ABB -6.53%: delivered a mildly softer than hoped FY26 result this morning, with underlying earnings (EBITDA) slightly ahead of expectations but revenue and profit softer, while a weaker start to FY27 in wholesale connections took some gloss off the update.
Key FY26 numbers:
- Revenue of A$1.30 billion, up 9.2% but slightly below the A$1.31 billion expected.
- Underlying EBITDA of A$165.3 million, up 20% and modestly ahead of consensus.
- Net profit of A$35.3 million, below the A$46.7 million expected.
- Final dividend of 6c per share, up from 2.4c.
- FY27 underlying EBITDA guidance of A$205–215 million, with the midpoint broadly in line with consensus.
- FY27 capex guidance of A$60–65 million.
The weaker part of the result was revenue momentum. FY26 revenue growth was around 1% below expectations, which flowed through to gross profit, while underlying NPATA also missed its forecast. Wholesale broadband connections have also fallen by around 4,900 in 1Q27 to date.
On the positive side, ABB says FY27 has started strongly overall, with more than 120,000 broadband connections added through organic growth and customer migrations, and total broadband connections expected to exceed 1.3 million in 2Q27.
The company also announced a share buyback of up to A$115 million, which should provide some support after the recent share-price weakness.
MM’s view: The EBITDA result and FY27 guidance were fine, but the softer revenue trends and weak wholesale connection explain the negative reaction. We would view this as more of an execution and mix issue than a deterioration in the broader growth story.
MM remains long & bullish ABB
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