Key Highlights

  • Revenue rose 9.2% to A$1,295.4 million for the year to 30 June 2026.
  • Underlying NPAT rose 41.8% to A$52.4 million, while reported NPAT rose 7.5% to A$35.3 million.
  • The full-year Dividend was 6.0 cents per share, up 50%, and a buy-back of up to A$115 million was launched.
  • FY27 underlying EBITDA guidance of A$205 million to A$215 million relies on completing the AGL migration.

How does a telecommunications challenger turn a string of acquisitions into earnings? That is the question Aussie Broadband (ASX:ABB) set out to answer with its FY26 result on 24 August 2026. The company reported higher revenue, a 42% rise in Underlying Profit and a larger dividend, and told the market that its focus is now shifting from buying customers to capturing the benefits of scale.

The FY26 result in numbers

For the year ended 30 June 2026, Aussie Broadband reported Revenue of A$1,295.4 million, up 9.2%. Underlying EBITDA was A$165.3 million, up 19.6%, and underlying net profit after tax was A$52.4 million, up 41.8%. The gap between underlying and reported profit is worth noting: underlying figures exclude items such as Acquisition and integration costs, so reported profit is the cleaner measure of what shareholders retained.

The final dividend was 3.6 cents fully franked, bringing the full-year dividend to 6.0 cents, up 50%.

What drives the revenue

Aussie Broadband sells broadband, mobile, voice and Business services. Most consumer revenue comes from National Broadband Network (NBN) connections that it resells, plus a growing mobile base and its own fibre. Mobile connections rose 48,000 to 263,000, up 22%.

Much of that growth came from acquisitions rather than organic wins. The company completed the acquisitions of AGL's telco customer base and Nexgen, which strengthened its small and medium business capability, and finalised the migration of More and Tangerine connections in June 2026. It also divested Buddy Telco and Digital Sense. Since 1 July 2026, the company said it added over 120,000 broadband connections through organic growth and migrations, though excluding More, Tangerine and AGL, net new connections were around 11,000.

Acquired and migrated customers lift reported connection numbers, but they also carry churn risk when pricing changes or service migrations occur. The company itself flagged a short-term dip for More and Tangerine tied to migration, price increases and competitive pressure, and expects connections to return to growth in the second quarter of FY27.

Guidance and the integration agenda

For FY27 Aussie Broadband guided to underlying EBITDA of A$205 million to A$215 million, growth of 24% to 30%, with Capital Expenditure of A$60 million to A$65 million. The AGL migration is on track to complete in the second quarter of FY27. This is management guidance, and it relies on those migrations finishing smoothly and on customers staying.

That makes execution of the AGL migration the single most important operational item of the year.

The company has said it is moving to a phase of using its scale and customer acquisition channels. If that works, fixed costs such as network, support and technology should be spread over a larger base, lifting margins. If it does not, the extra customers could dilute service quality.

Competitive landscape

Aussie Broadband competes with Telstra, Optus, TPG Telecom, Superloop and numerous smaller NBN resellers. The NBN reseller market is defined by thin wholesale margins, so scale and service differentiation are central. The company has historically positioned itself on Customer Service and has invested in its own fibre and business offerings to earn more per customer.

Risks to monitor

Migration execution. The AGL migration, due by the second quarter of FY27, is complex and customers can leave if service is disrupted.

Price increases and churn. Increases implemented on acquired brands can slow connection growth.

Competition. Large incumbents and fixed wireless alternatives limit pricing power.

Wholesale volumes. The company noted wholesale volumes eased slightly after June.

Capital allocation. The buy-back and dividends need to be balanced against network investment.

Underlying versus reported earnings. Differences between the two can persist while integration continues.

What to watch

The first-half FY27 result, expected around February 2027, should show how the migrations contributed. Shareholders may also watch the pace of the buy-back, the trend in organic connection growth excluding migrations, mobile growth and any further portfolio changes.