Kelsian Group Ltd (ASX: KLS) shares have raced 9% higher during Tuesday afternoon trading to $4.22.
Investors were impressed with the strong first-half FY26 results that Kelsian released in the morning.
Kelsian delivered solid revenue growth and a sharp lift in profit. The transport business also announced the $161 million sale of its tourism portfolio to Journey Beyond.
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Global transport operator
Kelsian calls itself a leading global transport operator. The company runs bus, motorcoach, and marine services under long-term contracts with governments and private clients, delivering essential passenger transport every day.
All up, Kelsian runs more than 5,800 buses, 124 vessels, and 24 light rail vehicles across Australia, the UK, Singapore, the US, and the Channel Islands. In the past year, it powered 384 million passenger journeys.
Quality earnings story
For the 6 months to 31 December 2025, Kelsian saw its revenue rise by 10.6% to $1.186 billion. The statutory net profit after tax surged 61.6% to $32.4 million.
Underlying EBITDA climbed 16.4% to $153.8 million, and underlying EBIT jumped 26.5%, pointing to improving margins and tighter operational execution across the group.
This wasn't just a revenue story — it was a quality-of-earnings story. Kelsian shares generated stronger operating cash flow, strengthened its balance sheet, and kept leverage under control.
Kelsian Group CEO, Graeme Legh, was pleased that all three divisions contributed to the growth:
The result was driven by significant growth across key employee shuttle contracts in the USA, the ongoing contribution of the Bankstown Rail Replacement bus services in Sydney and strong trading from across the Marine & Tourism portfolio.
Sale Sealink and Captain Cook Cruises
In a strategic move, Kelsian announced the $161 million sale of its tourism portfolio to Journey Beyond.
The sale marks a clear step away from discretionary tourism and back toward Kelsian's core strength, contracted passenger transport. It will free up capital, reduce complexity, and double down on the more predictable, contracted side of the business.
Under the deal, Journey Beyond will acquire 100% of the shares in Sealink Fraser Island, Captain Cook Cruises, plus the assets of Adelaide Sightseeing, amongst others.
The transaction still needs the tick of approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board. If Kelsian clears those hurdles, it expects completion in the first half of FY27.
What next for Kelsian shares?
Encouragingly, management upgraded full-year EBITDA guidance, signalling confidence in second-half momentum.
Kelsian also rewarded shareholders with a dependable income, a fully-franked interim dividend of 8 cents per share. Kelsian will pay it on 20 April.
CMC Markets projections expect Kelsian shares to deliver a grossed-up dividend yield of 6.2% in FY26 and 6.9% in FY27, including franking credits.
