QAN +9.09%: Delivered strong FY25 earnings growth, with most divisions ahead of expectations, though rising costs and higher debt will be a focus moving forward.
- Underlying profit $2.39bn, +15% y/y vs consensus $2.35bn
- Jetstar was the standout, underlying EBIT of $769m, +55% y/y vs estimate $683m
- Net debt increased to $5.03bn +22% y/y
- Final dividend of 16.5cps and special dividend of 9.9cps declared
Qantas is guiding to capacity growth of 5% in FY26 and expects domestic and international unit revenues to rise 3–5% and 2–3% y/y respectively. While demand remains strong and fuel cheap, their fleet is being renewed with new A321XLR and Project Sunrise A350s – a big spend for the airliner over the next decade.
Other rising costs (including Same Job Same Pay, SAF investment, and higher opex) will likely temper the bottom line, though for now capital returns i.e dividends are keeping investors happy.
MM is neutral toward QAN
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