Transurban share price flounders despite record full-year revenues

The toll road developer and operator reported its 2023 financial year results this morning.

| More on:
A man holds his hands to the sides of his face and pulls it down in despair as he sits at the wheel of a car that is not moving, as though in a traffic jam.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Transurban Group (ASX: TCL) share price is down 1.86% in early trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) toll road developer and operator closed yesterday trading for $13.96. In morning trade on Wednesday, shares are swapping hands for $13.70 apiece.

For some context, the ASX 200 is down 1.47% at this same time.

The slide follows the release of the company's 2023 financial year results (FY23).

Read on for the highlights.

Transurban share price slides despite record traffic

What else happened during the year?

The Transurban share price isn't getting a boost today despite the company reporting Average Daily Traffic (ADT) reached new record volumes, in excess of 2.4 million trips.

Transurban said strong traffic volumes were supported by year-on-year growth in all of its markets. The ASX 200 toll road developer noted that "resilient large vehicle and weekend travel" increased 20% from FY22 levels.

The company's record proportional toll revenue was fuelled by inflation-linked escalations worked into its business model.

Traffic growth supported the record EBITDA for FY23. And the EBITDA margin improved from 69% in FY22 to 71% in FY23.

As for the balance sheet, Transurban had approximately $4 billion in corporate liquidity as at 30 June.

The company also continued delivery of its existing growth projects, while maintaining a strong opportunity pipeline.

Among other projects, FY23 saw Transurban deliver the M4-M8 link in Sydney on budget and ahead of schedule.

And in a shakeup at the top, Michelle Jablko has been appointed as Transurban's new CEO, commencing on 19 October.

What did management say?

Commenting on the results that have yet to lift the Transurban share price, outgoing CEO Scott Charlton said:

We've seen strong traffic growth in all markets, resulting in a Transurban Group record of 2.4 million average trips a day for the year. Traffic performance underpinned the record EBITDA result of $2.4 billion, an increase of almost 30% on the prior year…

We have a strong liquidity position that supports our growth ambition and our long-term approach to managing the balance sheet has paid off with our weighted average cost of debt broadly stable for the year. Going forward, we have a weighted average debt maturity of approximately seven years, with 96% of our debt fully hedged for interest rates.

What's next?

Looking to what could impact the Transurban share price in the months ahead, investors may be pleased with the forecast of 62 cents per share in FY24 full-year dividends. That would be up 7% from the record dividend payout delivered this year.

With an eye on the FY24, Charlton said:

With positive traffic growth across our key markets, embedded escalation at or above inflation on the majority of revenue and the continued progress on key growth projects, we are well-placed to grow distributions and deliver long term value.

Transurban share price snapshot

The Transurban share price has been a strong performer in 2023.

With today's intraday fall factored in, shares in the ASX 200 toll road company are up 8% year to date.

Motley Fool contributor Bernd Struben 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 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.

More on Earnings Results

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Here's why this ASX 200 healthcare stock is roaring 13% higher on Wednesday

This healthcare company is outperforming every other stock within the ASX 200 today.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Consumer Staples & Discretionary Shares

Guess which ASX 200 stock jumped 10% after posting strong half-year results

This ASX 200 delivered a finger lickin' good result.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Technology Shares

Nvidia shares in focus after Q3 earnings smash expectations thanks to AI boom

This tech giant is growing at a spectacular rate thanks to artificial intelligence.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Earnings Results

Webjet shares sink despite 120% half-year profit boost

This travel company delivered stunning growth during the first half. But it wasn't enough for some.

Read more »

A young woman with her mouth open and her hands out showing surprise and delight as uranium share prices skyrocket
Earnings Results

Guess which ASX 200 tech stock is rising after beating guidance and upgrading targets

TechnologyOne has beaten its guidance and brought forward its medium term targets.

Read more »

Man holding out $50 and $100 notes in his hands, symbolising ex dividend.
Earnings Results

Guess which ASX 200 stock is rising after announcing a special dividend with its FY23 results

Earnings are down but a special dividend is coming for shareholders.

Read more »

A boy is about to rocket from a copper-coloured field of hay into the sky.
Earnings Results

This ASX 200 stock just ripped 11% higher. Here's why

Investors are bidding up the ASX 200 stock following the release of its FY 2023 results.

Read more »

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.
Earnings Results

ASX 200 stock surges 11% on mega revenue gains

This ASX 200 tech company has just released its 3Q FY23 update... and the market likes it.

Read more »