The Aussie Broadband Ltd (ASX: ABB) share price is in focus after the company delivered a 19.6% jump in underlying EBITDA, reaching $165.3 million, and grew revenue by 9.2% to $1,295.4 million for FY26.
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What did Aussie Broadband report?
- Underlying EBITDA of $165.3 million, up 19.6% on last year
- Revenue rose 9.2% to $1,295.4 million
- On-net broadband connections surpassed 1.11 million, up 41%
- Operating cash flow increased 42.5% to $167.2 million
- Fully franked final dividend of 3.6 cents per share, total FY26 dividend 6.0 cents (up 50%)
- Underlying NPAT rose 41.8% to $52.4 million
What else do investors need to know?
Aussie Broadband repositioned its portfolio with several strategic moves, including completing the acquisition of AGL Telco and Nexgen, and finalising the migration of More and Tangerine connections. These deals have expanded the company's customer base and capabilities, strengthening its platform for future growth.
The company also completed divestments of Buddy Telco and Digital Sense, sharpening its focus on core telecommunications services. Its net leverage ratio fell to 0.9x, providing flexibility for ongoing investment or acquisitions. Aussie Broadband has also launched a share buyback of up to $115 million, highlighting confidence in its financial position.
Growth in mobile services continued, with a 22% boost in mobile connections and the launch of new features like international roaming and eSIM. The outlook remains positive, as the company maintained customer retention despite intense competition and recent price increases.
What did Aussie Broadband management say?
Group CEO Brian Maher said:
FY26 was a defining year for Aussie Broadband. Our premium telco offering continued to attract customers and partners, delivering organic connections growth, strategic customer wins and strong financial performance despite a competitive market backdrop. We grew revenue while improving operating leverage, resulting in EBITDA margin expansion and accelerated earnings growth… The migration of More and Tangerine connections and the acquisitions of AGL Telco and Nexgen have increased our scale, broadened our customer base and enhanced our ability to meet the evolving needs of customers across all segments.
What's next for Aussie Broadband?
Looking ahead, Aussie Broadband expects to deliver underlying EBITDA between $205 million and $215 million in FY27—growth of 24% to 30%. The company's focus now moves from acquisitions to unlocking benefits from its enhanced scale and broader customer acquisition channels.
Continued momentum is anticipated, with the migration of AGL Telco services on track to complete in the second quarter of FY27. Capex for FY27 is forecast between $60 million and $65 million, as the company invests to support future organic and inorganic growth.
Aussie Broadband share price snapshot
Over the past 12 months, Aussie Broadband shares have declined 6%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.
