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Highlights
- Transurban reaffirms FY25 distribution guidance at 65¢ per share.
- Daily traffic rose by 1.1% in the September quarter.
- Construction in Sydney and Melbourne is expected to improve future traffic flows.
Transurban Group (ASX:TCL), a key player in the toll road industry, has reaffirmed its FY25 distribution guidance of 65¢ per share, according to its latest quarterly update. The company continues to show steady performance, supported by an uptick in daily traffic despite ongoing construction in major cities like Sydney and Melbourne.
In the September quarter, Transurban reported that average daily traffic increased by 1.1%, with approximately 2.5 million trips being made each day across its network. The company observed growth in traffic across all regions, except for Melbourne, which has been impacted by construction activity. This ongoing development in Melbourne, as well as parts of Sydney, is seen as a temporary factor, with expectations of improved traffic flow and travel time savings once completed.
Transurban’s CEO, Michelle Jablko, commented on the construction’s impact, noting that while certain areas are experiencing short-term disruptions, the long-term benefits will be significant. She emphasized that the completion of these projects will bring enhancements in traffic flow, reducing congestion and improving travel times for road users across Transurban's network.
The company's reaffirmation of its FY25 distribution guidance indicates confidence in its future performance, despite challenges posed by construction-related traffic disruptions. As infrastructure improvements in major cities wrap up, Transurban is poised to benefit from increased efficiency and higher traffic volumes on its toll roads.
Transurban continues to manage a portfolio of toll road assets across multiple regions, and with the reaffirmed FY25 distribution guidance, the company aims to maintain steady returns to shareholders while progressing on key infrastructure projects.
