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Shares of Transurban Group (ASX:TCL) experienced a notable drop of up to 1.4% on Thursday, falling to AU$12.70. This decline follows the company’s announcement of its financial results for the fiscal year (FY) 2024, which revealed a mix of performance metrics that fell short of market expectations.
For FY 2024, Transurban reported a proportional EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of AU$2,631 million, representing a 7.5% increase compared to the previous year. While this figure indicates solid year-on-year growth, it was slightly below the estimate provided by Citi, which had projected an EBITDA of AU$2,697 million.
The company’s proportional revenue for the fiscal year totalled AU$3,535 million, up 6.7% from FY 2023. However, this also fell short of Citi’s forecast of AU$3,714 million by approximately 5%. This revenue miss has been a key factor in the negative market reaction to Transurban's earnings report.
Despite the shortfall in revenue and EBITDA compared to market estimates, Transurban’s FY 2025 distribution per security guidance was in line with expectations. The company has projected a distribution of 65 Australian cents per security for FY 2025, which matches Citi’s estimate.
Transurban’s stock has struggled in 2024, with shares falling by 6.1% as of the last close. The recent earnings report added to the downward pressure on the stock, as the results did not fully meet analyst expectations. The market's reaction reflects investor concerns about the company’s ability to deliver on revenue and profitability targets.
