bus network. As those growth services come in, they come in at a higher margin than the baseline business, which over time gives us further incremental margin expansion. I think looking at second half FY 2026 into first half FY 2027, not expecting any big changes either up or down from where that margin was for the second half. The previously mentioned issues, like the congestion and the EV delays, this margin reflects the resolution of that, so we shouldn't be factoring any benefit from that flowing through? Yep. I think there is still probably room to play out on the congestion side. Where we did make material improvement in the second half of FY 2026 was on resolution of some of the delayed electrification projects with some of our major state governments. They have acknowledged those delays. They have started compensating us for the maintenance costs of maintaining the aging diesel fleet. And alongside that, some big projects, particularly in Sydney, are now nearing completion or have completed, which have allowed a significant number of new electric vehicles to enter service, which come with lower costs and obviously flow through to the bottom line and are driving some of that margin expansion that we saw in the second half of FY 2026. Perfect. Thanks, guys. Appreciate it. Thank you. Your next question comes from Owen Birrell with RBC. Please go ahead. Morning, guys, and congratulations on a pretty solid result. I just wanted to ask a further question, a follow-up question on All Aboard America! Holdings Inc. Very strong revenue result during the period, and obviously very strong EBITDA margin for the international group. I am wondering if you can give us a sense of what the EBITDA margin has expanded by in the U.S. alone, so that we can sort of split out what that U.S. business did versus Singapore and U.K. We don't split it out, but I think it's fair to say, Singapore and the U.K. were pretty much in line with previous periods. The incremental earnings and margin coming out of that international bus division were driven by changes in the U.S. or improvements in the U.S. Okay. That's understood. Can I also ask on the CapEx guidance that you've provided, I think AUD 7 million for the U.K., is that all for the Liverpool buses or is there anything else in there for some of the other regions or the proposed tenders that are coming through over the next six to 12 months? Yeah, there's the Liverpool buses, so there's some further buses we need to buy for those school bus contracts. And there's some further capital we think for some new small contract wins in the U.K. Can I ask, you mentioned that the buses for Liverpool, the Liverpool contract and Jersey, will be moved into an SPV structure. I noted that the SPV debt balance had reduced almost about AUD 10 million. I'm just wondering, well, firstly, what's come out of the SPVs, but also is it fair to assume that that AUD 7 million is going back into SPVs? Yeah, the majority, it is only for Jersey, where the SPV structure will likely take effect. There will be some assets transferred into the SPV structure for Jersey. Then on the remaining portfolio, it is the normal amortization that exists on those assets. Okay. Just one final one from me just on that CapEx theme. You have called out AUD 11 million for U.S. CapEx. Is it fair to assume that is all organic growth, or is there anything in there for any potential bolt-ons? No, yeah, all organic growth. Okay. In terms of potential bolt-ons, is there any things that are obvious at the moment or is it very much sort of a wait and see? I think there are certainly some attractive opportunities in the U.S. that we're keeping a very close eye on. As we stand at the moment, there's no huge time pressure for us to rush out and do anything in the U.S., so the overall focus remains getting an outcome on the tourism portfolio. We're certainly keeping a close eye on the key targets in the U.S. And if there is a need to act on any of them sooner rather than later, we think we're in a position where we can do that. All very clear. Thank you. Thank you. Your next question comes from Alan Franklin with Canaccord. Please go ahead. Morning, Graeme. Morning, Andrew. Thank you for your time. Just hoping to get a bit of color. I know you referenced the LNG side of things ramped up better than expected over the course of the year. If you were sitting here last year versus now, just sort of frame perhaps what didn't go as well as expected, what underperformed during the year. Just sort of bridge that gap between what could have been low end of guides coming to this point. Is that in Ahi specifically or just No, sorry, just broadly across the group, just sort of noting where obviously have hit above guide, probably carried by LNG and perhaps KI pushing back. But looking back, what perhaps didn't work, didn't underperform in FY 2026 that then you hope carries forward stronger? I think if you go back to this time last year, I think certainly at least in the first half, Australian Bus underperformed where we expected. We continued to see that margin deterioration in the first half when we were sort of hoping that we'd seen the worst of it at the back end of FY 2025. Now, pleasingly, we managed to turn that around, or the guys managed to turn that around due to some changes in the second half. So, I think we got that back on track. But over the full year, probably was a bit under where we're expecting, just purely on that margin side, given some of those cost-based pressures around maintaining older vehicles and operating performance associated with congestion and other things around the network. So that was certainly one of them. And then, Marine & Tourism. Marine & Tourism came off a very strong FY 2025, and it started FY 2026 very positively. But there were certainly some impacts from March onwards as we started to feel the impact of oil price movements and what that did to consumer sentiment, particularly for the more tourism-exposed parts of Marine & Tourism. So I think, Marine & Tourism, we're pretty pleased we actually got a better result than FY 2025 and FY 2026. But, if you go back to March this year, that could have actually done a fair bit better if the world hadn't changed back in March. So they're probably the two areas. I think it's fair to say, internationally, U.K. and Singapore did as expected. Both had pretty solid performances. And then the U.S. was the one where we certainly did better than expected, given the faster ramp-up of those two new LNG contracts. Thank you. Just perhaps looking into that FY 2027 guide. Appreciate we have touched on All Aboard America! Holdings Inc. in a bit of detail so far, but perhaps where are the conservative or the cautious elements within that FY 2027 guide? I assume it sits within M&T again, given how we came through the fourth quarter. I assume there is levels of conservatism around Bankstown and redeploying those assets. Is that fair? Yeah. You pretty much hit the nail on the head there, Alan. Marine & Tourism, as we called out, had a bit of pretty soft final quarter of FY 2026, and what expectations are, that probably continues barring some material external shift. So that is probably the one area. Australian Bus, pretty comfortable where the margin got to, but we are expecting, as we call out in the presentation, some further growth in some of our key markets off the back of some announcements of government about investments into bus networks. The timing of that growth is a bit uncertain. The earlier that happens, the better for us, both in terms of the incremental margin from the growth services, but the change of the network gives us a chance to find efficiencies across the entire network. The more of the year we have got that to play with, the better. So the timing of those growth services does have a bit of an impact. In the U.S., as flagged in one of the earlier questions, we are a bit beholden to the EPCs, the prime contractors, in terms of the further ramp-up from our industrial contracts. How quickly they can employ their construction workforce really drives how quickly we get to the full complement of buses operating on those contracts. So, that is a bit uncertain, and some of the guidance range takes that into account in terms of that potentially taking a bit longer than we might expect. Super helpful. Thank you. Just one other one on corporate costs. Any color into the look forward on that, noting, 40-odd million AUD for the year. Are we thinking that 12 million AUD is expensed and on top of that, or what are the gives and takes for corporate, please? Yeah. So the AUD 12 million's on top of that, Alan. So that's below the line. Corporate costs will be pretty stable now at these sorts of levels. Helpful. Thank you. Thank you. Your next question comes from James Wilson with Macquarie. Please go ahead. Hi, guys. Thanks for taking my question. Just on the U.K., can you sort of speak to us about maybe the materiality, the earnings of the contract wins over there? Also any other U.K. opportunities that are on your immediate radar? Conscious you've just acquired a regional bus operator in the region. Yep. Thanks, James. Look, I think we announced the in the announcement of the Liverpool contracts, you can see the scale of them. From a group perspective, these initial contract wins are not material and are not going to move the dial. But what they do do is build credibility for the team. We are now, from what I understand, one of only three companies to have won one of the franchise contracts in regional U.K. So, making us one of those three as the market continues to go through the structural change and we continue to see the consolidation of the operators in regional U.K., into the various franchise networks. That is what we want to be part of. That is why that initial contract win was so important. We have got a seat at the table, both with the authority where we won those contracts in Liverpool, but also when we go to the other authorities around regional U.K. and have the ability to point to a contract win in Liverpool to give them confidence that we can do the job just as well and hopefully better than some of the big incumbent U.K. regional bus operators. That is the real benefit of the contracts that have been announced. As Andrew mentioned, we think we are in a good spot for further contract wins off the back of those contracts that were announced in Liverpool. In terms of other upcoming opportunities, we try to put it out in one of the slides to give a bit more color, but there is a significant wave of opportunities really over the next 6 months and certainly over the next 12 months, with at least 2,000 buses going through our franchise process. We are into tranche 2 of Liverpool, so the contracts that we were awarded were part of tranche 1. There is a separate tranche 2 in Liverpool, which is about 650 buses. In South Yorkshire and West Yorkshire, they have started their processes, and there is about 700 buses across Yorkshire. And then the Midlands and Wales would be the next ones off the bat, and there is another close to 1,000 buses across those two that are going to be in the market in the next 12 months. A very significant pipeline for us to participate in, and we think given our presence in those markets and incumbency's position, particularly in Liverpool and in Wales, we are in a good spot to continue to pick up more contracts. That's clear. Thank you. Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We'll now pause a moment to allow for any final questioners to register. Thank you. We are showing no further questions at this time, and that does conclude our conference for today. Thank you for participating. 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