Aussie Broadband Ltd (ASX:ABB) (H1 2026) Earnings Call Highlights: Strong Growth and Strategic …

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Mon, February 23, 2026 at 2:00 PM GMT+9 4 min read

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**Revenue:** Increased by 8.4% to $637.8 million.

**Underlying EBITDA:** Up 13.5% to $74.7 million.

**Underlying NPAT:** Increased by 24.5% to $31.3 million.

**Earnings Per Share (EPS):** Rose by 26.5% to $0.07.

**Operating Cash Flow:** Up 16% to $57.1 million.

**Gross Margin:** 36.3%, consistent with the previous half.

**Dividend:** Fully franked interim ordinary dividend of $0.04 per share, up 50% from the previous year.

**Broadband Connections:** Grew by 39,000 to 828,000.

**Mobile Services:** Increased by 24,000 to 240,000.

**Net Debt:** Increased to $139.2 million, with a net leverage ratio of 0.9 times.

**CapEx:** $27 million, in line with guidance.

**Residential Revenue Growth:** 14.7% increase.

**Wholesale Revenue Growth:** Up by 12.5%.

**Business, Enterprise, and Government Revenue Growth:** 10.8% increase.

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Release Date: February 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Aussie Broadband Ltd (ASX:ABB) reported double-digit growth across all segments, with underlying EBITDA up 13.5% and revenue growth of 8.4% to $637.8 million.

The company declared a fully franked interim ordinary dividend of $0.04 per share, up 50% from the previous year.

Aussie Broadband Ltd (ASX:ABB) continues to lead in high-speed broadband, with 69% of connections on speeds of 100 megabits or higher and a 43% market share in 2GB plans.

The successful launch of the enhanced nitrogen platform is set to enable large-scale migrations, providing a material lift to earnings from FY27.

The acquisition of AGL Telco and NextGen is expected to significantly increase connections and earnings, with AGL Telco alone adding $235 million in revenue and $21 million in underlying EBITDA in the first 12 months post-migration.

Negative Points

The company faces competitive pressures in the market, with pricing strategies from competitors potentially impacting margins.

There is a negative EBITDA impact of approximately $2 million in FY26 from the divestment of the cloud business, Digital Sense Hosting.

The company's net debt position increased from $101.2 million to $139.2 million, partly due to share buybacks and special dividends.

Aussie Broadband Ltd (ASX:ABB) has decided to refine its fiber strategy, focusing on less capital-intensive on-net buildings, which may limit future expansion opportunities.

The sale of Digital Sense Hosting resulted in a one-off non-cash impairment to goodwill of $14.8 million, reflecting challenges in the cloud market for smaller players.

 






Story Continues  

Q & A Highlights

Q: Can you explain the margin expectations for the second half of FY26, given the guidance provided? A: Andy Knopp, CFO: We have positive momentum on connections and are holding our margins better than expected. Productivity improvements are a key driver, and we are optimistic about the opportunities in the business, enterprise, government, and wholesale segments.

Q: Regarding the residential business, is the current growth rate sustainable, and what are the prospects for acceleration? A: Brian Maher, CEO: The start of the calendar year has been positive, and we don’t foresee a slowdown. Opportunities with NBN’s fiber initiatives are promising, and we are optimistic about continued growth.

Q: How is the competitive market affecting your pricing strategy and margins in the residential segment? A: Brian Maher, CEO: We participate in promotional activities but not to the same extent as others. We maintain growth while protecting margins, and we are comfortable with our current position.

Q: What is the impact of the digital sense sale on EBITD, and what are the long-term prospects for the cloud business? A: Brian Maher, CEO: The $2 million impact reflects lost earnings. The cloud business faced challenges due to industry dynamics, and margins would have diminished over time. We are satisfied with the divestment outcome.

Q: Can you achieve the FY28 EPS growth ambition organically, or will acquisitions be necessary? A: Brian Maher, CEO: There are multiple paths to achieving the goal, including organic growth and potential acquisitions. We are not ruling out acquisitions, but organic growth is also a viable path.

Q: How do you view the subscriber growth trajectory, and what are the key risks? A: Brian Maher, CEO: We are comfortable with our current growth trajectory. Risks include churn and the competitive environment, but we are optimistic about continued strong organic growth.

Q: What are the strategic drivers behind offering promotional pricing during the January-February period? A: Jonathan Prosser, Group Executive, Residential: We have been experimenting with promotions during this period for three years. It aligns with major retail events and helps us gain incremental volume.

Q: Can you provide insights into the efficiencies being realized and the potential for further improvements? A: Brian Maher, CEO: We are close to optimizing current systems but see potential in re-platforming to deliver back-office efficiencies. We have increased our EBITDA margin goal by 1% for FY28, reflecting expected improvements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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