Q4 2026 Kelsian Group Ltd Earnings Call

August 25, 2026

Speaker #1: Thank you for standing by, and welcome to the Kelsian Group Q4 2026 results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session.

Operator: Thank you for standing by, and welcome to the Kelsian Group FY26 results briefing. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Graeme Legh, Group CEO. Please go ahead.

Speaker #1: If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Mr. Graham Lee, Group CEO.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Mel, and good morning, everyone. Welcome to Kelsian Group Limited's full-year results presentation for the twelve months ended 30 June 2026. I'm Graham Lee, Kelsian Group CEO, and I'm joined this morning by Andrew Muir, Kelsian's Group CFO.

Graeme Legh: Thank you, Mel, and good morning, everyone, and welcome to Kelsian Group Limited's full year results presentation for the 12 months ended 30 June 2026. I am Graeme Legh, Kelsian Group CEO, and I am joined this morning by Andrew Muir, Kelsian's Group CFO. Today I will begin with an overview of the group's record results for FY26 and the key strategic, operational, and sustainability achievements that have been delivered during the year. Andrew will take you through the detailed group financial performance and the results from each of our operating divisions. I will then discuss the outlook for FY27 and provide details of our growth pipeline and priorities. FY26 was an important year for Kelsian. We delivered another record result, strengthened the balance sheet, advanced the streamlining of our operating portfolio, continued the disciplined execution of our growth priorities, and positioned our operations to capitalize on the growth pipeline across our markets.

Speaker #2: Today I'll begin with an overview of the Group's record results for Q1, Q2, and the key strategic, operational, and sustainability achievements that have been delivered during the year.

Speaker #2: Andrew will take you through the detailed group financial performance and the results from each of our operating divisions. I'll then discuss the outlook for Q1 and Q2, and provide details of our growth pipeline and priorities.

Speaker #2: Q1, Q2 was an important year for Kelsian. We delivered another record result, strengthened the balance sheet, advanced the streamlining of our operating portfolio, continued the disciplined execution of our growth priorities, and positioned our operations to capitalize on the growth pipeline across our markets.

Graeme Legh: We delivered another record result, strengthened the balance sheet, advanced the streamlining of our operating portfolio, continued the disciplined execution of our growth priorities, and positioned our operations to capitalize on the growth pipeline across our markets. Before turning to the FY26 result, I want to provide an overview of the Kelsian Group's global operations and the key characteristics of our business, which are set out on slide three. Kelsian is a leading multimodal transport operator connecting people and places across Australia, the United States, Singapore, the United Kingdom, and the Channel Islands. To give you a sense of our operating scale, at 30 June, we employed 13,300 people and operated more than 6,300 buses and 120 vessels from more than 100 operating locations. Over the year, our services delivered 384 million essential customer journeys.

Speaker #2: Before turning to the Q1 and Q2 results, I want to provide an overview of the Kelsian Group's global operations and the key characteristics of our business, which are set out on slide 3.

Graeme Legh: Before turning to the FY26 result, I want to provide an overview of the Kelsian Group's global operations and the key characteristics of our business, which are set out on slide three. Kelsian is a leading multimodal transport operator connecting people and places across Australia, the United States, Singapore, the United Kingdom, and the Channel Islands. To give you a sense of our operating scale, at 30 June, we employed 13,300 people and operated more than 6,300 buses and 120 vessels from more than 100 operating locations. Over the year, our services delivered 384 million essential customer journeys. In Australia, we are the largest multimodal bus and ferry operator, with significant contracted bus operations across all mainland capital cities and a portfolio of contracted marine services. In the US, we are the second-largest motor coach operator, with operations spanning seven states across the south and southwest of the country.

Speaker #2: Kelsian is a leading multimodal transport operator, connecting people and places across Australia, the United States, Singapore, the United Kingdom, and the Channel Islands. To give you a sense of our operating scale, at 30 June we employed 13,300 people and operated more than 6,300 buses and 120 vessels across more than 100 operating locations.

Speaker #2: Over the year, our services delivered 384 million essential customer journeys. In Australia, we're the largest multimodal bus and ferry operator, with significant contracted bus operations across all mainland capital cities and a portfolio of contracted marine services.

Graeme Legh: In Australia, we are the largest multimodal bus and ferry operator, with significant contracted bus operations across all mainland capital cities and a portfolio of contracted marine services. In the US, we are the second-largest motor coach operator, with operations spanning seven states across the south and southwest of the country. In Singapore, we are the third-largest public transport bus operator, and in the UK, we have an established operating platform bringing bus franchising expertise to the regional UK bus market. A key feature of the portfolio is the quality of the revenue base. More than 90% of group revenue is contracted or non-discretionary in nature, primarily backed by governments and high-quality corporate customers.

Speaker #2: In the U.S., we are the second largest motor coach operator, with operations spanning seven states across the South and Southwest of the country. In Singapore, we're the third largest public transport bus operator, and in the U.K., we have an established operating platform, bringing bus franchising expertise to the regional U.K. bus market.

Graeme Legh: In Singapore, we are the third-largest public transport bus operator, and in the UK, we have an established operating platform bringing bus franchising expertise to the regional UK bus market. A key feature of the portfolio is the quality of the revenue base. More than 90% of group revenue is contracted or non-discretionary in nature, primarily backed by governments and high-quality corporate customers. The combination of our proven operational capabilities, our scale, long-term customer relationships, and predictable resilient revenues provides a strong platform for our disciplined growth into the future. Turning to slide five. I am very pleased to today report another record result for Kelsian. Group revenue increased by 8.8% in FY26 to AUD 2.403 billion, with growth across all geographies.

Speaker #2: A key feature of the portfolio is the quality of the revenue base. More than 90% of group revenue is contracted or non-discretionary in nature, primarily backed by government and high-quality corporate customers.

Speaker #2: The combination of our proven operational capabilities, our scale, long-term customer relationships, and predictable, resilient revenues provides a strong platform for our disciplined growth into the future.

Graeme Legh: The combination of our proven operational capabilities, our scale, long-term customer relationships, and predictable resilient revenues provides a strong platform for our disciplined growth into the future. Turning to slide five. I am very pleased to today report another record result for Kelsian. Group revenue increased by 8.8% in FY26 to AUD 2.403 billion, with growth across all geographies. Underlying EBITDA increased by 10.8% to AUD 315.8 million, which, after adjusting for the delayed Kangaroo Island mobilization costs, is at the top end of our updated FY26 EBITDA guidance range of between AUD 303 and AUD 312 million. Underlying EBIT was up 14.5% to AUD 155.7 million, and underlying net profit after tax and before amortization was up 17.2% to AUD 111.1 million. The results demonstrate the resilience of our business model.

Speaker #2: Turning to slide 5, I'm very pleased today to report another record result for Kelsian. Group revenue increased by 8.8% in Q1 and Q2 to $2.403 billion, with growth across all geographies.

Speaker #2: Underlying EBITDA increased by 10.8% to $315.8 million, which, after adjusting for the delayed Kangaroo Island mobilization costs, is at the top end of our updated Q1, Q2 EBITDA guidance range of between $303 million and $312 million.

Graeme Legh: Underlying EBITDA increased by 10.8% to AUD 315.8 million, which, after adjusting for the delayed Kangaroo Island mobilization costs, is at the top end of our updated FY26 EBITDA guidance range of between AUD 303 and AUD 312 million. Underlying EBIT was up 14.5% to AUD 155.7 million, and underlying net profit after tax and before amortization was up 17.2% to AUD 111.1 million. The results demonstrate the resilience of our business model. The majority of FY26 revenue was contracted, and contractual indexation mechanisms provided important protection against inflationary pressures and the significant volatility in fuel prices witnessed in the H2 of the period.

Speaker #2: Underlying EBIT was up 14.5% to $155.7 million, and underlying net profit after tax and before amortization was up 17.2% to $111.1 million. The result demonstrates the resilience of our business model.

Speaker #2: The majority of Q1 and Q2 revenue was contracted, and contractual indexation mechanisms provided important protection against inflationary pressures and the significant volatility in fuel prices witnessed in the second half of the period.

Graeme Legh: The majority of FY26 revenue was contracted, and contractual indexation mechanisms provided important protection against inflationary pressures and the significant volatility in fuel prices witnessed in the H2 of the period. Growth was supported by both new contract wins and existing contract growth, including from employee shuttle service contracts in the United States, the full-year contribution from the Bankstown Rail Replacement bus services, increased service levels and contract indexation from our bus public transport contracts, and improved performance in Marine & Tourism. Importantly, the earnings result again translated into strong cash generation and a stronger balance sheet. Net operating cash flow was AUD 220.1 million, up 7.3%, and leverage reduced to 2.46 times, meaning we are now within our target leverage range of between 2 to 2.5 times underlying EBITDA.

Speaker #2: Growth was supported by both new contract wins and existing contract growth, including from employee shuttle service contracts in the United States, the full-year contribution from the Bankstown Rail Replacement Bus Services, increased service levels and contract indexation from our bus public transport contracts, and improved performance in marine and tourism.

Graeme Legh: Growth was supported by both new contract wins and existing contract growth, including from employee shuttle service contracts in the United States, the full-year contribution from the Bankstown Rail Replacement bus services, increased service levels and contract indexation from our bus public transport contracts, and improved performance in Marine & Tourism. Importantly, the earnings result again translated into strong cash generation and a stronger balance sheet. Net operating cash flow was AUD 220.1 million, up 7.3%, and leverage reduced to 2.46 times, meaning we are now within our target leverage range of between 2 to 2.5 times underlying EBITDA. Over the three-year period to June 2026, underlying EBITDA has grown at a compound annual rate of approximately 25%. After one-off costs associated with acquisitions, the tourism portfolio divestment, and the implementation of the new group finance system, statutory net profit after tax was AUD 53.5 million, up 16.6%. Moving to slide 6.

Speaker #2: Importantly, the earnings result again translated into strong cash generation and a stronger balance sheet. Net operating cash flow was $220.1 million, up 7.3%, and leverage reduced to 2.46 times.

Speaker #2: Meaning we are now within our target leverage range of between 2 to 2.5 times underlying EBITDA. Over the three-year period to June 2026, underlying EBITDA has grown at a compound annual rate of approximately 25%.

Graeme Legh: Over the three-year period to June 2026, underlying EBITDA has grown at a compound annual rate of approximately 25%. After one-off costs associated with acquisitions, the tourism portfolio divestment, and the implementation of the new group finance system, statutory net profit after tax was AUD 53.5 million, up 16.6%. Moving to slide 6. FY26 was a year of strong operational execution and meaningful strategic progress. Operationally, the United States continued to perform strongly with the ramp-up of new and existing industrial contracts, solid growth in corporate and technology employee transport services, and a pleasing charter contribution. In Australia, operating performance of our key urban public transport contracts improved as service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable.

Speaker #2: After one-off costs associated with acquisitions, the tourism portfolio divestment, and the implementation of the new group finance system, statutory net profit after tax was $63.5 million, up 16.6%.

Speaker #2: Moving to slide 6, Q1 and Q2 were a year of strong operational execution and meaningful strategic progress. Operationally, the United States continued to perform strongly, with the ramp-up of new and existing industrial contracts, solid growth in corporate and technology employee transport services, and a pleasing charter contribution.

Graeme Legh: FY26 was a year of strong operational execution and meaningful strategic progress. Operationally, the United States continued to perform strongly with the ramp-up of new and existing industrial contracts, solid growth in corporate and technology employee transport services, and a pleasing charter contribution. In Australia, operating performance of our key urban public transport contracts improved as service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable. These initiatives helped offset the higher repairs and maintenance costs associated with operating older diesel vehicles. The mobilization of the new Kangaroo Island ferry contract has been delayed, with commencement now scheduled for October 2026. Approximately AUD 3.5 million of mobilization costs for this new service were not incurred in FY26 and will now be incurred in FY27.

Speaker #2: In Australia, the operating performance of our key urban public transport contracts improved as service changes were implemented, and the impact of depot electrification and government fleet replacement delays became more manageable.

Speaker #2: These initiatives helped offset the higher repairs and maintenance costs associated with operating older diesel vehicles. The mobilization of the new Kangaroo Island ferry contract has been delayed, with commencement now scheduled for October 2026.

Graeme Legh: These initiatives helped offset the higher repairs and maintenance costs associated with operating older diesel vehicles. The mobilization of the new Kangaroo Island ferry contract has been delayed, with commencement now scheduled for October 2026. Approximately AUD 3.5 million of mobilization costs for this new service were not incurred in FY26 and will now be incurred in FY27. In Australian bus, we signed a two-year extension of our Sydney Region 6 bus contract from 1 July 2026 on improved terms, and successfully commenced the Ipswich and Logan services in Queensland. Both provide us with a stronger operating platform as we enter FY27. In the United Kingdom, the award of Liverpool bus contracts commencing in January 2027 validated our strategy of establishing an operating presence ahead of regional UK bus franchising.

Speaker #2: Approximately $3.5 million of mobilization costs for this new service were not incurred in Q1 and Q2, and will now be incurred in Q1 and Q2. In Australian Bus, we signed a two-year extension of our Sydney Region 6 bus contract from 1 July 2026 on improved terms, and successfully commenced the Ipswich and Logan services in Queensland.

Graeme Legh: In Australian bus, we signed a two-year extension of our Sydney Region 6 bus contract from 1 July 2026 on improved terms, and successfully commenced the Ipswich and Logan services in Queensland. Both provide us with a stronger operating platform as we enter FY27. In the United Kingdom, the award of Liverpool bus contracts commencing in January 2027 validated our strategy of establishing an operating presence ahead of regional UK bus franchising. We also acquired South Wales Transport, positioning Kelsian for the pipeline of franchise opportunities expected across Wales. In July, we were awarded new long-term ferry contracts in Auckland and entered into an agreement to acquire Belaire Ferries, establishing a strategic platform for further growth in New Zealand. Across the group, our focus remains on operational excellence, disciplined capital management, and growth that meets our capital management and allocation framework return skills.

Speaker #2: Both provide us with a stronger operating platform as we enter Q1 and Q2. In the United Kingdom, the award of Liverpool bus contracts commencing in January 2027 validated our strategy of establishing an operating presence ahead of regional UK bus franchising.

Speaker #2: We also acquired South Wales Transport, positioning Kelsian for the pipeline of franchise opportunities expected across Wales. In July, we were awarded new long-term ferry contracts in Auckland and entered into an agreement to acquire Bel Air Ferries.

Graeme Legh: We also acquired South Wales Transport, positioning Kelsian for the pipeline of franchise opportunities expected across Wales. In July, we were awarded new long-term ferry contracts in Auckland and entered into an agreement to acquire Belaire Ferries, establishing a strategic platform for further growth in New Zealand. Across the group, our focus remains on operational excellence, disciplined capital management, and growth that meets our capital management and allocation framework return skills. Alongside the FY26 results, today we have also released an update on the proposed tourism portfolio divestment from within our SeaLink Marine & Tourism division. In February, we announced that Journey Beyond had agreed to acquire the identified tourism portfolio operations for total cash consideration of AUD 161 million. The transaction was subject to ACCC and FIRB approvals and other customary conditions.

Speaker #2: Establishing a strategic platform for further growth in New Zealand. Across the group, our focus remains on operational excellence, disciplined capital management, and growth that meets our capital management and allocation framework return.

Speaker #2: Alongside the Q1 and Q2 results, today we've also released an update on the proposed tourism portfolio divestment from within our SeaLink Marine and Tourism division.

Graeme Legh: Alongside the FY26 results, today we have also released an update on the proposed tourism portfolio divestment from within our SeaLink Marine & Tourism division. In February, we announced that Journey Beyond had agreed to acquire the identified tourism portfolio operations for total cash consideration of AUD 161 million. The transaction was subject to ACCC and FIRB approvals and other customary conditions. Since the announcement in February, the ACCC has been assessing the potential divestment of two transactions, the main tourism portfolio, and separately, the SeaLink operations to Rottnest Island in WA. Kelsian and Journey Beyond have agreed that SeaLink Rottnest will no longer form part of the tourism portfolio. Having removed SeaLink Rottnest from the transaction perimeter, we are confident we have a compelling case for ACCC approval of the remaining tourism transaction.

Speaker #2: In February, we announced that Journey Beyond had agreed to acquire the identified tourism portfolio operations for a total cash consideration of $161 million. The transaction was subject to ACCC and FIRB approvals, and other customary conditions.

Speaker #2: Since the announcement in February, the HCC has been assessing the potential divestment as two transactions: the main tourism portfolio, and separately, the ceiling operations to Rottnest Island in WA.

Graeme Legh: Since the announcement in February, the ACCC has been assessing the potential divestment of two transactions, the main tourism portfolio, and separately, the SeaLink operations to Rottnest Island in WA. Kelsian and Journey Beyond have agreed that SeaLink Rottnest will no longer form part of the tourism portfolio. Having removed SeaLink Rottnest from the transaction perimeter, we are confident we have a compelling case for ACCC approval of the remaining tourism transaction. SeaLink Rottnest is a profitable, standalone commuter ferry business with a strong brand, and from Kelsian's perspective, it is business as usual for our WA marine operations team. Kelsian has significant marine operations outside of the tourism portfolio.

Speaker #2: Kelsian and Journey Beyond have agreed that Sealink Rottnest will no longer form part of the tourism portfolio. Having removed Sealink Rottnest from the transaction perimeter, we are confident we have a compelling case for HCC approval of the remaining tourism transaction.

Speaker #2: SeaLink Rottnest is a profitable, standalone, commuter ferry business with a strong brand, and from Kelsian's perspective, it is business as usual for our WA marine operations team.

Graeme Legh: SeaLink Rottnest is a profitable, standalone commuter ferry business with a strong brand, and from Kelsian's perspective, it is business as usual for our WA marine operations team. Kelsian has significant marine operations outside of the tourism portfolio, and we now intend to continue to operate SeaLink Rottnest alongside our Transperth commuter ferry operation and the other retained ferry operations around Australia and soon to be in New Zealand. We continue work with Journey Beyond to satisfy the required regulatory approvals for the remaining tourism portfolio, which accounts for more than 90% of the original transaction value, and we still expect this transaction to complete in the H1 of FY27. Post completion, Kelsian will be a more focused global commuter and contracted transport business, delivering bus, motorcoach, and marine transportation services.

Speaker #2: Kelsian has significant marine operations outside of the tourism portfolio, and we now intend to continue to operate SeaLink Rottnest alongside our Transperth commuter ferry operation and the other retained ferry operations around Australia and soon to be in New Zealand.

Graeme Legh: We now intend to continue to operate SeaLink Rottnest alongside our Transperth commuter ferry operation and the other retained ferry operations around Australia and soon to be in New Zealand. We continue work with Journey Beyond to satisfy the required regulatory approvals for the remaining tourism portfolio, which accounts for more than 90% of the original transaction value, and we still expect this transaction to complete in the H1 of FY27. Post completion, Kelsian will be a more focused global commuter and contracted transport business, delivering bus, motorcoach, and marine transportation services. Before handing to Andrew, I want to acknowledge the important role Kelsian plays with the many local communities we serve and in enabling cleaner, more accessible, and more connected cities. Kelsian is a people business.

Speaker #2: We continue to work with Journey Beyond to satisfy the required regulatory approvals for the remaining tourism portfolio, which accounts for more than 90% of the original transaction value, and we still expect this transaction to complete in the first half of Q1 or Q2.

Speaker #2: Post-completion, Kelsian will be a more focused global commuter and contracted transport business, delivering bus, motorcoach, and marine transportation services. Before handing over to Andrew, I want to acknowledge the important role Kelsian plays with the many local communities we serve and in enabling cleaner, more accessible, and more connected cities.

Graeme Legh: Before handing to Andrew, I want to acknowledge the important role Kelsian plays with the many local communities we serve and in enabling cleaner, more accessible, and more connected cities. Kelsian is a people business. Our employees provide important transport services that connect communities every day, and the safety of our people and passengers remains our highest priority. We continue to work with our government and corporate partners to improve service quality, support mode shift to public transport, and accelerate the transition to lower-emission fleets and infrastructure. In FY26, the group delivered improved safety outcomes for our workforce with a 24% improvement in lost time injury rate and a 23% improvement in total recordable injury rate. It was pleasing to see the improvement in these key injury frequency measures while maintaining our focus on continual improvement deliver stronger safety outcomes across the group.

Speaker #2: Kelsian is a people business. Our employees provide important transport services that connect communities every day, and the safety of our people and passengers remains our highest priority.

Graeme Legh: Our employees provide important transport services that connect communities every day, and the safety of our people and passengers remains our highest priority. We continue to work with our government and corporate partners to improve service quality, support mode shift to public transport, and accelerate the transition to lower-emission fleets and infrastructure. In FY26, the group delivered improved safety outcomes for our workforce with a 24% improvement in lost time injury rate and a 23% improvement in total recordable injury rate. It was pleasing to see the improvement in these key injury frequency measures while maintaining our focus on continual improvement deliver stronger safety outcomes across the group. We now operate 454 zero-emission buses across Australia, and our Australian bus scope one intensity reduction target remains on track.

Speaker #2: We continue to work with our government and corporate partners to improve service quality, support modal shift to public transport, and accelerate the transition to low-emission fleets and infrastructure.

Speaker #2: In Q1 and Q2, the group delivered improved safety outcomes for our workforce, with a 24% improvement in lost time injury rates and a 23% improvement in total recordable injury rates.

Speaker #2: It was pleasing to see the improvement in these key injury frequency measures while maintaining our focus on continual improvement to deliver stronger safety outcomes across the group.

Speaker #2: We now operate 454 zero-emission buses across Australia, and our Australian bus Scope 1 intensity reduction target remains on track. There were zero significant spills to the environment across our operations, and we exceeded our target for female board representation.

Graeme Legh: We now operate 454 zero-emission buses across Australia, and our Australian bus scope one intensity reduction target remains on track. There were zero significant spills to the environment across our operations, and we exceeded our target for female board representation. We also directed AUD 4.2 million to Indigenous suppliers and continued our partnership with the Royal Flying Doctor Service. Overall, our services played a critical role connecting communities, delivering more than 384 million essential customer journeys during the year. I will now hand to Andrew, who will take you through the group's detailed financial performance and the results from each of our operating divisions.

Graeme Legh: There were zero significant spills to the environment across our operations, and we exceeded our target for female board representation. We also directed AUD 4.2 million to Indigenous suppliers and continued our partnership with the Royal Flying Doctor Service. Overall, our services played a critical role connecting communities, delivering more than 384 million essential customer journeys during the year. I will now hand to Andrew, who will take you through the group's detailed financial performance and the results from each of our operating divisions.

Speaker #2: We also directed $4.2 million to Indigenous suppliers and continued our partnership with the Royal Flying Doctor Service. Overall, our services played a critical role connecting communities, delivering more than 384 million essential customer journeys during the year.

Speaker #2: I will now hand to Andrew, who will take you through the group's detailed financial performance and the results from each of our operating divisions.

Speaker #3: Thanks, Brian. Good morning, everyone. I'm really pleased with the record full-year financial result that Kelsian has delivered, with revenue growth across all divisions and group margin expansion.

Andrew Muir: Thanks, Graeme, and good morning, everyone. I am really pleased with the record full-year financial result that Kelsian has delivered with revenue growth across all divisions and group margin expansion. Revenue increased by 8.8% to just over AUD 2.4 billion. Key drivers were the ramp-up of new and existing contracts in the United States, the full-year contribution from the Bankstown Rail Replacement project in Sydney, the benefits of the contract indexation mechanisms we have in our long-term contracts with government, and service growth across the group. Underlying EBITDA was AUD 315.8 million, up 10.8% and margins improved. The margin improvement reflected growth in key USA employee shuttle contracts, the Bankstown Rail Replacement contribution in Sydney, and fuel mitigation strategies in the non-contracted operations. Below EBITDA, depreciation increased, reflecting the expanded USA motor coach fleet, new vessels coming into service in the marine business, and the broader asset base supporting recently commenced contracts.

Speaker #3: Revenue increased by 8.8% to just over $2.4 billion. Key drivers were the ramp-up of new and existing contracts in the United States, the full-year contribution from the Bankdown Rail Replacement Project in Sydney, the benefits of the contract indexation mechanisms we have in our long-term contracts with government, and service growth across the group.

Speaker #3: Underlying EBITDA was $315.8 million, up 10.8%, and margins improved. The margin improvement reflected growth in key USA employee shuttle contracts, the Bankdown Rail Replacement contribution in Sydney, and fuel mitigation strategies in the non-contracted operations.

Speaker #3: Below EBITDA, depreciation increased, reflecting the expanded USA motorcoach fleet, new vessels coming into service in the Marine business, and the broader asset base supporting recently commenced contracts.

Andrew Muir: Below EBITDA, depreciation increased, reflecting the expanded USA motor coach fleet, new vessels coming into service in the marine business, and the broader asset base supporting recently commenced contracts. The effective rate of tax was 20.1%, slightly below our expectations for an effective tax rate of between 22% and 25%. This was due to international tax rate differentials and the benefits of exempt shipping income in Australia. Underlying EBIT was AUD 155.7 million, up 14.5%. Underlying NPATA was AUD 111.1 million, up 17.2%, and earnings per share before amortization increased 16.8% to AUD 0.409 per share. Statutory NPAT, AUD 63.5 million was an improvement of 16.6% on the prior year.

Speaker #3: The effective rate of tax was 20.1%, slightly below our expectations for an effective tax rate of between 22% and 25%. This was due to international tax rate differentials and the benefit of exempt shipping income in Australia.

Andrew Muir: The effective rate of tax was 20.1%, slightly below our expectations for an effective tax rate of between 22% and 25%. This was due to international tax rate differentials and the benefits of exempt shipping income in Australia. Underlying EBIT was AUD 155.7 million, up 14.5%. Underlying NPATA was AUD 111.1 million, up 17.2%, and earnings per share before amortization increased 16.8% to AUD 0.409 per share. Statutory NPAT, AUD 63.5 million was an improvement of 16.6% on the prior year. Included in the statutory results were one-off costs associated with several small acquisitions completed in the period, costs associated with the divestment of the tourism portfolio, and implementation costs of the new global group finance system. Combined, these totaled AUD 14.5 million after tax.

Speaker #3: Underlying EBIT was $155.7 million, up 14.5%. Underlying MPAT-A was $111.1 million, up 17.2%, and earnings per share before amortization increased 16.8% to 14.9 cents per share.

Speaker #3: Statutory MPAT of $63.5 million was an improvement of 16.6% on the prior year. Included in the statutory results were one-off costs associated with several small acquisitions completed in the period, costs associated with the divestment of the tourism portfolio, and implementation costs of the new global group finance system.

Andrew Muir: Included in the statutory results were one-off costs associated with several small acquisitions completed in the period, costs associated with the divestment of the tourism portfolio, and implementation costs of the new global group finance system. Combined, these totaled AUD 14.5 million after tax. Reflecting the strength of the result and cash generation of the business, the board has declared a fully franked final dividend of AUD 0.10 per share, an increase of AUD 0.005 per share, taking the full year dividend to AUD 0.18 per share. Turning to slide 11. Cash generation remains a strength of the business and continues to be well supported by long-term contracts and a high proportion of contracted or non-discretionary revenue. Gross operating cash flow was just under AUD 300 million, and net operating cash flow increased by 7.3% to AUD 220.1 million.

Speaker #3: Combined, these totaled $14.5 million after tax. Reflecting the strength of the result and cash generation of the business, the Board has declared a fully-franked final dividend of 10 cents per share, an increase of 0.5 cents per share, taking the full year dividend to 18 cents per share.

Andrew Muir: Reflecting the strength of the result and cash generation of the business, the board has declared a fully franked final dividend of AUD 0.10 per share, an increase of AUD 0.005 per share, taking the full year dividend to AUD 0.18 per share. Turning to slide 11. Cash generation remains a strength of the business and continues to be well supported by long-term contracts and a high proportion of contracted or non-discretionary revenue. Gross operating cash flow was just under AUD 300 million, and net operating cash flow increased by 7.3% to AUD 220.1 million. Cash conversion was just over 91%, underpinned by the predictable and defensive nature of our contracted earnings. Investing cash flow was AUD 136.6 million and reflected a combination of sustaining maintenance expenditure and targeted growth investments, particularly in the United States and UK, as well as the two new Kangaroo Island vessels and associated infrastructure.

Speaker #3: Turning to slide 11, cash generation remains a strength of the business and continues to be well supported by long-term contracts and a high proportion of contracted or non-discretionary revenue.

Speaker #3: Gross operating cash flow was just under $300 million, and net operating cash flow increased by 7.3% to $220.1 million. Cash conversion was just over 91%, underpinned by the predictable and defensive nature of our contracted earnings.

Andrew Muir: Cash conversion was just over 91%, underpinned by the predictable and defensive nature of our contracted earnings. Investing cash flow was AUD 136.6 million and reflected a combination of sustaining maintenance expenditure and targeted growth investments, particularly in the United States and UK, as well as the two new Kangaroo Island vessels and associated infrastructure. I will provide some more details of the split of capital expenditure on slide 13. The group ended the year with AUD 176.3 million of cash reserves, providing strong liquidity and flexibility as we move into FY27. The business is generating meaningful cash while funding growth CapEx, paying increased dividends, and continuing to bring leverage lower as earnings grow.

Speaker #3: Investing cash flow was $136.6 million, and reflected a combination of sustaining maintenance expenditure and targeted growth investment, particularly in the United States and UK, as well as the two new Kangaroo Island vessels and associated infrastructure.

Speaker #3: I'll provide some more details on the split of capital expenditure on slide 13. The group ended the year with $176.3 million of cash reserves.

Andrew Muir: I will provide some more details of the split of capital expenditure on slide 13. The group ended the year with AUD 176.3 million of cash reserves, providing strong liquidity and flexibility as we move into FY27. The business is generating meaningful cash while funding growth CapEx, paying increased dividends, and continuing to bring leverage lower as earnings grow. To slide 12. Leverage reduced from 2.7 times a year ago to 2.46 times at 30 June 2026 and is now within our target leverage range of between 2 and 2.5 times. The reduced leverage has been underpinned by earnings growth, strong operating cash generation, and disciplined capital expenditure. In relation to our borrowings, it is important to distinguish between Kelsian's corporate borrowings and special purpose vehicle debt on our balance sheet attached to government-backed contracted assets, because the economic risk of these is quite different.

Speaker #3: Providing strong liquidity and flexibility as we move into Q1 and Q2. The business is generating meaningful cash while funding growth capex, paying increased dividends, and continuing to bring leverage lower as earnings grow.

Speaker #3: On slide 12, leverage reduced from 2.7 times a year ago to 2.46 times at 30 June 2026, and is now within our target leverage range of between 2 and 2.5 times.

Andrew Muir: To slide 12. Leverage reduced from 2.7 times a year ago to 2.46 times at 30 June 2026 and is now within our target leverage range of between 2 and 2.5 times. The reduced leverage has been underpinned by earnings growth, strong operating cash generation, and disciplined capital expenditure. In relation to our borrowings, it is important to distinguish between Kelsian's corporate borrowings and special purpose vehicle debt on our balance sheet attached to government-backed contracted assets, because the economic risk of these is quite different. Limited recourse SPV debt funds government contracted assets. It is ring-fenced from the rest of the Kelsian Group. It is serviced by the associated contract cash flows. It amortizes with the asset, and importantly, is excluded from our covenant leverage calculations.

Speaker #3: The reduced leverage has been underpinned by earnings growth, strong operating cash generation, and disciplined capital expenditure. In relation to our borrowings, it's important to distinguish between Kelsian's corporate borrowings and special-purpose vehicle debt on a balance sheet attached to government-backed contracted assets, because the economic risk of these is quite different.

Speaker #3: Limited recourse SPV debt funds government-contracted assets. Its ring-fence from the rest of the Kelsian Group is serviced by the associated contract cash flows. It amortizes with the assets and, importantly, is excluded from our covenant leverage calculation.

Andrew Muir: Limited recourse SPV debt funds government contracted assets. It is ring-fenced from the rest of the Kelsian Group. It is serviced by the associated contract cash flows. It amortizes with the asset, and importantly, is excluded from our covenant leverage calculations. In addition, a small component of our corporate debt relates to government-backed contracted assets that are expected to be recovered at the end of the relevant contract or move into an SPV structure. At 30 June, we had AUD 32.3 million of government-backed contracted assets on the Kelsian balance sheet, pending transfer into the SPV ring-fence structure. Excluding those contracted government-backed assets and the associated earnings, leverage would have been 2.37 times at year-end. The key point for investors is that this financing structure supports government fleet investments, including the rollout of electric buses, while materially reducing stranded assets and residual value risk to Kelsian.

Speaker #3: In addition, a small component of our corporate debt relates to government-backed contracted assets that are expected to be recovered at the end of the relevant contract, or moved into an SPV structure.

Andrew Muir: In addition, a small component of our corporate debt relates to government-backed contracted assets that are expected to be recovered at the end of the relevant contract or move into an SPV structure. At 30 June, we had AUD 32.3 million of government-backed contracted assets on the Kelsian balance sheet, pending transfer into the SPV ring-fence structure. Excluding those contracted government-backed assets and the associated earnings, leverage would have been 2.37 times at year-end. The key point for investors is that this financing structure supports government fleet investments, including the rollout of electric buses, while materially reducing stranded assets and residual value risk to Kelsian. We remain focused on maintaining a strong balance sheet while retaining flexibility to invest where opportunities meet our return hurdles.

Speaker #3: At 30 June, we had $32.3 million of government-backed contracted assets on Kelsian's balance sheet, pending transfer into the SPV ring-fence structure. Excluding those contracted government-backed assets and the associated earnings, leverage would have been 2.37 times at year end.

Speaker #3: The key point for investors is that this financing structure supports government fleet investment, including the rollout of electric buses, while materially reducing stranded assets and residual value risk for Kelsian.

Speaker #3: We remain focused on maintaining a strong balance sheet, while retaining flexibility to invest where opportunities meet our return hurdle. With leverage back inside the target range, we retain the flexibility to take advantage of organic and inorganic growth opportunities we see across the group.

Andrew Muir: We remain focused on maintaining a strong balance sheet while retaining flexibility to invest where opportunities meet our return hurdles. With leverage back inside the target range, we retain the flexibility to take advantage of organic and inorganic growth opportunities we see across the group. Turning to capital expenditure. Total net CapEx in FY26 was AUD 133 million, after taking into account proceeds of AUD 8 million from asset sales. The largest chunk of CapEx investment was in the international bus division, principally relating to new and secondhand motor coaches to support the ramp-up of new and existing contracts in the United States, buses for the new Liverpool contract, which commences in January, plus new buses in Jersey, which we anticipate will move into an SPV structure. Marine and tourism CapEx was AUD 31.6 million, reflecting the Kangaroo Island vessels and infrastructure expenditure and vessels in South East Queensland.

Andrew Muir: With leverage back inside the target range, we retain the flexibility to take advantage of organic and inorganic growth opportunities we see across the group. Turning to capital expenditure. Total net CapEx in FY26 was AUD 133 million, after taking into account proceeds of AUD 8 million from asset sales. The largest chunk of CapEx investment was in the international bus division, principally relating to new and secondhand motor coaches to support the ramp-up of new and existing contracts in the United States, buses for the new Liverpool contract, which commences in January, plus new buses in Jersey, which we anticipate will move into an SPV structure. Marine and tourism CapEx was AUD 31.6 million, reflecting the Kangaroo Island vessels and infrastructure expenditure and vessels in South East Queensland.

Speaker #3: Turning to capital expenditure, total net capex in Q1 and Q2 was $133 million, after taking into account proceeds of $8 million from asset sales.

Speaker #3: The largest chunk of capex investment was in the International Bus division, principally relating to new and second-hand motor coaches to support the ramp-up of new and existing contracts in the United States, buses for the new Liverpool contract, which commences in January, plus new buses in Jersey, which we anticipate will move into an SPV structure.

Speaker #3: Marine and tourism capex was $31.6 million, reflecting the Kangaroo Island vessels and infrastructure expenditure, and vessels in Southeast Queensland. $15 million has been carried forward into Q1 and Q2 because of the revised delivery timetable for the new Kangaroo Island boats and infrastructure.

Andrew Muir: AUD 15 million has been carried forward into FY27 because of the revised delivery timetable for the new Kangaroo Island boats and infrastructure. Australian bus capital investment was AUD 14.9 million, comprising motor coaches in the resources sector of our business, replacement buses for Stradbroke Island, and electrical charging infrastructure. FY27 forecast CapEx is approximately AUD 123 million, including AUD 85 million of sustaining maintenance CapEx, the carry forward of AUD 15 million from FY26, and approximately AUD 23 million of committed growth CapEx in various operating divisions. Any additional growth CapEx will remain subject to meeting our strategic and investment return hurdles. Turning now to the divisional performance and starting with Australian Bus on slide 15. Revenue growth was underpinned by contract indexation and the full year contribution from Bankstown Rail Replacement services. The division delivered an improved margin despite inflationary pressures and fuel volatility.

Speaker #3: Australian bus capital investment was $14.9 million, comprising motor coaches in the resources sector of our business, replacement buses for Stradbroke Island, and electric charging infrastructure.

Speaker #3: Q1 and Q2 forecast capex is approximately $123 million, including $85 million of sustaining maintenance capex, the carry forward of $15 million from Q1 and Q2, and approximately $23 million of committed growth capex in various operating divisions.

Speaker #3: Any additional growth capex will remain subject to meeting our strategic and investment return hurdles. Turning now to the divisional performance, and starting with Australian Bus on slide 15.

Speaker #3: Revenue growth was underpinned by contract indexation and the full-year contribution from Bankdown Rail Placement Services. The division delivered an improved margin, despite inflationary pressures and fuel volatility.

Andrew Muir: The division delivered an improved margin despite inflationary pressures and fuel volatility. The contractual indexation mechanisms provided effective protection against fuel price movements and other inflationary cost pressures, and the operating improvement initiatives implemented during the period improved performance. Sydney operations improved and stabilized over the year as network service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable. We signed a two-year extension of the Region 6 contract in Sydney, which commenced on 1 July 2026 on improved terms, providing a stronger foundation for FY27. The Bankstown Rail project continued to make a meaningful contribution for all of FY26 and is now expected to wind down during the H1 of FY27.

Speaker #3: The contractual indexation mechanisms provided effective protection against fuel price movements and other inflationary cost pressures, and the operating improvement initiatives implemented during the period improved performance.

Andrew Muir: The contractual indexation mechanisms provided effective protection against fuel price movements and other inflationary cost pressures, and the operating improvement initiatives implemented during the period improved performance. Sydney operations improved and stabilized over the year as network service changes were implemented and the impact of depot electrification and government fleet replacement delays became more manageable. We signed a two-year extension of the Region 6 contract in Sydney, which commenced on 1 July 2026 on improved terms, providing a stronger foundation for FY27. The Bankstown Rail project continued to make a meaningful contribution for all of FY26 and is now expected to wind down during the H1 of FY27. The division also successfully commenced the Ipswich and Logan contract during the year, representing Kelsian's first competitively tended bus contract in Queensland and establishing an important platform for future growth in the state. To slide 16.

Speaker #3: Sydney operations improved and stabilized over the year as network service changes were implemented, and the impact of depot electrification and government fleet replacement delays became more manageable.

Speaker #3: We signed a two-year extension of the region's sixth contract in Sydney, which commenced on 1 July 2026, on improved terms, providing a stronger foundation for Q1 and Q2.

Speaker #3: The Bankdown Rail project continued to make a meaningful contribution for all of Q1 and Q2, and is now expected to wind down during the first half of Q3, Q4.

Speaker #3: The division also successfully commenced the Ipswich and Logan contract during the year, representing Kelsian's first competitively tendered bus contract in Queensland, and establishing an important platform for future growth in the state.

Andrew Muir: The division also successfully commenced the Ipswich and Logan contract during the year, representing Kelsian's first competitively tended bus contract in Queensland and establishing an important platform for future growth in the state. To slide 16. International Bus was the strongest divisional contributor to group growth, with revenue increasing 17.4% and underlying EBITDA increasing 28.1%, led by the United States as a key contributor to the FY26 results. AAAHI achieved strong revenue and margin growth as new industrial employee shuttle contracts commenced and ramped up much faster than expected and existing contracts expanded. During the period, we leased two additional depots in the Gulf region to support the larger fleet and improve maintenance capability and vehicle availability.

Speaker #3: Slide 16. International Bus was the strongest divisional contributor to group growth, with revenue increasing 17.4% and underlying EBITDA increasing 28.1%, led by the United States as the key contributor to the Q1 and Q2 results.

Andrew Muir: International Bus was the strongest divisional contributor to group growth, with revenue increasing 17.4% and underlying EBITDA increasing 28.1%, led by the United States as a key contributor to the FY26 results. AAAHI achieved strong revenue and margin growth as new industrial employee shuttle contracts commenced and ramped up much faster than expected and existing contracts expanded. During the period, we leased two additional depots in the Gulf region to support the larger fleet and improve maintenance capability and vehicle availability. Corporate and technology employee shuttle activity continued to grow, including a new data center contract, while charter activity was supported by major events, including the FIFA World Cup. The USA pipeline of new and existing industrial contracts remains strong.

Speaker #3: ARHI achieved strong revenue and margin growth as new industrial employee shuttle contracts commenced and ramped up much faster than expected, and existing contracts expanded.

Speaker #3: During the period, we released two additional depots in the Gulf region to support the larger fleet and improved maintenance capability and vehicle availability. Corporate and technology employee shuttle activity continued to grow, including a new data center contract, while charter activity was supported by major events, including the FIFA World Cup.

Andrew Muir: Corporate and technology employee shuttle activity continued to grow, including a new data center contract, while charter activity was supported by major events, including the FIFA World Cup. The USA pipeline of new and existing industrial contracts remains strong. We continue to see opportunities to grow with existing clients and opportunities for new work across LNG, energy, data center, and major infrastructure markets. Singapore delivered another stable result. The Sentosa contract commenced successfully during the year, and the Bulim contract expanded with additional services supported by strong operational and maintenance performance. In the UK, our strategy was validated by the award of Liverpool City school bus contract commencing in January 2027, and the acquisition of South Wales Transport also provides local capability and incumbency ahead of significant regional bus franchising pipelines.

Speaker #3: The USA pipeline of new and existing industrial contracts remained strong. We continue to see opportunities to grow with existing clients, as well as opportunities for new work across LNG, energy, data center, and major infrastructure markets.

Andrew Muir: We continue to see opportunities to grow with existing clients and opportunities for new work across LNG, energy, data center, and major infrastructure markets. Singapore delivered another stable result. The Sentosa contract commenced successfully during the year, and the Bulim contract expanded with additional services supported by strong operational and maintenance performance. In the UK, our strategy was validated by the award of Liverpool City school bus contract commencing in January 2027, and the acquisition of South Wales Transport also provides local capability and incumbency ahead of significant regional bus franchising pipelines. For Marine and Tourism, Marine and Tourism delivered revenue growth despite subdued consumer confidence and fuel price volatility, with yield management, surcharges, and operational initiatives helping to protect earnings. The business also managed the uncertainty associated with the proposed divestment of the tourism portfolio well.

Speaker #3: Singapore delivered another stable result. The Sentosa contract commenced successfully during the year, and the Bullum contract expanded with additional services, supported by strong operational and maintenance performance.

Speaker #3: In the UK, our strategy was validated by the award of the Liverpool City School Bus contracts commencing in January 2027, and the acquisition of South Wales Transport also provides local capability and incumbency ahead of significant regional bus franchising pipelines.

Speaker #3: For Marine and Tourism, Marine and Tourism delivered revenue growth despite subdued consumer confidence and fuel price volatility, with yield management, surcharges, and operational initiatives helping to protect earnings.

Andrew Muir: For Marine and Tourism, Marine and Tourism delivered revenue growth despite subdued consumer confidence and fuel price volatility, with yield management, surcharges, and operational initiatives helping to protect earnings. The business also managed the uncertainty associated with the proposed divestment of the tourism portfolio well. Performance benefited from contracted ferry demand, improved utilization of new vessels and yield management. Elevated fuel costs impacted the non-contracted parts of M&T, but was mitigated through targeted surcharges, fare adjustments, and operational efficiency initiatives. The team has continued preparation for the launch of the new Kangaroo Island vessel contract. Service commencement is now scheduled for October 2026, and our focus is on a safe and reliable transition while maximizing returns from the increased capacity, frequency, and improved customer value proposition.

Speaker #3: The business also managed the uncertainty associated with the proposed investment of the tourism portfolio well. Performance benefited from contracted ferry demand, improved utilization of new vessels, and yield management.

Andrew Muir: Performance benefited from contracted ferry demand, improved utilization of new vessels and yield management. Elevated fuel costs impacted the non-contracted parts of M&T, but was mitigated through targeted surcharges, fare adjustments, and operational efficiency initiatives. The team has continued preparation for the launch of the new Kangaroo Island vessel contract. Service commencement is now scheduled for October 2026, and our focus is on a safe and reliable transition while maximizing returns from the increased capacity, frequency, and improved customer value proposition. Post-divestment, the retained marine businesses have similar infrastructure-like characteristics to our public transport bus contracts. Revenue from the division will be less sensitive to changes in economic conditions and will be backed by long-term, high-quality service contracts with lower capital intensity. Finally, turning to corporate costs. The increase during the year related to several items.

Speaker #3: Elevated fuel costs impacted the non-contracted parts of M&T, but this was mitigated through targeted surcharges, fare adjustments, and operational efficiency initiatives. The team has continued preparations for the launch of the new Kangaroo Island vessel contract.

Speaker #3: Service commencement is now scheduled for October 2026, and our focus is on a safe and reliable transition while maximizing returns from the increased capacity, frequency, and improved customer value proposition.

Speaker #3: Most investments in the retained marine businesses have similar infrastructure-like characteristics to our public transport bus contracts. Revenue from the division will be less sensitive to changes in economic conditions and will be backed by long-term, high-quality service contracts with lower capital intensity.

Andrew Muir: Post-divestment, the retained marine businesses have similar infrastructure-like characteristics to our public transport bus contracts. Revenue from the division will be less sensitive to changes in economic conditions and will be backed by long-term, high-quality service contracts with lower capital intensity. Finally, turning to corporate costs. The increase during the year related to several items. These included the performance of our captive insurance structure and elevated claims activity for bus accidents, the recognition of non-cash long-term incentive expense, and continued investment in cybersecurity. The key corporate milestone was the successful go-live of the global Workday finance system on 1 July 2026, supporting stronger governance, controls, data visibility, and process consistency across the group. The platform standardizes processes, strengthens governance and control, and provides a more scalable finance environment for the group.

Speaker #3: Finally, turning to corporate costs, the increase during the year related to several items. These included the performance of our captive insurance structure and elevated claims activity for bus accidents, the recognition of non-CAS cash long-term incentive expense, and continued investment in cybersecurity.

Andrew Muir: These included the performance of our captive insurance structure and elevated claims activity for bus accidents, the recognition of non-cash long-term incentive expense, and continued investment in cybersecurity. The key corporate milestone was the successful go-live of the global Workday finance system on 1 July 2026, supporting stronger governance, controls, data visibility, and process consistency across the group. The platform standardizes processes, strengthens governance and control, and provides a more scalable finance environment for the group. Work on the Workday HR implementation has commenced and is scheduled to go live in the first half of FY28. The anticipated FY27 implementation cost for Workday HR are AUD 12 million. While implementation costs have affected near-term earnings, the new platform is expected to deliver efficiency, governance, and controls over time as more than 13 legacy systems are retired and data and processes are standardized and automated across the group.

Speaker #3: The key corporate milestone was the successful go-live of the global Workday Finance system on 1 July 2026, supporting stronger governance, controls, data visibility, and process consistency across the group.

Speaker #3: The platform standardizes processes, strengthens governance and control, and provides a more scalable finance environment for the Group. Work on the Workday HR implementation has commenced and is scheduled to go live in the first half of FY28.

Andrew Muir: Work on the Workday HR implementation has commenced and is scheduled to go live in the first half of FY28. The anticipated FY27 implementation cost for Workday HR are AUD 12 million. While implementation costs have affected near-term earnings, the new platform is expected to deliver efficiency, governance, and controls over time as more than 13 legacy systems are retired and data and processes are standardized and automated across the group. The successful finance go-live establishes a stronger platform for governance, control, data visibility, and process consistency as the group continues to grow. I will now hand back to Graeme to discuss growth and the outlook for FY27.

Speaker #3: The anticipated FY27 implementation cost for Workday HR is $12 million. While implementation costs have affected near-term earnings, the new platform is expected to deliver efficiency, governance, and controls over time, as more than 13 legacy systems are retired and data and processes are standardized and automated across the group.

Speaker #3: The successful Finance go-live establishes a stronger platform for governance, control, data visibility, and process consistency as the Group continues to grow. I will now hand back to Graham to discuss growth and the outlook for FY27.

Andrew Muir: The successful finance go-live establishes a stronger platform for governance, control, data visibility, and process consistency as the group continues to grow. I will now hand back to Graeme to discuss growth and the outlook for FY27.

Speaker #1: Thanks, Andrew. Turning to slide 20: the foundations are in place for another strong result in FY27. In FY26, our focus on operational execution delivered another record result.

Graeme Legh: Thanks, Andrew. Turning to slide 20. The foundations are in place for another strong result in FY27. In FY26, our focus on operational execution delivered another record result. We strengthened the balance sheet, and we continued to build a significant growth runway across several geographies. Our key focus areas are continuing to drive operational efficiencies, contract extensions, new contract wins, delivering service growth, and capitalizing on growth opportunities in the United States and the United Kingdom. Specifically, we will transition and mobilize the new Kangaroo Island contracts, prepare for the New Zealand ferry contracts commencing in July 2027, and continue the orderly separation of the tourism portfolio from the retained marine operations. In terms of guidance for FY27, underlying EBITDA is expected to be between AUD 320 million and AUD 335 million, assuming no significant deterioration in the operating environment.

Speaker #1: We strengthened the balance sheet, and we continue to build a significant growth runway across several geographies. Our key focus areas are to continue driving operational efficiencies.

Speaker #1: Contract extensions, new contract wins, delivering service growth, and capitalizing on growth opportunities in the United States and the United Kingdom. Specifically, we will transition and mobilize the new Kangaroo Island contract, prepare for the New Zealand ferry contracts commencing in July 2027, and continue the orderly separation of the tourism portfolio from the retained marine operations.

Speaker #1: In terms of guidance for FY27, underlying EBITDA is expected to be between $320 million and $335 million, assuming no significant deterioration in the operating environment.

Speaker #1: Guidance is inclusive of the $3.5 million of mobilization costs for Kangaroo Island, which due to delays will now be incurred in FY27. Importantly, because the tourism portfolio transaction remains subject to regulatory approvals and the timing of completion is not yet known, FY27 guidance includes the contribution from the tourism portfolio for the full year, assuming no change to the operating portfolio.

Graeme Legh: Guidance is inclusive of the AUD 3.5 million of mobilization costs for Kangaroo Island, which due to delays will now be incurred in FY27. Importantly, because the tourism portfolio transaction remains subject to regulatory approvals and the timing of completion is not yet known, FY27 guidance includes the contribution from the tourism portfolio for the full year, assuming no change to the operating portfolio. We will update guidance when there is sufficient visibility on completion and the financial impact of the transaction. I am also pleased to report that the group has commenced the new financial year strongly, with July trading being in line with expectations. Slide 21 brings the growth strategy together under three complementary pillars, all anchored in disciplined capital allocation, a focus on our core strengths, and sustainable shareholder returns.

Speaker #1: We will update guidance when there is sufficient visibility on completion and the financial impact of the transaction. I'm also pleased to report that the Group has commenced the new financial year strongly, with July trading being in line with expectations.

Speaker #1: July 21 brings the growth strategy together under three complementary pillars, all anchored in discipline, capital allocation, a focus on our core strengths, and sustainable shareholder returns.

Speaker #1: First, we will protect and grow our core markets across Australia, the US, the UK, and Singapore by retaining and expanding contracted bus and marine services, improving the performance of existing networks, and leveraging our customer relationships, operational capability, efficiencies of our scale, and our track record.

Graeme Legh: First, we will protect and grow our core markets across Australia, the US, the UK, and Singapore by retaining and expanding contracted bus and marine services, improving the performance of existing networks, and leveraging our customer relationships, operational capability, efficiencies of our scale, and our track record. Second, we will selectively grow our international platforms and enter attractive new markets. The immediate priorities are continued growth in the US, execution of the UK bus franchising opportunity, and expansion in New Zealand, targeting long-term contracted earnings in markets with strong fundamentals. Third, we will pursue targeted strategic opportunities, including bolt-on acquisitions in our existing geographies that enhance capability, scale, or geographic reach, while recycling capital from non-core assets where appropriate. Across all three pillars, underwriting and returns discipline remains central, and all growth must meet our strategic and financial hurdles and support long-term value creation.

Speaker #1: Second, we will selectively grow our international platforms and enter attractive new markets. The immediate priorities are continued growth in the US, execution of the UK bus franchising opportunity, and expansion in New Zealand.

Speaker #1: Targeting long-term contracted earnings in markets with strong fundamentals. Third, we will pursue targeted strategic opportunities, including bolt-on acquisitions in our existing geographies that enhance capability, scale, or geographic reach, while recycling capital from non-core assets where appropriate.

Speaker #1: Across all three pillars, underwriting and returns discipline remain central, and all growth must meet our strategic and financial hurdles and support long-term value creation.

Graeme Legh: Across all three pillars, underwriting and returns discipline remains central, and all growth must meet our strategic and financial hurdles and support long-term value creation. Slide 22 sets out an important structural tailwind supporting the long-term outlook for Kelsian. Investment in better public transport creates a reinforcing cycle of improved services, higher patronage, and further network investment. With households increasingly focused on transport affordability, governments are investing in more frequent, reliable, and accessible public transport as part of broader cost of living, congestion, and sustainability objectives. We are seeing tangible evidence of that policy support. New South Wales is investing AUD 452 million to expand bus services. Victoria is enhancing its urban bus network. Western Australia has announced additional investment in ferry services and electric buses.

Speaker #1: July 22 sets out an important structural tailwind supporting the long-term outlook for Kelsian. Investment in better public transport creates a reinforcing cycle of improved services, higher patronage, and further network investment.

Graeme Legh: Slide 22 sets out an important structural tailwind supporting the long-term outlook for Kelsian. Investment in better public transport creates a reinforcing cycle of improved services, higher patronage, and further network investment. With households increasingly focused on transport affordability, governments are investing in more frequent, reliable, and accessible public transport as part of broader cost of living, congestion, and sustainability objectives. We are seeing tangible evidence of that policy support. New South Wales is investing AUD 452 million to expand bus services. Victoria is enhancing its urban bus network. Western Australia has announced additional investment in ferry services and electric buses. Governments are investing in service frequency, infrastructure, and technology at the same time as households are increasingly focused on transport affordability in the context of ongoing cost of living pressures.

Speaker #1: With households increasingly focused on transport affordability, governments are investing in more frequent, reliable, and accessible public transport as part of broader cost-of-living, congestion, and sustainability objectives.

Speaker #1: We are seeing tangible evidence of that policy support. New South Wales is investing $452 million to expand bus services, Victoria is enhancing its urban bus network, and Western Australia has announced additional investment in ferry services and electric buses.

Speaker #1: Governments are investing in service frequency, infrastructure, and technology at the same time as households are increasingly focused on transport affordability in the context of ongoing cost-of-living pressures.

Graeme Legh: Governments are investing in service frequency, infrastructure, and technology at the same time as households are increasingly focused on transport affordability in the context of ongoing cost of living pressures. The opportunity exists to convert that investment and affordability support into sustained patronage growth through improved frequency, connectivity, and customer experience. Better frequency, reliability, and connectivity can attract and retain passengers. Higher patronage then supports stronger asset utilization, more efficient network planning, and the case for further investment into public transport services and infrastructure. The broader system benefits are also important. Reduced congestion, lower emissions, more affordable transport, and reduced pressure on road capacity. Kelsian is well-placed to participate in this cycle as a trusted operating partner with scale, local relationships, and a strong track record of mobilizing and improving complex transport networks.

Speaker #1: The opportunity exists to convert that investment and affordability support into sustained patronage growth through improved frequency, connectivity, and customer experience. Better frequency, reliability, and connectivity can attract and retain passengers.

Graeme Legh: The opportunity exists to convert that investment and affordability support into sustained patronage growth through improved frequency, connectivity, and customer experience. Better frequency, reliability, and connectivity can attract and retain passengers. Higher patronage then supports stronger asset utilization, more efficient network planning, and the case for further investment into public transport services and infrastructure. The broader system benefits are also important. Reduced congestion, lower emissions, more affordable transport, and reduced pressure on road capacity. Kelsian is well-placed to participate in this cycle as a trusted operating partner with scale, local relationships, and a strong track record of mobilizing and improving complex transport networks. Turning to slide 23. The United States is one of our most attractive growth markets, and we believe the platform we have established provides strong foundations for the next phase of our growth. We are positioned across high-growth sectors, including industrial, corporate, and technology employee shuttle services.

Speaker #1: Higher patronage, in turn, supports stronger asset utilization, more efficient network planning, and the case for further investment into public transport services and infrastructure. The broader system benefits are also important.

Speaker #1: Reduced congestion, lower emissions, more affordable transport, and reduced pressure on road capacity. Kelsian is well placed to participate in this cycle as a trusted operating partner with scale, local relationships, and a strong track record of mobilizing and improving complex transport networks.

Speaker #1: Turning to slide 23. The United States is one of our most attractive growth markets, and we believe the platform we have established provides strong foundations for the next phase of our growth.

Graeme Legh: Turning to slide 23. The United States is one of our most attractive growth markets, and we believe the platform we have established provides strong foundations for the next phase of our growth. We are positioned across high-growth sectors, including industrial, corporate, and technology employee shuttle services. In particular, major investments in energy, data centers, and infrastructure are supporting sustained demand for workforce transportation. AAAHI is already the second-largest motor coach operator in the United States, but the market remains highly fragmented, with more than 87% of operators running fewer than 25 coaches. That creates a significant opportunity to scale from our established platform. Our customer base also supports recurring organic growth. Since the acquisition in June 2023, we have maintained 100% renewal track record for key contracts while expanding services with a number of important existing customers.

Speaker #1: We are positioned across high-growth sectors, including industrial, corporate, and technology employee shuttle services. In particular, major investments in energy, data centers, and infrastructure are supporting sustained demand for workforce transportation.

Graeme Legh: In particular, major investments in energy, data centers, and infrastructure are supporting sustained demand for workforce transportation. AAAHI is already the second-largest motor coach operator in the United States, but the market remains highly fragmented, with more than 87% of operators running fewer than 25 coaches. That creates a significant opportunity to scale from our established platform. Our customer base also supports recurring organic growth. Since the acquisition in June 2023, we have maintained 100% renewal track record for key contracts while expanding services with a number of important existing customers. The growth pathway is therefore multidimensional. New contract wins, expansion with existing customers, entry into adjacent geographies and end markets, and disciplined bolt-on M&A where it strengthens our capability, scale, or geographic reach and meets our return requirements. The UK represents one of the group's most significant capital-light organic growth opportunities.

Speaker #1: AAHI is already the second-largest motor coach operator in the United States, but the market remains highly fragmented, with more than 87% of operators running fewer than 25 coaches.

Speaker #1: That creates a significant opportunity to scale from our established platform. Our customer base also supports recurring organic growth. Since the acquisition in June 2023, we have maintained a 100% renewal track record for key contracts, while expanding services with a number of important existing customers.

Speaker #1: The growth pathway is therefore multidimensional. New contract wins, expansion with existing customers, entry into adjacent geographies and end markets, and disciplined bolt-on M&A where it strengthens our capability, scale, or geographic reach and meets our return requirements.

Graeme Legh: The growth pathway is therefore multidimensional. New contract wins, expansion with existing customers, entry into adjacent geographies and end markets, and disciplined bolt-on M&A where it strengthens our capability, scale, or geographic reach and meets our return requirements. The UK represents one of the group's most significant capital-light organic growth opportunities. The tender pipeline is building progressively across multiple regional authorities, with more than 2,000 buses currently anticipated to be franchised in the next 12 months and an estimated addressable market of approximately 10,000 buses over the next three to five years. Our recently announced Liverpool contract wins provide important early validation of the strategy. The contract commenced in January 2027, and together with our operating platforms in Liverpool and Wales, strengthen our local capability, our relationships, and our incumbency credentials.

Speaker #1: The UK represents one of the Group's most significant capital-light organic growth opportunities. The tender pipeline is building progressively across multiple regional authorities, with more than 2,000 buses currently anticipated to be franchised in the next 12 months.

Graeme Legh: The tender pipeline is building progressively across multiple regional authorities, with more than 2,000 buses currently anticipated to be franchised in the next 12 months and an estimated addressable market of approximately 10,000 buses over the next three to five years. Our recently announced Liverpool contract wins provide important early validation of the strategy. The contract commenced in January 2027, and together with our operating platforms in Liverpool and Wales, strengthen our local capability, our relationships, and our incumbency credentials. The opportunity is attractive because the franchise model can provide long-term contracted earnings without requiring the same level of balance sheet capital as a traditional asset-heavy expansion. We will remain selective and disciplined, focusing on markets where our operating capability, local position, and customer proposition gives us a clear strategic advantage, and where returns meet our investment hurdles.

Speaker #1: And an estimated addressable market of approximately 10,000 buses over the next three to five years. Our recently announced Liverpool contract wins provide important early validation of the strategy.

Speaker #1: The contract commenced on January 27, and together with our operating platforms in Liverpool and Wales, strengthens our local capability, our relationships, and our incumbency credentials.

Speaker #1: The opportunities are attractive because the franchise model can provide long-term contracted earnings without requiring the same level of balance sheet capital as a traditional asset-heavy expansion.

Graeme Legh: The opportunity is attractive because the franchise model can provide long-term contracted earnings without requiring the same level of balance sheet capital as a traditional asset-heavy expansion. We will remain selective and disciplined, focusing on markets where our operating capability, local position, and customer proposition gives us a clear strategic advantage, and where returns meet our investment hurdles. Our objective is not simply to build scale, it is to create a high-quality, defensible regional platform that can compound through successive franchise opportunities. In closing, FY26 demonstrates the quality and resilience of Kelsian's business model and the progress we have made in positioning the group for its next phase. We delivered record earnings and strong cash generation, reduced leverage into our target range, and continued to simplify the portfolio.

Speaker #1: We will remain selective and disciplined, focusing on markets where our operating capability, local position, and customer proposition give us a clear strategic advantage, and where returns meet our investment hurdles.

Speaker #1: Our objective is not simply to build scale; it is to create a high-quality, defensible, regional platform that can compound through successive franchise opportunities. In closing, FY26 demonstrates the quality and resilience of Kelsian's business model and the progress we have made in positioning the group for its next phase.

Graeme Legh: Our objective is not simply to build scale, it is to create a high-quality, defensible regional platform that can compound through successive franchise opportunities. In closing, FY26 demonstrates the quality and resilience of Kelsian's business model and the progress we have made in positioning the group for its next phase. We delivered record earnings and strong cash generation, reduced leverage into our target range, and continued to simplify the portfolio. At the same time, we are well-placed for the next phase of growth, with credible growth platforms in the United States, the UK, and New Zealand, while retaining strong positions across our Australian markets. The priorities for FY27 are clear: deliver operationally, progress and complete the tourism portfolio divestment, maintain capital discipline, and convert the best opportunities in our growth pipeline into sustainable earnings and long-term shareholder returns.

Speaker #1: We delivered record earnings and strong cash generation, reduced leverage into our target range, and continue to simplify the portfolio. At the same time, we are well placed for the next phase of growth, with credible growth platforms in the United States, the UK, and New Zealand, while retaining strong positions across our Australian markets.

Graeme Legh: At the same time, we are well-placed for the next phase of growth, with credible growth platforms in the United States, the UK, and New Zealand, while retaining strong positions across our Australian markets. The priorities for FY27 are clear: deliver operationally, progress and complete the tourism portfolio divestment, maintain capital discipline, and convert the best opportunities in our growth pipeline into sustainable earnings and long-term shareholder returns. Finally, on behalf of the board and the management team, I would like to thank our people right across the group for their commitment to the transport services they provide to our customers and communities every day. With that, I will now hand back to Mel, who will facilitate any questions for Andrew and I. Thank you.

Speaker #1: The priorities for FY27 are clear: deliver operationally, progress and complete the tourism portfolio divestment, maintain capital discipline, and convert the best opportunities in our growth pipeline into sustainable earnings and long-term shareholder returns.

Speaker #1: Finally, on behalf of the Board and the management team, I would like to thank our people right across the Group for their commitment to the transport services they provide to our customers and communities every day.

Graeme Legh: Finally, on behalf of the board and the management team, I would like to thank our people right across the group for their commitment to the transport services they provide to our customers and communities every day. With that, I will now hand back to Mel, who will facilitate any questions for Andrew and I. Thank you.

Speaker #1: And with that, I will now hand back to Mel, who will facilitate any questions for Andrew and me. Thank you.

Speaker #2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Cameron McDonald with E&P. Please go ahead.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Cameron McDonald with ENP. Please go ahead.

Speaker #3: Good morning, guys. Questions from me. Just in terms of the tourism portfolio and the slight change to that, you've previously guided that the portfolio generated about $24 million, $25 million of EBITDA.

Cameron McDonald: Good morning, guys. Questions from me, just in terms of the tourism portfolio and the slight change to that. You have previously guided that the portfolio generated about AUD 24 million, AUD 25 million of EBITDA. If we are adjusting our expectations to now keep Rottnest, what is the adjustment to the group earnings that we should be expecting off the back of that?

Speaker #3: If we're readjusting our expectations to now keep Rottnest, what's the adjustment to the group earnings that we should be expecting off the back of that?

Graeme Legh: Thanks, Cameron. The Rottnest business, sorry, is pretty much in line with the rest of the portfolio in terms of its contribution. I think you can see that we've outlined the difference in the total consideration and the contribution that was expected from Rottnest, which is slightly under 10%, and that's similar from an earnings perspective.

Speaker #1: Thanks, Cameron. Look, the Rottnest portfolio is pretty much in line. The Rottnest business, sorry, is pretty much in line with the rest of the portfolio in terms of its contribution.

Speaker #1: So, I think you can see that we've outlined the difference in the total consideration and the contribution that was expected from Rottnest, which is slightly under 10%.

Speaker #1: And that's similar from an earnings perspective.

Speaker #3: Okay, awesome. And then just on two questions on AAHI, if I can. You've called out some benefits from the World Cup. Can you quantify that so we have an understanding of what the potential headwind next year actually looks like with that?

Cameron McDonald: Okay, awesome. Just two questions on AAAHI, if I can. You've called out some benefits from the World Cup. Can you quantify that so that we have an understanding of what the potential headwind next year actually looks like with that?

Graeme Legh: It was certainly a few million-dollar benefit directly out of the World Cup. Now, whether that's a direct headwind or not is to be seen. We certainly plan on getting utilization out of those assets that were used by the World Cup. But it was a nice bonus in FY26 with that peak in demand in that June period, which is typically when we see our charter services start to wind down for the year. Repeating that size of opportunity at that time of the year is probably more difficult looking at FY27 than was delivered in FY26.

Speaker #1: I mean, it was certainly a few million dollar benefit directly out of the World Cup. Now, whether that's a direct headwind or not remains to be seen.

Speaker #1: We certainly plan on getting utilization out of those assets that were used by the World Cup. But it was a nice bonus in FY26 with that peak in demand in that June period, which is typically when we see our charter services start to wind down for the year.

Speaker #1: So, repeating that size of opportunity at that time of the year is probably more difficult looking at FY27 than it was delivered in FY26.

Speaker #3: Okay, thank you. And then just staying on AAHI, you've got some good growth in that contract market and corporate market. When are you starting, or have you started, turning your mind to more public transport-type services?

Cameron McDonald: Okay, thank you. Just staying on AAAHI. You've got some good growth in that contract market and corporate market. When are you starting or have you started turning your mind to more public transport type services and contracts?

Speaker #3: And contracts?

Speaker #1: We certainly have—that's a focus. And we've had a pretty good track record delivering on those contracts since we bought the business in 2023, having renewed all of our existing relationships with some key state transport authorities in Texas, Colorado, and New Mexico.

Graeme Legh: We certainly have. That's a focus and we've had a pretty good track record delivering on those contracts since we bought the business in 2023, having renewed all of our existing relationships with some key state transport authorities, in Texas, Colorado, and New Mexico. So they certainly remain a focus and we continue to go after them. They probably do get a bit drowned out in the grand scheme of things when you compare them to the contribution that comes from those significant industrial sector clients in the Gulf area. That's probably why it all gets a bit drowned out, but we certainly have not lost focus of the opportunity in the transit world in the US for the AAAHI business.

Speaker #1: But they certainly remain a focus, and we continue to go after them. They probably do get a bit drowned out in the grand scheme of things when you compare them to the contribution that comes from those significant industrial sector clients in the Gulf area.

Speaker #1: That's probably why it all gets a bit drowned out. But we certainly have not lost focus on the opportunity in the transit world in the US for the AAHI business.

Speaker #3: Are there any contracts coming up that you'd potentially be interested in bidding on, either in the existing states or new sort of adjacent states?

Cameron McDonald: Are there any contracts coming up that you'd potentially be interested in bidding on, either in the existing states or new adjacent states?

Speaker #1: So our focus at the moment is very much within our existing geography, and there's a pretty steady pipeline of ongoing opportunities. The nature of the US business is that the contract size is probably smaller than we see in Australia, and the contract term is not quite as long.

Graeme Legh: Our focus at the moment is very much within our existing geography, and there's a pretty steady pipeline of ongoing opportunities. The nature of the US business is that the contract size is probably smaller than we see in Australia, and the contract term is not quite as long. So it's really an ongoing cycle of bidding for those opportunities. But our focus at this stage is on bidding for opportunities where we've got existing or adjacent operations as opposed to bidding in new cities where we don't have a presence.

Speaker #1: So, it's really an ongoing cycle of bidding for those opportunities. But our focus at this stage is on bidding for opportunities where we've got existing or adjacent operations, as opposed to bidding in new cities where we don't have a presence.

Speaker #3: Okay. Great. Thank you.

Cameron McDonald: Okay, great. Thank you.

Speaker #2: Thank you. Your next question comes from Orion Norozi with Jardin. Please go ahead.

Operator: Thank you. Your next question comes from Aryan Niroo with Jarden. Please go ahead.

Operator: Thank you. Your next question comes from Aryan Norozi with Jarden. Please go ahead.

Speaker #4: Hi, guys. Before I get into my questions, just a clarification on the last question, please. When you said the World Cup is a few million dollar benefit for this year, was that to the EBITDA line, or are you talking about the revenue line?

Aryan Niroo: Hi, guys. Before I get into my questions, just a clarification on the last question, please. When you said the World Cup is a few million dollar benefit for this year, was that to the EBITDA line or you are talking the revenue line?

Aryan Norozi: Hi, guys. Before I get into my questions, just a clarification on the last question, please. When you said the World Cup is a few million dollar benefit for this year, was that to the EBITDA line or you are talking the revenue line?

Graeme Legh: That was at EBITDA. Just to clarify, though, we are not expecting that to completely drop out. There will certainly be utilization from those assets this year. It is just whether we get that sort of peak in utilization at that exact same period like we had the benefit from FIFA this year.

Speaker #1: That was the EBITDA. I mean, just to clarify though, we're not expecting that to completely drop out. There will certainly be utilization from those assets this year.

Speaker #1: It's just whether we get that sort of peak in utilization at that exact same period, like we had the benefit from FIFA this year.

Speaker #4: Gotcha. So maybe a $2 or $3 million EBITDA, but not all of that winds out. Obviously, we're going to replace some of it, because the message is...

Aryan Niroo: Got you. So maybe AUD 2 million or AUD 3 million EBITDA, but not all of that winds out. Obviously, we are going to replace some of it is the message.

Aryan Norozi: Got you. So maybe AUD 2 million or AUD 3 million EBITDA, but not all of that winds out. Obviously, we are going to replace some of it is the message.

Graeme Legh: Yeah, correct. It doesn't just drop right off the cliff.

Speaker #1: Yeah, correct. Correct. It doesn't. It doesn't just drop right this year, yeah.

Speaker #4: Perfect. Just on my questions, in terms of, can you just talk through maybe for this year what the incremental EBITDA contribution was from the LNG projects as they've ramped up, and what the incremental benefit might look like into FY27, please?

Aryan Niroo: Perfect. Just on my questions, can you just talk through, maybe for this year, what the incremental EBITDA contribution was from the LNG projects that you've won ramping up and the incremental benefit into FY27, please? Just in terms of finishing to annualize, because obviously H1 FY26 was ramp-up mode, H2 more normal of FY26, and then FY27 is probably the full run rate for those two contracts.

Aryan Norozi: Perfect. Just on my questions, can you just talk through, maybe for this year, what the incremental EBITDA contribution was from the LNG projects that you've won ramping up and the incremental benefit into FY27, please? Just in terms of finishing to annualize, because obviously H1 FY26 was ramp-up mode, H2 more normal of FY26, and then FY27 is probably the full run rate for those two contracts.

Speaker #4: Just in terms of finishing to annualize, because obviously the first half of '26 was ramp-up mode, the second half—more normal—of '26, and then FY27 is probably the full run rate for those two contracts.

Speaker #1: Yeah, that's probably right, Ari. So, I mean, obviously a big component of the growth delivered in the international bus segment—which was, I think, 28% growth in EBITDA—a big proportion of that was driven by the ramp-up in those industrial sector contracts.

Graeme Legh: Yeah, that's probably right, Aryan. So obviously, a big component of the growth delivered in the international bus segment, which was, I think, 28% growth in EBITDA. A big proportion of that was driven by the ramp-up in those industrial sector contracts. Now, they probably ramped up or they did ramp up faster than expected during FY26, and we got a bigger earnings contribution out of those contracts than we expected when we were sitting here this time last year. What that means for FY27 is the growth rate. We're certainly expecting to moderate out of those contracts. There is still further growth to come, but the rate of growth is going to be at a much lower level than what was witnessed over the course of FY26. We do expect those new contracts to both reach full capacity at some point in FY27.

Speaker #1: Now, they probably ramped up, or they did ramp up, faster than expected during FY26, and we got a bigger earnings contribution out of those contracts than we expected when we were sitting here this time last year.

Speaker #1: What that means for FY27 is the growth rate we're certainly expecting to moderate out of those contracts. There is still further growth to come, but the rate of growth is going to be at a much lower level than what was witnessed over the course of FY26.

Speaker #1: We do expect those new contracts to both reach full capacity at some point in FY27, but that is dependent on the EPCs, the prime contractors, and their ability to continue to hire.

Graeme Legh: We do expect those new contracts to both reach full capacity at some point in FY27. That is dependent on the EPCs, the prime contractors, and their ability to continue to hire. So we're a bit beholden to how quickly they can hire the construction workforce as to how quickly we get to that full capacity. But sitting here today, we would expect to get to full capacity for both those contracts at some point during FY27.

Graeme Legh: That is dependent on the EPCs, the prime contractors, and their ability to continue to hire. So we're a bit beholden to how quickly they can hire the construction workforce as to how quickly we get to that full capacity. But sitting here today, we would expect to get to full capacity for both those contracts at some point during FY27.

Speaker #1: So, we are a bit beholden to how quickly they can hire the construction workforce, as to how quickly we get to that full capacity. But, sitting here today, we would expect to get to full capacity for both those contracts at some point during FY27.

Speaker #4: Gotcha. And back on the envelope, based on my just rough calcs, that should be another the LNG ramp-up in '27 on '26 should be another five to six million dollars of EBITDA.

Aryan Niroo: Got you. Back of the envelope, based on my just rough calcs, the LNG ramp-up in 2027 on 2026 should be another AUD 5 to 6 million of EBITDA. Is that roughly in the ballpark of how, am I thinking about that the right way?

Aryan Norozi: Got you. Back of the envelope, based on my just rough calcs, the LNG ramp-up in 2027 on 2026 should be another AUD 5 to 6 million of EBITDA. Is that roughly in the ballpark of how, am I thinking about that the right way?

Speaker #4: Is that roughly in the ballpark, or am I thinking about that the right way?

Speaker #1: Yeah, I mean, roughly. Probably not quite that high, but roughly, that's probably not a million miles away from the mark.

Graeme Legh: Yeah. Roughly, probably not quite that high, but roughly, that is probably not a million miles away from the mark.

Speaker #4: Gotcha. And then, last one, just in terms of oil prices—obviously, you've delivered a very strong result despite oil prices going up 50, 60 percent.

Aryan Niroo: Got you. Last one, just in terms of oil prices, obviously, you have delivered a very strong result despite oil prices going up 50% to 60% from a few months ago. To what extent are you factoring a headwind, net EBITDA headwind from oil prices into guidance for FY27? To what extent is that realistic versus just obviously provisioning for some uncertainty, rightly so?

Aryan Norozi: Got you. Last one, just in terms of oil prices, obviously, you have delivered a very strong result despite oil prices going up 50% to 60% from a few months ago. To what extent are you factoring a headwind, net EBITDA headwind from oil prices into guidance for FY27? To what extent is that realistic versus just obviously provisioning for some uncertainty, rightly so?

Speaker #4: From a few months ago, to what extent are you factoring a headwind net EBITDA, headwind from oil prices into guidance for FY27? And to what extent is that realistic versus just, obviously, provisioning for some uncertainty?

Speaker #4: Rightly so.

Graeme Legh: Yep. I think the result really demonstrates how limited the impact of oil prices is on our business as a whole. To deliver this result in an environment where we have seen oil prices move to the extent they have, given we are a very significant user of diesel, I think demonstrates the market how well our contracts protect us from movement in things like fuel price when you look at the group as a whole. Now, there are pockets of our business that are more exposed to oil prices. The big one of that is in the Marine & Tourism division, where we do not have that contractual protection in a number of our operations.

Speaker #1: Yep. So I think the result really demonstrates how limited the impact of oil prices is on our business as a whole. To deliver this result in an environment where we've seen oil prices move to the extent they have, given we're a very significant user of diesel, I think demonstrates to the market how well our contracts protect us from movements in things like fuel price, when you look at the Group as a whole.

Speaker #1: Now, there are pockets of our business that are more exposed to oil prices. The big one of those is in the marina tourism division, where we don't have that contractual protection in a number of our operations.

Speaker #1: And we certainly saw some headwinds in the final quarter of FY26 in those operations, both from higher input prices for our operation—the diesel—but also more generally, just in terms of reduced demand, given higher cost-of-living pressures on the consumer side.

Graeme Legh: And we certainly saw some headwinds in the final quarter of FY26 in those operations, both from higher input prices for our operation with diesel, but also more generally just in terms of reduced demand given higher cost of living pressures on the consumer side. Now, we are expecting that to continue for those parts of the Marine & Tourism business. So looking at that division on its own, there is certainly some headwinds there as we look towards FY27. But I think from a group perspective, we remain very comfortable that as a whole, our business is well protected from changes in oil prices or any further changes in oil prices moving forward.

Speaker #1: Now, we're expecting that to continue for those parts of the marina tourism business. So, looking at that division on its own, there are certainly some headwinds there as we look towards FY27.

Speaker #1: But I think from a group perspective, we remain very comfortable that, as a whole, our business is well protected from changes in oil prices or any further changes in oil prices moving forward.

Speaker #4: Gotcha. And sorry, very last one, if I can sneak one in. Just the Aussie bus EBITDA margins, they stepped up in the second half to about 11 and a half percent, and the first half was 11.

Aryan Niroo: Got you. And sorry, very last one, if I can sneak one in. Just the Aussie bus EBITDA margins, they stepped up in the H2 to about 11.5%, and the H1 was 11%, so you are making progress there. How do we think about the ramp-up into FY27? Should there be a further step-up aggressively in H1 FY27 above the 11.5% and then H2 further improves? Or is 11.5% probably the right run rate steady state for the business in FY27, please?

Aryan Norozi: Got you. And sorry, very last one, if I can sneak one in. Just the Aussie bus EBITDA margins, they stepped up in the H2 to about 11.5%, and the H1 was 11%, so you are making progress there. How do we think about the ramp-up into FY27? Should there be a further step-up aggressively in H1 FY27 above the 11.5% and then H2 further improves? Or is 11.5% probably the right run rate steady state for the business in FY27, please?

Speaker #4: So you're making progress there. How should we think about the ramp-up into FY27? Should there be a further step up progressively in the first half of '27 above the 11.5, and then a further improvement in the second half, or is 11.5 probably the right run rate steady state for the business in FY27, please?

Speaker #1: Yeah, I think 11 and a half is probably pretty good. Look, we want to keep pushing, and there still is improvement to be made out of that business, but it is probably more incremental.

Graeme Legh: Well, I think 11.5% is probably pretty good. Look, we want to keep pushing and there still is improvement to be made out of that business, but it is probably more incremental. And it is probably driven by delivering on some of the growth initiatives that the government has out there in terms of investment into the bus network. As those growth services come in, they come in at a higher margin than the baseline business, which over time gives us further incremental margin expansion. But I think looking at H2 FY26 into H1 FY27, not expecting any big changes either up or down from where that margin was for the H2.

Speaker #1: And it is probably driven by delivering on some of the growth initiatives that the government has out there in terms of investment into the bus network, as those growth services come in.

Speaker #1: They come in at a higher margin than the baseline business, which, over time, gives us further incremental margin expansion. But I think looking at second half FY26 into first half FY27, we're not expecting any big changes either up or down from where that margin was.

Speaker #4: So the previously mentioned issues so the previously mentioned issues, like the congestion and the EV delays, that sort of this margin reflects a resolution of that.

Aryan Niroo: So the previously mentioned issues like the congestion and the EV delays, this margin reflects the resolution of that, so we shouldn't be factoring any benefit from that flowing through?

Aryan Norozi: So the previously mentioned issues like the congestion and the EV delays, this margin reflects the resolution of that, so we shouldn't be factoring any benefit from that flowing through?

Speaker #4: So, we shouldn't be factoring any benefit from that flowing through.

Speaker #1: Yep. So, I think— I mean, I think there's still probably room to play out on the congestion side. Where we did get— did make material improvement in the second half of FY26 was on resolution of some of the delayed electrification projects.

Graeme Legh: Yep. I think there's still probably room to play out on the congestion side. We did make material improvement in the H2 FY26 on resolution of some of the delayed electrification projects with some of our major state governments. So, they've acknowledged those delays. They've started compensating us for the maintenance costs of maintaining the aging diesel fleet. Alongside that, some big projects, particularly in Sydney, are now nearing completion or have completed, which have allowed a significant number of new electric vehicles into service, which come with lower costs and obviously flow through to the bottom line and are driving some of that margin expansion that we saw in the H2 FY26.

Speaker #1: That's with some of our major state governments. So they have acknowledged those delays, and they've started compensating us for the maintenance costs of maintaining the aging diesel fleet.

Speaker #1: And alongside that, some big projects, particularly in Sydney, are now nearing completion or have completed, which have allowed a significant number of new electric vehicles to enter service. These come with lower costs and obviously flow through to the bottom line, driving some of that margin expansion that we saw in the second half of FY26.

Speaker #4: Perfect. Thanks, guys. I really appreciate it.

Aryan Niroo: Perfect. Thanks, guys. Really appreciate it.

Aryan Norozi: Perfect. Thanks, guys. Really appreciate it.

Speaker #2: Thank you. Your next question comes from Owen Burrell with RBC. Please go ahead.

Operator: Thank you. Your next question comes from Owen Birrell with RBC. Please go ahead.

Speaker #4: Morning, guys. Congratulations on a pretty solid result. I just wanted to ask, I guess, a further question or a follow-up question on AAHI. Very, very strong revenue result during the period.

Owen Birrell: Morning, guys, and congratulations on a pretty solid result. I just wanted to ask, I guess, a further question or follow-up question on AAAHI. Very, very strong revenue results during the period and obviously very strong EBITDA margin for the international group. I'm wondering if you can give us a sense of what the EBITDA margin's expanded by in the US alone, so that we can sort of split out what that US business interests Singapore and UK.

Speaker #4: And obviously, very strong EBITDA margin for the International Group. I'm wondering if you can give us a sense of what the EBITDA margins expanded by in the US alone, so that we can sort of split out what that US business did versus Singapore and the UK.

Graeme Legh: We do not split it out, but I think it is fair to say, Singapore and the UK were pretty much in line with previous periods. The incremental earnings and margin coming out of that international bus division were driven by changes in the US or improvements in the US.

Speaker #1: I mean, we don't split it out, but I think it's fair to say Singapore and the UK were pretty much in line with previous periods.

Speaker #1: So, the incremental earnings and margin coming out of that International Bus division were driven by changes in the U.S. or improvements in the U.S.?

Speaker #4: Okay, that's understood. And can I ask, on the CAPEX guidance that you've provided—I think $7 million for the UK—is that all for the Liverpool buses, or is there anything else in there for some of the other regions, or the proposed tenders that are coming through over the next sort of six to twelve months?

Owen Birrell: Okay, that is understood. Can I also ask on the CapEx guidance that you have provided, I think AUD 7 million for the UK, is that all for the Liverpool buses or is there anything else in there for some of the other regions or the proposed tenders that are coming through over the next six to 12 months?

Speaker #1: Yeah, there's the Liverpool buses, so there's some further buses we need to buy for those school bus contracts. And there's some further capital, we think, for some new contract—small contract bins in the UK.

Graeme Legh: Yeah, there are the Liverpool buses, so there are some further buses we need to buy for those school bus contracts. There is some further capital we think for some new contract, small contract wins in the UK.

Speaker #4: Can I ask—you mentioned that the buses for Liverpool, the Liverpool contract, and Jersey would be moved into an SPV structure. I noted that the SPV debt balance had reduced by almost $10 million.

Owen Birrell: Can I ask, you mentioned that the buses for Liverpool, the Liverpool contract and Jersey, would be moved into an SPV structure. I noted that the SPV debt balance had reduced almost about AUD 10 million. I am just wondering, firstly, what has come out of the SPVs, but also is it fair to assume that that AUD 7 million is going back into SPVs?

Speaker #4: I was just wondering, firstly, what's come out of the SPVs? But also, is it fair to assume that that $7 million is going back into the SPVs?

Speaker #1: Yeah. So the majority of it is only for Jersey, where the SPV structure will likely take effect. So there will be some assets transferred into the SPV structure for Jersey.

Graeme Legh: Yeah. The majority, it is only for Jersey, where the SPV structure will likely take effect. So there will be some assets transferred into the SPV structure for Jersey. Then on the remaining portfolio, it is the normal amortization that exists on those assets.

Speaker #1: And then, on the remaining portfolios, the normal amortization that exists on those assets.

Speaker #4: Okay. And just one final one from me, just on that capex theme. You've called out $11 million for US capex. Is it fair to assume that's all organic growth, or is there anything in there for any potential bolt-ons?

Owen Birrell: Okay. Just one final one for me, just on that CapEx theme. You have called out AUD 11 million for US CapEx. Is it fair to assume that is all organic growth, or is there anything in there for any potential bolt-ons?

Speaker #1: No. Yeah. All organic growth.

Graeme Legh: No, yeah. All organic growth.

Speaker #4: Okay. And in terms of potential bolt-ons, is there anything that is obvious at the moment, or is it very much sort of a wait and see?

Owen Birrell: Okay. In terms of potential bolt-ons, is there any things that are obvious at the moment, or is it very much sort of a wait and see?

Speaker #1: I mean, I think there are certainly some attractive opportunities in the U.S. that we're keeping a very close eye on. As we stand at the moment, there's no huge time pressure for us to rush out and do anything in the U.S.

Graeme Legh: I think there are certainly some attractive opportunities in the US that we are keeping a very close eye on. As we stand at the moment, there is no huge time pressure for us to rush out and do anything in the US, so the overall focus remains getting an outcome on the tourism portfolio. But we are certainly keeping a close eye on the key targets in the US. If there is a need to act on any of them sooner rather than later, we think we are in a position where we can do that.

Speaker #1: So the overall focus remains on getting an outcome on the true portfolio, but we're certainly keeping a close eye on the key targets in the US.

Speaker #1: And if there is a need to act on any of them sooner rather than later, we think we're in a position where we can do that.

Speaker #4: All very clear. Thank you.

Owen Birrell: All very clear. Thank you.

Speaker #2: Thank you. Your next question comes from Alan Franklin with Countercord. Please go ahead.

Operator: Thank you. Your next question comes from Allan Franklin with Canaccord. Please go ahead.

Speaker #4: Morning, Graham. Morning, Andrew. Thank you for your time. Just hoping to get a bit of colour. I know you referenced the L&G side of things ramped up better than expected over the course of the year.

Allan Franklin: Morning, Graeme. Morning, Andrew. Thank you for your time. Just hoping to get a bit of color. I know you referenced the LNG side of things ramped up better than expected over the course of the year. If you were sitting here last year versus now, just sort of frame perhaps what did not go as well as expected, what underperformed during the year, just sort of bridge that gap between what could have been low-ender guides coming to this point.

Speaker #4: If you were sitting here last year versus now, just sort of frame, perhaps, what didn't go as well as expected—what underperformed during the year.

Speaker #4: Just sort of bridge that gap between what could have been low-end guides coming to this point.

Speaker #1: Thanks. Is that in AAHI specifically, or?

Graeme Legh: Is that in AAAHI specifically or generally?

Allan Franklin: No, no, sorry. Just broadly across the group, just sort of noting we obviously have hit above guide, probably carried by LNG and perhaps KI pushing back. But looking back, what perhaps didn't work, didn't underperform in FY26 that then you hope carries forward stronger?

Speaker #4: No, no, sorry. Just broadly across the group—just sort of noting where, obviously, we have hit above guidance, probably carried by L&G, and perhaps KI pushing back.

Speaker #4: But yeah, looking back, what perhaps didn't work or underperformed in Q4 that you hope carries forward stronger?

Speaker #1: Yes. I mean, I think if you go back to this time last year, I think certainly at least in the first half, Australian Bus underperformed where we expected.

Graeme Legh: Yep. I think if you go back to this time last year, I think certainly at least in the H1, Australian bus underperformed where we expected. We continued to see that margin deterioration in the H1 when we were sort of hoping that we'd seen the worst of it at the back end of FY25. Now, pleasingly, we managed to turn that around, or the guys managed to turn that around due to some changes in the H2. So I think we got that back on track. But over the full year, probably was a bit under where we're expecting, just purely on that margin side, given some of those cost-based pressures around maintaining older vehicles and operating performance associated with congestion and other things around the network. So, that was certainly one of them. And then, Marine and Tourism.

Speaker #1: We continue to see that margin deterioration in the first half, when we were sort of hoping that we'd seen the worst of it at the back end of FY25.

Speaker #1: Now, pleasingly, we managed to turn that around, or the guys managed to turn that around, due to some changes in the second half. So I think we got that back on track.

Speaker #1: But over the full year, we were probably a bit under where we were expecting, just purely on that margin side, given some of those cost-based pressures around maintaining older vehicles and operating performance associated with congestion and other things around the network.

Speaker #1: So that was certainly one of them. And then, Marina Tourism—I mean, Marina Tourism came off a very, very strong FY25 and it started FY26 very positively, but there were certainly some impacts from March onwards as we started to feel the impact of oil price movements and what that did to consumer sentiment, particularly for the more tourism-exposed parts of Marina Tourism.

Graeme Legh: So, that was certainly one of them. And then, Marine and Tourism. I mean, Marine and Tourism came off a very strong FY25, and it started FY26 very positively. But there were certainly some impacts from March onwards as we started to feel the impact of oil price movements and what that did to sort of consumer sentiment, particularly for the more tourism exposed parts of Marine and Tourism. So I think, Marine and Tourism, we're pretty pleased we actually got a better result than FY25 and FY26. But, if you go back to March this year, that could have actually done a fair bit better if the world hadn't changed back in March. So they're probably the two areas. I think it's fair to say, internationally, UK and Singapore did as expected.

Graeme Legh: I mean, Marine and Tourism came off a very strong FY25, and it started FY26 very positively. But there were certainly some impacts from March onwards as we started to feel the impact of oil price movements and what that did to sort of consumer sentiment, particularly for the more tourism exposed parts of Marine and Tourism. So I think, Marine and Tourism, we're pretty pleased we actually got a better result than FY25 and FY26. But, if you go back to March this year, that could have actually done a fair bit better if the world hadn't changed back in March. So they're probably the two areas. I think it's fair to say, internationally, UK and Singapore did as expected. Both had pretty, solid performances. And then the US was the one where we certainly did better than expected, given the faster ramp-up of those two new LNG contracts.

Speaker #1: So, I think with Marina Tourism, we're pretty pleased we actually got a better result than FY25 and FY26. But if you go back to March this year, that could have actually done a fair bit better if the world hadn't changed back in March.

Speaker #1: So they're probably the two areas. I think it's fair to say internationally, the UK and Singapore did as expected—both had pretty solid performances. And then the US was the one where we certainly did better than expected, given the faster ramp-up of those two new L&G contracts.

Graeme Legh: Both had pretty, solid performances. And then the US was the one where we certainly did better than expected, given the faster ramp-up of those two new LNG contracts.

Speaker #4: Thank you. And then just perhaps looking into that F27 guide—yeah, I appreciate we've touched on AAHI in a bit of detail so far—but perhaps, where are the conservative or sort of cautious elements within that F27 guide?

Allan Franklin: Thank you. Then just perhaps looking into that FY27 guide. Yeah, appreciate we have touched on AAAHI in a bit of detail so far. But perhaps where are the conservative or the sort of cautious elements within that FY27 guide? I assume it sort of sits with an M&T again, given how we sort of came through the Q4. I assume there are levels of conservatism around Bankstown and redeploying those assets. Is that sort of fair?

Speaker #4: I assume it sort of sits within M&T again, given how we sort of came through the fourth quarter. I assume there are levels of conservatism around Bankstown and redeploying those assets.

Speaker #4: Is that sort of fair?

Speaker #1: Yeah. I mean, you pretty much hit the nail on the head there, Alan. So Marina Tourism, as we sort of called out, had a bit of pretty soft final quarter of FY26 and probable expectations are that probably continues barring sort of some material external shift.

Graeme Legh: Yeah. I mean, you pretty much hit the nail on the head there, Allan. So, Marine and Tourism, as we sort of called out, had a bit of pretty soft final quarter of FY26, and what expectations are, that probably continues, barring some material external shift. So that is probably the one area. Australian Bus pretty comfortable where the margin got to, but we are expecting, as we call out in the presentation, some further growth in some of our key markets off the back of some announcements of government, about investments into bus networks. Now, the timing of that growth is a bit uncertain. The earlier that happens, the better for us, both in terms of the incremental margin from the growth services, but the change in the network gives us a chance to find efficiencies across the entire network.

Speaker #1: So that's probably the one area. Australian bus, pretty comfortable where the margin got to. But we are expecting, as we called out in the presentation, some further growth in some of our key markets off the back of some announcements by government about investments into bus networks.

Speaker #1: Now, the timing of that growth is a bit uncertain. The earlier that happens, the better for us, both in terms of the incremental margin from the growth services, and because the change in the network gives us a chance to find efficiencies across the entire network.

Graeme Legh: The change in the network gives us a chance to find efficiencies across the entire network. So, the more of the year we have got that to play with, the better. So the timing of those growth services does have a bit of an impact. Then in the US, as flagged in one of the earlier questions, we are a bit beholden to the EPCs, the prime contractors, in terms of the further ramp up from our industrial contracts. How quickly they can employ their construction workforce really drives how quickly we get to the full complement of buses operating on those contracts. So that is a bit uncertain, and some of the guidance range takes that into account in terms of that potentially taking a bit longer than we might expect.

Speaker #1: So, the more of the year we've got to play with, the better. So, the timing of those growth services does have a bit of an impact.

Graeme Legh: So, the more of the year we have got that to play with, the better. So the timing of those growth services does have a bit of an impact. Then in the US, as flagged in one of the earlier questions, we are a bit beholden to the EPCs, the prime contractors, in terms of the further ramp up from our industrial contracts. How quickly they can employ their construction workforce really drives how quickly we get to the full complement of buses operating on those contracts. So that is a bit uncertain, and some of the guidance range takes that into account in terms of that potentially taking a bit longer than we might expect.

Speaker #1: And then in the US, as flagged in one of the earlier questions, we are a bit beholden to the EPCs, the prime contractors, in terms of the further ramp-up from our industrial contracts. How quickly they can employ their construction workforce really drives how quickly we get to the full complement of buses operating on those contracts.

Speaker #1: So that is a bit uncertain, and some of the guidance range takes that into account in terms of that potentially taking a bit longer than we might expect.

Speaker #4: Super helpful. Thank you. Just one other one on corporate costs. Any sort of colour and sort of look forward on that noting, yeah, call it 40-odd million for the year.

Allan Franklin: Super helpful. Thank you. Just one other one on corporate costs. Any sort of color into the look forward on that, noting, yeah, call it AUD 40 odd million for the year. Are we thinking that AUD 12 million is expensed and on top of that? Or what are the gives and takes for corporate, please?

Speaker #4: Are we thinking that $12 million is expensed and on top of that, or what are the gives and takes for corporate, please?

Speaker #3: Yeah, so the $12 million is on top of that, Alan. So that's below the line. And corporate costs will be pretty stable now at these sorts of levels.

Graeme Legh: Yeah. The 12 million is on top of that, Allan. So that is below the line. Corporate costs will be pretty stable now at these sorts of levels.

Speaker #4: Helpful. Thank you.

Allan Franklin: Helpful. Thank you.

Speaker #2: Thank you. Your next question comes from James Wilson with Macquarie. Please go ahead.

Operator: Thank you. Your next question comes from James Wilson with Macquarie. Please go ahead.

Speaker #5: Hi, guys. Thanks for taking my question. Just on the UK, can you speak to us about the materiality of the earnings from the contract wins over there?

James Wilson: Hi, guys. Thanks for taking my questions. Just on the UK, can you speak to us about maybe the materiality, the earnings of the contract wins over there, and also any other UK opportunities that are on your immediate radar? Kelsian Group just acquired a regional bus operator in the region.

Speaker #5: And also, any other UK opportunities that are on your immediate radar, consciously, just acquired original bus operator in the region?

Speaker #1: Yeah, thanks, James. Look, I mean, I think we announced in the announcement of the Liverpool contracts, you can see the scale of them. So, from a group perspective, these initial contract wins are not material and are not going to move the dial.

Graeme Legh: Yep. Thanks, James. Look, I think we announced in the announcement of the Liverpool contracts, you can see the scale then. From a group perspective, these initial contract wins are not material and are not going to move the dial. But what they do do is build credibility for the team. We are now, from what I understand, one of only three companies to have won one of the franchise contracts in regional UK. So, making us one of those three as the market continues to go through the structural change and we continue to see the consolidation of the operators in regional UK, into the various franchise networks. That's what we want to be part of. That's why that initial contract win was so important.

Speaker #1: But what they do is build credibility for the team. We are now, from what I understand, one of only three companies to have won one of the franchise contracts in regional UK.

Speaker #1: So, making us one of those three as the market continues to go through the structural change, and we continue to see the consolidation of the operators in regional UK into the various franchise networks.

Speaker #1: That's what we want to be part of, so that's why that initial contract win was so important. We've now got a seat at the table both with the authority where we won those contracts in Liverpool, but also when we go to other authorities around regional UK and have the ability to point to a contract win in Liverpool to give them confidence that we can do the job.

Graeme Legh: We've got a seat at the table, both with the authority where we won those contracts in Liverpool, but also when we go to the other authorities around regional UK and have the ability to point to a contract win in Liverpool to give them confidence that we can do the job, just as well and hopefully better than some of the big incumbent UK regional bus operators. That's the real benefit of the contracts that have been announced. As Andrew mentioned, we think we're in a good spot for further contract wins off the back of those contracts that were announced in Liverpool.

Speaker #1: As well, and hopefully better than some of the big incumbent UK regional bus operators. So that's the real benefit of the contracts that have been announced, and as Andrew mentioned, we think we're in a good spot for further contract wins off the back of those contracts that were announced.

Speaker #1: In Liverpool. In terms of other upcoming opportunities, we try to put it out in one of the slides to give a bit more colour.

Graeme Legh: In terms of other upcoming opportunities, we try to put it out in one of the slides to give a bit more color, but there is a significant wave of opportunities really over the next six months and certainly over the next 12 months, with at least 2,000 buses going through our franchise process. We're into tranche 2 of Liverpool, so the contracts that we were awarded were part of tranche 1. There's a separate tranche 2 in Liverpool, which is about 650 buses. In South Yorkshire and West Yorkshire, they're part of their processes, and there's about 700 buses across Yorkshire. The Midlands and Wales would be the next ones off the bat, and there's another close to 1,000 buses across those two that are going to be in the market in the next 12 months.

Speaker #1: But there is a significant wave of opportunities, really, over the next six months, and certainly over the next 12 months, with at least 2,000 buses going through a franchise process.

Graeme Legh: There is a significant wave of opportunities really over the next six months and certainly over the next 12 months, with at least 2,000 buses going through our franchise process. We're into tranche 2 of Liverpool, so the contracts that we were awarded were part of tranche 1. There's a separate tranche 2 in Liverpool, which is about 650 buses. In South Yorkshire and West Yorkshire, they're part of their processes, and there's about 700 buses across Yorkshire. The Midlands and Wales would be the next ones off the bat, and there's another close to 1,000 buses across those two that are going to be in the market in the next 12 months. Very significant pipeline for us to participate in.

Speaker #1: We're into tranche two of Liverpool. The contracts that were awarded were part of tranche one. There's a separate tranche two in Liverpool, which is about 650 buses.

Speaker #1: In South Yorkshire and West Yorkshire, they've started their processes. And there's about 700 buses across Yorkshire, and then the Midlands and Wales would be the next ones off the bat.

Speaker #1: And there's another close to 1,000 buses across those two that are going to be in the market in the next 12 months. So, a very significant pipeline.

Graeme Legh: Very significant pipeline for us to participate in, and we think given our presence in those markets and incumbency's position, particularly in Liverpool and in Wales, we're in a good spot to continue to pick up more contracts.

Speaker #1: For us to participate in. And we think, given our presence in those markets and our incumbency position, particularly in Liverpool and in Wales, we're in a good spot to continue to pick up more contracts.

Graeme Legh: We think given our presence in those markets and incumbency's position, particularly in Liverpool and in Wales, we're in a good spot to continue to pick up more contracts.

Speaker #4: That's clear. Thank you.

James Wilson: That is clear. Thank you.

Speaker #2: Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Operator: Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We will now pause a moment to allow for any final questioners to register. Thank you. We are showing no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker #2: We'll now pause a moment to allow for any final questioners to register. Thank you. We are showing no further questions at this time, and that does conclude our conference for today.

Browse all earnings call transcripts

Q4 2026 Kelsian Group Ltd Earnings Call

Request TrialDemo

Kelsian Group

Earnings