The Chorus Ltd (ASX: CNU) share price is in focus after the company delivered a solid full-year FY26 result, with revenue growing to $1,029 million and net profit after tax jumping to $37 million.
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What did Chorus Ltd report?
- Operating revenue rose 1.5% to $1,029 million
- EBITDA lifted 3% to $726 million
- Net profit after tax climbed to $37 million (FY25: $4 million)
- Operating expenses reduced 2% to $303 million
- Total FY26 dividend increased 4% to 60 cents per share (final dividend of 36 cents per share)
- Total fibre connections rose by 32,000 to 1,147,000, now 96% of all connections
What else do investors need to know?
Chorus continues to make strong progress transitioning to a simpler, all-fibre business. Fibre uptake reached 75.9% of serviceable addresses, edging closer to the company's 80% target by 2030. The decline in legacy copper connections accelerated, with only 44,000 remaining nationwide at year-end.
Chorus expanded its product range by launching new services such as Express Connect, Unified Transport, and TimeSync, aiming to support next-generation digital needs. The company has also increased its focus on digital inclusion, introducing the affordable Equity Fibre 100 broadband product for eligible low-income households.
What did Chorus Ltd management say?
Chief Executive Officer Mark Aue said:
FY26 marked the start of the second horizon of Chorus' strategy, extending through to FY29, focused on growth, simplicity and efficiency. We are building momentum towards a simpler, more focused business, while continuing to invest in the digital infrastructure New Zealand will rely on for decades.
What's next for Chorus Ltd?
Looking ahead to FY27, Chorus expects EBITDA between $730 million and $760 million, capital expenditure of $375 million to $415 million, and a minimum dividend of 62 cents per share (with partial imputation expected). The company plans to continue its copper network retirement, which is now scheduled to be completed by 2028.
Management sees ongoing demand growth for high-capacity, reliable, low-latency connectivity, driven by increasing adoption of artificial intelligence and data centre services. Chorus believes fibre is well-placed to support this demand and remains focused on disciplined investment, improving operational efficiency, and exploring new infrastructure opportunities.
Chorus share price snapshot
Over the past year, Chorus Ltd's share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a decline of almost 9%.
