Highlights

  • Aussie Broadband lifted FY26 underlying EBITDA 19.6% to A$165.3 million.
  • The company launched an on-market share buy-back of up to A$115 million.
  • Management targets A$205 million to A$215 million of underlying EBITDA in FY27.
  • AGL Telco migration and competitive pressure will test the next leg of Margin growth.

Aussie Broadband (ASX:ABB) has moved from building scale to proving that scale can pay. After a year of acquisitions, customer migrations and faster Earnings growth, the telco has put up to A$115 million behind an on-market share buy-back while setting a sharply higher FY27 earnings target. That combination makes the next year unusually revealing: cash returns signal balance-sheet confidence, but the operating case still rests on converting a much larger customer base into stronger margins.

FY26 Built the Launchpad

The numbers give the company room to make that bet. FY26 Revenue rose 9.2% to A$1.2954 billion, while underlying EBITDA climbed 19.6% to A$165.3 million. Underlying net profit after tax increased 41.8% to A$52.4 million, and Operating Cash Flow advanced 42.5% to A$167.2 million. Net Leverage finished at 0.9 times.

Operating scale expanded just as quickly. On-net broadband connections passed 1.11 million, up 41%, while mobile connections rose 22% to 263,000. The company also lifted its FY26 fully franked ordinary Dividend 50% to 6.0 cents per share. Together, those figures show earnings and cash generation growing faster than revenue rather than simply tracking a bigger subscriber base.

The Buy-Back Raises the Stakes

The Capital return adds another layer to that story. Aussie Broadband announced an on-market buy-back of up to A$115 million alongside its FY26 result, with ASX filings showing purchases under the program in September. A buy-back can reduce the share count and improve per-share outcomes if executed at attractive prices, but it does not remove operating risk.

That matters because FY27 guidance is ambitious. Management expects underlying EBITDA of A$205 million to A$215 million, implying 24% to 30% growth, with Capital Expenditure of A$60 million to A$65 million. The target assumes benefits from recent transactions and continued organic momentum, so execution now matters more than deal-making.

Integration Becomes the Main Test

The clearest near-term marker is AGL Telco. Its broadband and mobile migration began in July and is expected to finish in the second quarter of FY27. More and Tangerine migrations were completed in June 2026, while the Nexgen Acquisition also broadens the group’s Business exposure.

The pressure point is that growth is not frictionless. Wholesale volumes eased slightly after June as migrations, price increases and competition affected More and Tangerine, even though the underlying wholesale base continued to grow. Broadband remains a competitive market, and alternative fixed-wireless and 5G services add another long-term challenge.

What Investors Should Watch Next

The first-half FY27 result should provide the cleanest test of whether the strategy is translating into earnings. Investors can watch AGL Telco migration completion, organic broadband additions, wholesale stabilisation and progress toward the A$205 million to A$215 million EBITDA range.

Aussie Broadband entered the S&P/ASX 200 in December 2025, raising its profile as its operating footprint expanded. The buy-back strengthens the confidence signal, but the Investment narrative now turns on delivery: integrate the acquired customers, protect growth through a competitive market and turn scale into durable margin expansion.