Tabcorp FY26 half-year result: Earnings grow, dividends rise

The Tabcorp Holdings Ltd (ASX: TAH) share price is in focus after reporting group revenue of $1,344.9 million, up 1% on the prior period, and a 14.3% lift in EBITDA to $217.4 million for the half year ended 31 December 2025.

What did Tabcorp report?

• Group revenue: $1,344.9 million, up 1% on 1H25
• EBITDA (before significant items): $217.4 million, up 14.3%
• NPAT (before significant items): $35.7 million, up 61.5%
• Wagering & Media EBITDA: $181.4 million, up 15.8%
• Interim dividend: 1.5 cents per share (unfranked), up 50%
• Net debt as at 31 Dec 2025: $631.2 million; leverage ratio 1.5x

What else do investors need to know?

Tabcorp’s operating expenses decreased by 1.1%, reflecting ongoing cost discipline and efficiencies. The growth in earnings resulted in a 190 basis point improvement in EBITDA margin to 16.2%, delivering positive operating leverage over the period.

The company successfully completed a $300 million issue of five-and-a-half year Australian medium term notes, which improved funding diversity and extended average debt maturity to 5.4 years. Tabcorp says its balance sheet is healthy and positioned for growth.

Tabcorp also highlighted the execution of key strategic initiatives, including new retail and in-play product launches, and ongoing integration of its digital, retail, and media assets.

What did Tabcorp management say?

Managing Director & Chief Executive Officer Gillon McLachlan said:

Our 1H26 results highlight that we are a more consistent company, with greater capability… There’s more to do and we’re not where we want to be yet, but we have made significant progress in the first half, and we will remain relentless in executing on our strategy in the second half and beyond.

What’s next for Tabcorp?

Looking ahead, Tabcorp expects trading conditions in the second half of FY26 to be similar to the first. The focus remains on executing its strategy and further advancing omnichannel customer experiences.

The company will continue emphasising cost control to partly offset inflation. Additional spending of about $5 million is planned for promotion and marketing around the 2026 FIFA World Cup, and capital spending is expected between $120 million and $140 million in FY26. The interim dividend remains unfranked due to limited franking credits.

Tabcorp share price snapshot

Over the past 12 months, Tabcorp shares have risen 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over the same period.

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The post Tabcorp FY26 half-year result: Earnings grow, dividends rise 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.