Aussie Broadband (ASX:ABB) Shares Are Dropping Today. Here's What's Happening

Sonal Goyal

24 August 2026 04:13 PM AEST

Aussie Broadband (ASX:ABB) Shares Are Dropping Today. Here's What's Happening

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Aussie Broadband (ASX:ABB) shares fell 5.84% to $4.76 on 24 August 2026 after the company released its FY26 full-year results.
Underlying EBITDA increased 19.6% to $165.3 million, while Revenue rose 9.2% to $1,295.4 million.
On-net broadband connections exceeded 1.11 million at 30 June 2026, up 41%, with NBN Market Share increasing 3.7 percentage points to 12.1%.
The company announced a share buyback of up to $115 million and issued FY27 Underlying EBITDA guidance of $205 million to $215 million.

Aussie Broadband Limited (ASX:ABB) shares declined 5.84%, or $0.30, to $4.76 on 24 August 2026. Recently, the company released its full-year results for the period ended 30 June 2026 (FY26). The results showed accelerated Earnings growth and operating cash flow, alongside strategic transactions the company said had repositioned its portfolio for its next phase of growth.

Underlying EBITDA rose 19.6% to $165.3 million, while Underlying EPSA increased 25.8% to 23.9 cents. Revenue for the year came in at $1,295.4 million, up 9.2%, driven by organic growth across all three of the company's operating segments.

Connections Growth and Market Share Gains

On-net broadband connections exceeded 1.11 million at 30 June 2026, an increase of 323,000, or 41%, on the prior corresponding period, including connections from the migration of More and Tangerine services. The company's NBN market share, excluding satellite services, increased 3.7 percentage points to 12.1%.

Mobile connections also grew, with 48,000 additions during FY26 bringing the total to 263,000 services, up 22% on the prior comparative period. Reported NPAT for the year was $35.3 million, which included a loss after tax of $17.2 million relating to the divestment of the Digital Sense Hosting business, a profit after tax of $4.4 million from the divestment of Buddy Telco, and $4.4 million in one-off costs related to mergers, acquisitions and customer onboarding. Underlying NPAT, which excludes these items, was $52.4 million, up 41.8% on the prior corresponding period.

Strategic Transactions, Cash Flow and FY27 Outlook

During FY26, Aussie Broadband completed a series of strategic transactions, including the migration of More and Tangerine connections in June 2026, the Acquisition of AGL Telco with an accompanying long-term Partnership with AGL, and the acquisition of Nexgen to strengthen its small and medium Business capability. The company also completed the divestments of Buddy Telco and Digital Sense Hosting during the second half of FY26.

Operating cash flow increased 42.5% to $167.2 million, with a cash conversion ratio of 101.2%, up from 84.9% in FY25. The company's net Leverage Ratio stood at 0.9x. The Board declared a fully franked FY26 Dividend of 6.0 cents per share, up 50% on the prior year, including a final dividend of 3.6 cents per share. The company also announced an on-market share buyback of up to $115 million.

For FY27, Aussie Broadband is guiding for Underlying EBITDA of between $205 million and $215 million, representing growth of 24% to 30% on the prior year, and expects Capital Expenditure of between $60 million and $65 million, noting inflationary pressures in technology hardware markets. As at 19 August 2026, the company had added 11,000 net new broadband connections since 1 July 2026, excluding More, Tangerine and AGL Telco connections.

Conclusion

Aussie Broadband reported growth across revenue, EBITDA, underlying NPAT and Operating Cash Flow in FY26, supported by organic connections growth and a series of completed strategic transactions, including the AGL Telco acquisition and the More and Tangerine migrations. The company also increased its dividend and announced a new share buyback. Despite these gains, the share price declined in trading on 24 August 2026. Management's FY27 guidance points to continued earnings growth as the company shifts its focus from completing transactions to realising their benefits.

FAQs

Q: Why did Aussie Broadband (ASX:ABB) shares fall after the FY26 results?

A: Shares fell 5.84% on 24 August 2026 despite reported growth in EBITDA, revenue and connections; the announcement does not detail the specific cause of the day's share price movement.

Q: How much did Aussie Broadband's Underlying EBITDA grow in FY26?

A: Underlying EBITDA increased 19.6% to $165.3 million.

Q: How many broadband connections did Aussie Broadband have at the end of FY26?

A: On-net broadband connections exceeded 1.11 million at 30 June 2026, up 41% on the prior year.

Q: What is Aussie Broadband's guidance for FY27?

A: The company is guiding for FY27 Underlying EBITDA of $205 million to $215 million, representing growth of 24% to 30% on FY26.

Q: Did Aussie Broadband increase its dividend?

A: Yes, the company declared a fully franked FY26 dividend of 6.0 cents per share, up 50% on the prior year.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.