Transurban posts higher 1H26 profit and revenue as key projects open

The Transurban Group (ASX: TCL) share price is in focus today after the toll road giant unveiled a 6% lift in proportional revenue to $2,019 million for the first half of FY26, alongside a statutory profit after tax of $343 million.

What did Transurban report?

• Proportional total revenue rose 6.0% to $2,019 million
• Statutory profit after tax of $343 million, swinging from a loss last year
• Proportional operating EBITDA up 6.4% to $1,545 million
• Average Daily Traffic (ADT) increased 2.5% to 2.6 million trips
• Distribution of 34.0 cents per stapled security for 1H26, 102.5% covered by free cash (ex. capital releases)
• Expected FY26 distribution of 69.0 cps, representing 6.2% growth on FY25

What else do investors need to know?

Transurban reported progress across all regions, with notable momentum in North America where traffic grew 3.6% and EBITDA jumped 22%. In Melbourne, the long-awaited West Gate Tunnel project opened, delivering faster routes for freight and easing local congestion.

The group remains committed to its investment pipeline, including ongoing upgrades in Sydney such as M7 widening works. Management highlighted a solid balance sheet, with $3 billion in liquidity, 88.6% of debt hedged and a weighted average debt maturity of 6.9 years.

Transurban continues to back sustainability. The group reported a 24% year-on-year reduction in Scope 1 and 2 emissions and achieved 91% renewable energy use.

What did Transurban management say?

Chief Executive Officer Michelle Jablko commented:

The 1H26 result reflects the accomplishment of key projects in North America and our home market of Melbourne, including the 495 Northern Extension and the opening of the West Gate Tunnel project. Traffic performed well in the first half, translating into EBITDA growth and a 6.3% increase in our 1H26 distribution.

What’s next for Transurban?

Looking ahead, the company reaffirmed its FY26 distribution guidance of 69 cents per security, targeting 6.2% growth from FY25. This is subject to traffic patterns and broader economic factors.

Management says the business is well positioned for future growth, with new travel infrastructure set to open in Sydney soon and plans to continue pursuing enhancement projects both in Australia and North America.

Transurban share price snapshot

Over the past 12 months, Transurban shares have risen 8%, slightly beating the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

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The post Transurban posts higher 1H26 profit and revenue as key projects open 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 positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. 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.