Company Reports

Transurban is a major toll road investor with concessions to operate motorways in Australia and North America. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban agreed to buy Canada Pension Plan Investment Board's stakes in the M7, NorthConnex and WestConnex for AUD 4.5 billion, subject to regulatory clearance. It also reached commercial close on Tennessee's I-24 southeast choice lanes.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North America. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban's fiscal 2026 adjusted EBITDA rose 8% to AUD 3.1 billion, helped by new assets and continued cost efficiencies. Distributions rose 6% to AUD 0.69 per security, marginally ahead of free cash flow growth, with fiscal 2027 guidance of AUD 0.72 per security. Shares traded flat on the day.

Australia's fuel reserves have remained steady in recent weeks, with imports continuing despite the ongoing closure of the Strait of Hormuz and relatively low starting stocks. As of May 19, Australia had 43 days of petrol supplies and 38 days of diesel, according to the Australian government.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North America. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Australia's refined fuel reserves are steadily falling as the Iran war takes a toll. Australia has about 35 days of petrol supply (down from 60 in late February) and is highly dependent on imported fuels. Some scheduled shipments have been canceled, as oil shortages affect export nations.

Transurban's first-half fiscal 2026 proportional EBITDA rose 6% to AUD 1.6 billion on 2.4% like-for-like traffic volume growth and solid toll uplifts. Distributions were AUD 34 cents per security, and full-year guidance for AUD 69 cps was reaffirmed, reflecting growth of 6% on the previous year.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Average daily trips across Transurban's portfolio increased by 2.7% in the September quarter from the same quarter last year, with North America and Melbourne particularly strong.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban's fiscal 2025 adjusted EBITDA increased 7% to AUD 2.85 billion on solid traffic volume growth and toll uplifts. Distributions rose 5% to AUD 0.65 per security, in line with free cash flows, and guidance is for distributions of AUD 0.69 in fiscal 2026.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Average daily traffic volumes across Transurban's portfolio rose 1.8% in the March quarter 2025, compared with the same quarter last year. Brisbane was the outlier, with traffic volumes down marginally because of ex-tropical Cyclone Alfred. In the nine months to March, traffic volumes were up 2.2%.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.

Transurban's first-half fiscal 2025 proportional operating EBITDA increased 9% to AUD 1.45 billion on 6% revenue growth and a 3% drop in operating costs. An interim dividend of AUD 0.32 per security was declared and full-year guidance of AUD 0.65 was reaffirmed, up 5% on last year.

Wide-moat-rated Transurban reported marginal growth in the September quarter, with groupwide traffic numbers up 1.1% on average on the same quarter last year. We slightly reduce our fiscal 2025 earnings forecasts, but the impact is immaterial to our fair value estimate, which is unchanged at AUD 12.80 per security. Transurban is fairly valued at current prices. We forecast a 4.7% revenue compound annual growth rate over the next five years, underpinned by completion of developments, mostly Consumer Price Index-linked toll increases and modest traffic volume growth.

Transurban is a major toll road investor with concessions to operate motorways in Australia and North American. Concessions grant the right to operate the roads and collect tolls for predetermined amounts of time. The core Australian roads are integral parts of the motorway networks in Australia's three largest cities: Melbourne, Sydney, and Brisbane. The roads benefit from strong competitive advantages, and the assets generate attractive returns on initial investment, warranting a wide economic moat rating.