The Transurban Group (ASX: TCL) share price has jumped higher today following yesterday's release of the company's FY25 results.
At the time of writing in lunchtime trading, Transurban's share price is 2.41% higher and changing hands at $14.645 a piece.
Since the ASX closed on Tuesday, ahead of yesterday morning's announcement, the share price has risen 4.6%.
For the year, the share price is 8.56% higher.
For context, the S&P/ASX 100 Index (ASX: XTO) is 0.92% higher today and 12.18% higher than this time last year.
What did Transurban post in its FY25 results?
The company reported a robust FY25 result. Its toll revenue was 5.6% higher year-on-year at $3,732 million, underpinned by a 2.2% increase in traffic across the group.
The company's earnings before depreciation, amortisation, net finance costs and income tax (EBITDA) were 1% higher, and its operating EBITDA increased by 7.4% over the year.
The jump in EBITDA was supported by a 140-basis-point margin expansion, as operating costs remained flat at $947 million.
The group also saw an increase in free cash flow, which was up 7.6%, enabling distributions of $2.02 billion to security holders.
The company declared a fully franked final dividend of 33 cents per share, bringing the full-year payout to 65 cents with free cash overage of 99.5%. The FY25 dividend total is 4.8% higher than FY24 and in line with guidance. The dividend record date is 20 June, and payment is scheduled for 22 August.
For FY26, Transburban said it expects total dividends of 69 cents per share, which represents a 6% growth on FY25. Expected free cash coverage is 95-100%. Distribution guidance is subject to traffic performance and macroeconomic factors.
"FY25 was a strong year, marked by continued progress on key strategic focus areas. Traffic was up across all markets, and we outperformed on our cost guidance, translating to a 7% increase in Free Cash for the year. The focus on operational efficiencies is designed to allow Transurban to be a more agile and effective business that can better drive value for stakeholders," Transurban CEO Michelle Jablko said.
Analysts outlook on the ASX 100 company
Analysts are mostly neutral on Transurban shares, although there has been no update since the announcement.
According to TradingView data, 10 out of 14 analysts have a neutral rating on the ASX 100 stock. The maximum target price over the next 12 months is as high as $16.10, which represents a 9.94% upside for investors from the share price at the time of writing.
