Tourism Holdings (ASX:THL) FY26 Results: Revenue Falls, Earnings and Dividend Rise

Sonal Goyal

25 August 2026 10:03 AM AEST

Tourism Holdings (ASX:THL) FY26 Results: Revenue Falls, Earnings and Dividend Rise

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Key Highlights

Total Revenue fell 5% to $852.9 million, despite an 11% increase in sale of services revenue to $517.5 million.
Underlying NPAT from continuing operations rose 34% to $46.1 million, while statutory NPAT moved from a $14.1 million loss to a $39.9 million profit.
The full-year Dividend increased 62% to 10.5 cents per share, including a final dividend of 7.5 cents per share.
Net Debt declined to $436 million, while two non-binding Takeover proposals remain before the Board at $3.10 and $3.30-$3.40 per share.

Tourism Holdings (ASX:THL) has reported a mixed but materially improved financial performance for the year ended 30 June 2026, with rental operations generating higher services revenue while total group revenue declined. The company’s results reflect the impact of portfolio changes, including the sale of its UK & Ireland business, alongside growth in rental activity and continued cost and capital-management measures. On a continuing-operations basis, underlying NPAT increased 34% to $46.1 million, while statutory NPAT was $39.9 million compared with a statutory loss of $14.1 million in FY25.

Revenue Mix and Rental Performance

Total revenue declined 5% to $852.9 million, marking a notable contraction at the group level even as the core rental-related revenue stream expanded. Sale of services revenue, primarily rentals, increased 11% to $517.5 million. The increase was supported by fleet growth and an improvement in revenue per available rental vehicle, or RevPARV.

The average rental fleet increased 11.5%, while the closing rental fleet rose 10% to 8,587 vehicles. RevPARV increased 1% to $58,000. These figures indicate that the rental Business accounted for an increasing portion of the company’s operating activity during the year.

The difference between the decline in total revenue and the increase in services revenue reflects changes in the company’s business portfolio and revenue composition. The divestment of the UK & Ireland business on 31 March 2026 also means FY26 continuing-operations comparisons have been restated, while balance-sheet measures remain on a total-group basis.

Profitability and Cash Flow

Profitability improved materially during FY26. Underlying NPAT from continuing operations increased 34% to $46.1 million, while statutory NPAT from continuing operations moved from a $14.1 million loss in FY25 to a $39.9 million profit in FY26.

The company also reported a 67% increase in net operating Cash Flow to $67.3 million, indicating higher cash generation from ongoing operations during the reporting period.

The improvement followed a year of operational restructuring and cost measures. Tourism Holdings consolidated Australasian Manufacturing into Hamilton, closed its Brisbane factory, exited two loss-making Australian dealerships and implemented labour, corporate and digital cost initiatives. Management reported approximately $5 million of underlying savings from labour, corporate and digital measures, while North American labour, fleet and procurement synergies also progressed.

Balance Sheet and Capital Returns

The company ended FY26 with net debt of $436 million, down from $492 million a year earlier. On a four-week normalised basis, net debt was $453 million. Pre-IFRS 16 Leverage stood at 2.32 times, while the Equity ratio improved to 41%.

Return on funds employed from continuing operations increased to 8.7% from 7.6% in FY25. Despite the improvement, the measure remains below the company’s stated through-the-cycle target of 15%, leaving a gap between current capital productivity and its longer-term objective.

Shareholders are set to receive a higher dividend. The Board declared a final FY26 dividend of 7.5 cents per share, bringing the full-year dividend to 10.5 cents per share, up 62% from FY25. The full-year payout represents approximately 50% of underlying NPAT from continuing operations.

The dividend Record Date is 18 September 2026, with payment scheduled for 2 October 2026. The final dividend is 100% imputed and 10% franked.

FY27 Outlook and Takeover Approaches

The outlook contains both improving operating indicators and near-term uncertainty. Tourism Holdings said momentum entering the second half of FY26 was disrupted by the Middle East conflict, which affected international travel and fuel pricing and created a forward-booking gap that the company does not expect to fully recover.

Continued weakness in RV sales markets has also affected the Earnings step-up previously expected for FY27. This provides an important counterpoint to the improvement recorded across several FY26 financial measures.

Recent booking trends have nevertheless improved. New Zealand intake over the latest four weeks was about 40% above the prior corresponding period, while Australia was about 15% higher. Canada is tracking toward record rental revenue for its 2026 summer season, and recent US intake was approximately 45% higher than the prior corresponding period.

The company continues to identify rental fleet and revenue growth, manufacturing and procurement benefits, cost initiatives and a potential cyclical recovery in RV sales as drivers supporting its $100 million underlying NPAT goal. However, management has indicated that the timing of that outcome has been affected by current market conditions.

Two non-binding indicative takeover proposals are currently before the Board. A revised proposal from the BGH consortium is $3.10 per share, while a competing proposal from a party regarded by the Board as a credible strategic acquirer is between $3.30 and $3.40 per share.

Both proposals remain subject to conditions and due diligence. The company has stated that there is no certainty either proposal will result in a transaction, meaning the approaches remain an ongoing corporate development rather than a completed transaction.

Conclusion

Tourism Holdings’ FY26 results show a company undergoing portfolio and operational change, with total revenue down 5% but rental services revenue, underlying NPAT, Operating Cash Flow and the dividend all increasing. Lower net debt and a higher equity ratio provide a different balance-sheet position from a year earlier, although ROFE remains below the company’s 15% target and RV sales markets remain weak. The disruption to booking momentum also clouds the pace of earnings growth in FY27. At the same time, recent rental booking data and the two takeover proposals represent important developments as Tourism Holdings enters the next financial year.

FAQs

Q: What was Tourism Holdings’ FY26 total revenue?

A:Total revenue was $852.9 million, down 5% from the prior-year comparable figure on the continuing-operations basis used for the income statement.

Q: Did Tourism Holdings’ underlying NPAT increase in FY26?

A:Yes. Underlying NPAT from continuing operations increased 34% to $46.1 million.

Q: What happened to the FY26 dividend?

A:The full-year dividend increased 62% to 10.5 cents per share, comprising a final dividend of 7.5 cents per share.

Q: How did Tourism Holdings’ net debt change?

A:Net debt decreased to $436 million at 30 June 2026 from $492 million a year earlier. On a four-week normalised basis, it was $453 million.

Q: What takeover proposals are before the Board?

A:Two non-binding indicative proposals are being considered: $3.10 per share from the BGH consortium and $3.30 to $3.40 per share from another party described by the Board as a credible strategic acquirer. Both remain subject to conditions and due diligence.

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