Transurban Signals 4.3% Growth in FY27 Dividend After Annual Profit Jumps

By David Winning

SYDNEY--Toll road owner Transurban said its annual net profit more than doubled despite higher fuel prices slowing traffic growth as the U.S. and Iran trade blows in the Middle East.

Transurban reported a net profit attributable to securityholders of 366 million Australian dollars (US$258.5 million) in the 12 months through June, up from A$133 million in the 2025 fiscal year.

Proportional toll revenue--the company's preferred measure of the performance of its roads--increased by 6.7% to A$3.98 billion across the year. Proportional earnings before interest, tax, depreciation and amortization--or Ebitda--rose by 16% to A$3.11 billion.

Transurban is typically viewed as one of the most defensive stocks on the Australian Securities Exchange because its concession arrangements are structured in a way that they have built-in inflation protection, with more than 90% of revenue linked to CPI or subject to fixed escalators.

The company's vulnerability is in traffic movements, which are sensitive to movements in fuel prices and changes in government policy. That was on show during its fiscal second half when hostilities in the Middle East drove up fuel prices, scrambling motorists' behavior and restraining traffic growth in major cities where it owns toll roads. Higher interest rates as Australia's central bank sought to rein in inflation posed an additional burden on drivers' budgets.

Transurban said average daily traffic rose by 2.2% across the year, representing a slowdown on the 2.5% growth achieved in its fiscal first half.

The muted growth rate came despite the opening of the West Gate Tunnel Project in Melbourne in December. While Transurban expects the tunnel to be well used by freight haulers, its performance has underwhelmed market expectations so far. Transurban this month told investors the ramp-up profile of the tunnel, which connects the West Gate Freeway to the Port of Melbourne, has been flat since February.

"Our assets are holding up relatively well, with overall traffic growing 2.2% to 2.6 million daily trips per day, and commercial traffic grew by 6.6%, notwithstanding concerns around fuel security in March and April," said Chief Executive Michelle Jablko.

Still, the company remains one of the benchmark index's most reliable dividend payers. Transurban on Thursday said it expects a distribution of A$0.72 per security in the new fiscal year, up around 4.3% on the payout of A$0.69/security in fiscal 2026.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

August 12, 2026 18:23 ET (22:23 GMT)