FY26 results improvement driven by strong revenue growth

Key points

• Group revenue increased by 14.6% to $209.8m
• Strong growth in New South Wales and Queensland
• Adjusted EBITDA of $13.1m
• Successful refinancing with CBA
• Business transformation initiatives underway

Full summary

Avada Group Limited (ASX: AVD) has reported an improving operating performance driven by strong revenue growth in its two largest markets, Queensland and New South Wales, and the initial benefits of its ongoing business transformation. Group revenue increased by 14.6% to $209.8 million for FY26 (FY25: $183.1 million). Queensland delivered a strong operational performance with a 6.4% revenue increase to $112.3 million (FY25: $105.5 million), benefiting from major infrastructure investments. New South Wales reported an 86.7% year-on-year growth in revenue to $65.1 million (FY25: $34.9 million), driven by contract wins with new customers. Despite operating costs ahead of expectations, the company is positioned for profitable growth. Adjusted EBITDA was $13.1 million (FY25: $12.8 million). The company successfully refinanced and expanded its banking facilities with CBA, enhancing financial flexibility. Transformation initiatives have improved operational disciplines and financial resilience.

Guidance

Revenue of $209.8m, Adjusted EBITDA of $13.1m, FY26

Outlook

The outlook for the traffic management industry remains positive, with ongoing infrastructure investments supporting demand. Avada Group is focused on improving operational and commercial disciplines to achieve profitable growth.