Key Highlights

• Aussie Broadband reported its FY26 results on 24 August 2026, covering the 12 months to 30 June 2026.

• Revenue rose 9.2 per cent to $1,295.4 million, underlying EBITDA climbed 19.6 per cent to $165.3 million, and underlying net profit after tax increased 41.8 per cent to $52.4 million.

• Operating Cash Flow rose 42.5 per cent to $167.2 million.

• Reported net profit after tax was $35.3 million, below the underlying figure.

Why is Aussie Broadband (ASX:ABB) guiding to a much larger Earnings figure in the 2027 financial year? Because a run of acquisitions and customer migrations has pushed its broadband base past 1.11 million on-net connections, and management expects the full-year contribution of that larger base to lift underlying EBITDA to between $205 million and $215 million, up from $165.3 million in FY26.

The central development

Aussie Broadband reported its FY26 results on 24 August 2026, covering the 12 months to 30 June 2026. Revenue rose 9.2 per cent to $1,295.4 million, underlying EBITDA climbed 19.6 per cent to $165.3 million, and underlying net profit after tax increased 41.8 per cent to $52.4 million. Operating cash flow rose 42.5 per cent to $167.2 million.

Reported net profit after tax was $35.3 million, below the underlying figure.

The guidance matters because it implies growth of roughly 24 to 30 per cent in underlying EBITDA. That is guidance, not a reported outcome, and it depends on migrations being completed and customers staying with the company once they have moved.

What the company does

Aussie Broadband is an Australian telecommunications provider. It sells National Broadband Network (NBN) services to households and businesses, along with mobile plans, voice, and managed network and cloud services for Business and enterprise customers. It also supplies wholesale services to other providers. Earlier acquisitions, including Over the Wire and Symbio, broadened its business and wholesale offering.

Its revenue is driven mainly by the number of connections and the average revenue earned from each. Because the company runs part of its own fibre and network infrastructure, growth in "on-net" connections can improve margins compared with simply reselling another carrier's service, although that also requires Capital spending.

Operating performance

At 30 June 2026 the company reported more than 1.11 million on-net broadband connections, up 41 per cent over the year. Reported NBN Market Share was 12.1 per cent, up 3.7 percentage points. Mobile connections reached 263,000, an increase of 48,000 or 22 per cent during FY26.

Much of the broadband growth came through Acquisition and migration rather than Organic Sales alone. The migration of customers from the More and Tangerine brands was completed in June 2026, and the migration of AGL Telco customers is expected to finish in the second quarter of FY27. The company also completed the Nexgen acquisition, which it says strengthens its small and medium business capability, and divested Buddy Telco and Digital Sense.

Capital management

The board declared a final Dividend of 3.6 cents per share, fully franked, taking the full-year dividend to 6.0 cents, an increase of 50 per cent. It also announced an on-market buyback of up to $115 million. Net Leverage was reported at 0.9 times, lower than at the start of the year.

Early FY27 trading

Management said more than 120,000 broadband connections had been added since the start of FY27, through organic growth and migrations. About 11,000 of those were net new connections excluding the More, Tangerine and AGL services. It also said wholesale volumes had eased slightly since June, and that More and Tangerine connections were expected to return to growth in the second quarter of FY27.

At its Annual General Meeting on 23 October 2026, the company published a trading update that repeated its FY27 guidance, including Capital Expenditure of $60 million to $65 million, and said it was well positioned to deliver its upgraded "Look-to-28" ambitions.

Sector conditions and competition

Australian broadband is a mature market in which the NBN wholesale cost base is largely shared by every retailer. Competition therefore centres on price, service quality, bundling and the ability to add mobile services. Telstra, Optus, TPG Telecom and several smaller brands all compete for the same households.

Aussie Broadband has built its reputation on Customer Service and on being a challenger to the larger carriers. The migrations add scale, but scale also puts the company in more direct competition with the incumbents it has traditionally positioned itself against. Fixed wireless and 5G home broadband are a further source of competition for traditional NBN connections, a point some commentators have raised.

Index status

The company said it joined the S&P/ASX 200 in December 2025, effective from 22 December. On that basis its membership appears to continue, though this has been derived rather than confirmed from a current constituent list.

Risks and uncertainties

The main risk is execution. The FY27 guidance assumes acquired customers stay after migration, and the company itself acknowledged that competition, price rises and the migration had hurt More and Tangerine connections in the short term. Churn after a migration can be difficult to predict.

Other risks include regulatory and NBN pricing changes, which can alter margins across the industry, and the capital intensity of operating network assets. Integration of several acquisitions at once also stretches management, and the gap between underlying and reported profit means investors should watch what is excluded.

What to watch

Key upcoming developments include completion of the AGL Telco migration by the second quarter of FY27, the return to growth of More and Tangerine connections, the pace of buyback activity, and the next quarterly or half-year disclosures, which will show whether the early FY27 trends continue.

The picture is of a business that has grown quickly and now has to prove that the larger base converts into the earnings management has guided to.