The Transurban Group (ASX: TCL) share price is edging lower today.
Shares in the S&P/ASX 200 Index (ASX: XJO) toll road developer and operator closed yesterday trading for $12.88. In morning trade on Thursday, shares are swapping hands for $12.78 apiece, down 0.74%.
For some context, the ASX 200 is also down 0.56% at this same time.
This follows the release of Transurban's full-year FY 2024 results.
Here are the highlights.
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Transurban share price wobbles on results
- Proportional earnings before interest, taxes, depreciation and amortisation (EBITDA) of $2.63 billion, up 7.5% from FY 2023
- Average Daily Traffic (ADT) up 1.7% year on year
- Nominal cost growth of 3.6% came in below inflation
- FY 2024 dividend payout of 62 cents per share unfranked, up 7% from FY 2023
What else happened in FY 2024?
Management noted that the 7.5% year-on-year earnings increase that has yet to lift the Transurban share price today was supported by a proportional toll revenue increase of 6.7% to $3.54 billion.
EBITDA margins also improved from 72.4% in FY 2023 to 73.1% in FY 2024.
The 1.7% boost in ADT was driven by growth in all regions the company operates in, along with the opening of new assets.
Transurban's 7% full-year dividend increase was in line with prior guidance. The full-year dividend payout is 102% covered by free cash of 63.2 cents per share.
The past financial year also saw the company continue to deliver on a range of existing development projects. Those include the West Gate Tunnel Project in Melbourne, which is on track to be completed by the end of the calendar year 2025. Meanwhile, the Logan West upgrade project in Brisbane has progressed to the binding upgrade proposal stage.
On the balance sheet, Transurban ended FY 2024 with approximately $4.2 billion in corporate liquidity.
What did management say?
Commenting on the full-year results moving the Transurban share price today, CEO Michelle Jablko said, "We are committed to working with the NSW Government on potential toll reform, to explore solutions to improve customer outcomes while protecting the $36 billion investment made by Transurban and its partners in Sydney over the past two decades."
Jablko added:
We continue to work closely with our government partners across our markets to deliver existing development projects, including successfully opening the West Gate Tunnel Project in Victoria, expected by the end of 2025.
We are focused on growing value for customers through our rewards program and currently have more than one million Linkt Rewards members, which is up five times over the past year.
As for the Logan West upgrade project, she said, "Last month, we were pleased to announce our partnership with the Queensland Government to develop plans for widening the western section of the Logan Motorway."
Now what?
Looking at what might impact the Transurban share price in the year ahead, the company provided FY 2025 dividend guidance of 65 cents per share.
That would represent a 4.8% increase from the FY 2024 dividends.
Management cautioned that distribution guidance was "subject to traffic performance and macroeconomic factors".
Transurban share price snapshot
With today's intraday moves factored in, the Transurban share price is down 8% over 12 months.
