Atlas Arteria maintains distribution guidance while French tax extended

The Atlas Arteria Group (ASX: ALX) share price is in focus today following an update on the French temporary supplemental tax, with the company reiterating its 2025 distribution guidance of 40 cents per security and confirming its target for future distributions.

What did Atlas Arteria report?

• The French Parliament has extended the temporary supplemental tax (TST) for toll road operators for an additional year.
• The tax will again be based on a percentage of average corporate income tax due for 2025 and 2026.
• A payment of 98% of the anticipated tax is due in December 2026, with the balance in May 2027.
• Atlas Arteria reaffirmed its 2025 distribution guidance of 40 cents per security, with a target of at least 40 cps for future periods.
• Guidance remains subject to ongoing business performance, taxes, exchange rates, and other events.

What else do investors need to know?

The Finance Law for 2026, which contains the TST extension, is expected to come into effect after review by the French Constitutional Council and signing by the President in the coming weeks. This development follows Atlas Arteria’s ongoing investments in toll roads across France, Germany, and the United States.

The company owns a significant stake in major French motorways, the Chicago Skyway, Dulles Greenway in Virginia, and the Warnow Tunnel in Germany. Management continues to back its distribution targets, aiming to provide stable and growing returns for investors, pending any material changes in tax or market conditions.

What did Atlas Arteria management say?

Chief Executive Officer of Atlas Arteria Hugh Wehby said:

We reiterate our 2025 distribution guidance of 40 cents per security and remain committed to delivering sustainable distributions supported by growing free cash flow.

What’s next for Atlas Arteria?

Atlas Arteria will continue to monitor developments regarding the French Finance Law and will update investors once the law is enacted. The business remains focused on maintaining free cash flow and supporting distributions, while navigating potential changes in tax and regulatory settings in its key markets.

Longer term, the company aims to reinforce its position as a leading toll road operator with disciplined management and sustainable business practices across its international portfolio.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Atlas Arteria maintains distribution guidance while French tax extended appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.