Flight Centre Travel Group Limited

Reported figures for the half-year were strong: TTV grew 7% to $12.5 billion, revenue increased 6% to $1.4 billion, underlying EBITDA rose 9% to $213 million, and underlying PBT increased 4% to $125 million. Underlying EPS was just over $0.28 per share, and the interim dividend was lifted to $0.12 per share. By division, corporate revenue grew 6% and profit grew 20%; leisure TTV rose 10% to just under $6 billion and leisure underlying PBT was $61 million versus $64 million a year ago. Management reaffirmed FY26 underlying PBT guidance of $315 million to $350 million, with a midpoint of about $332.5 million, and said this implies a 38%-62% first-half/second-half earnings skew. CapEx remains about $85 million for FY26, and the HQ segment was guided to a full-year loss of about $90 million to $95 million.

Skroo Turner said the company enters the second half with good momentum, strong brands, and resilient demand across both leisure and corporate. He emphasized the group’s broader transformation, saying Flight Centre is now a more productive, more digital, and more diversified business than it was several years ago. His tone was confident but measured, stressing that the company is not rushing into acquisitions and remains ‘modestly cautious’ given macro uncertainty.

Adam Campbell focused on the operational and capital-management backdrop behind the result. He highlighted the 7% TTV growth to $12.5 billion, 6% revenue growth to $1.4 billion, 9% EBITDA growth to $213 million, and 4% PBT growth to $125 million, noting that lower interest income and lower cash balances from the buyback weighed on PBT versus EBITDA. He also pointed to $450 million of new longer-dated convertible notes, $126 million of buybacks executed to date out of a $200 million program, and an increased $0.12 fully franked interim dividend; he said future capital-management strategy will be reviewed later in the year as the buyback and note profile evolve. For HQ, he estimated a full-year loss of about $90 million to $95 million, with interest costs the main drag.

Analysts pressed management on productivity gains, the corporate competitive landscape, leisure margin pressure, and the impact of weak comps in late FY25. Management said productivity benefits are already showing in both divisions but more is to come as automation, AI, and workflow changes roll through; in corporate, win rates are running ahead of last year, while in leisure the early gains are more about cost avoidance than immediate P&L uplift. On the competitive side, management said consolidation is still creating RFP opportunities and that some competitor issues are helping, especially in Australia, but not materially in North America or Europe. On leisure, they said the weak period was mostly driven by U.S. destination shifts and geopolitical disruption, not a major deterioration in supplier overrides, and they expect margin to improve in H2.