Transurban FY26 Corporate Report Introduction
Strategic context Macroeconomic trends and continuous innovation across the transport sector present both opportunities and emerging challenges for our business and stakeholders. We review our priorities against this backdrop to ensure we continue to deliver value for stakeholders and position Transurban for growth now and into the future.
Infrastructure pipeline and funding pressures Governments across Australia and North America are operating in an increasingly complex fiscal environment, shaped by competing demands and tightening economic conditions. Population growth is driving the need for more housing, essential services and transport infrastructure, while governments are simultaneously expected to accelerate the energy transition, respond to persistent cost - of - living pressures and manage geopolitical impacts on fuel supply and demand. These pressures are converging at a time when rising interest rates are making it more expensive for both governments and the private sector to finance major projects. This tightening fiscal landscape is in stark contrast to proposed infrastructure pipelines. In the US, the funding gap required to maintain and improve the nation’s roads is estimated at USD684 billion over the next decade, with 39% of major roads in the US assessed as being in poor or mediocre condition. 7 In Australia, transport infrastructure investment is projected at $129 billion to 2029, accounting for 53% of the Major Public Infrastructure Pipeline. 8 At the same time, skills shortages, stagnant productivity growth and rising material costs continue to place additional pressure on infrastructure delivery in Australia. Against this backdrop, private investment remains a critical mechanism for enabling long - term infrastructure development without adding to immediate government balance - sheet pressures. In FY26, we opened more than $12 billion of new projects across Australia and North America, collectively saving drivers an additional 40,000 hours of travel time each day, 9 and demonstrating the role private capital can play in supporting resilient, future - focused transport networks. Read more on page 8. Fuel-efficient vehicles and road user charging Global energy volatility accelerated the transition toward lower- emission vehicles this year. Australian EV sales hit an all-time record in June 2026, making up 35.8% of new passenger vehicles sold. 10 New EV sales moderated in the US as government incentives were wound back and US car makers halted production of some models. However sales in used EVs rose 12% year-on-year in Q3 FY26 as older EVs reached price parity with second-hand internal combustion engine vehicles. 11 This changing mix of vehicles on the road, resulting in declines in fuel excise, underscores the need to develop fair, sustainable and long- term funding models, such as road user charging (RUC) to ensure governments can continue delivering essential infrastructure.
Despite heightened global instability, the fundamental need for people and freight to move around cities - which continues to grow – remained strong in FY26. This ongoing demand demonstrates the sector’s resilience. However, persistent current macroeconomic headwinds, combined with broader cost-of-living pressures and ongoing fuel price volatility continue to impact household and business budgets. In response, customers are looking for more value from their everyday travel and purchases, particularly through tangible rewards and savings. Simultaneously, the pace of technological change is accelerating. Artificial intelligence (AI) is being actively integrated across the transport sector, and the adoption of connected and autonomous vehicles (CAVs) is gaining momentum in the US. Alongside this, the transition toward hybrids and electric vehicles (EVs) is impacting how governments may fund roads into the future. Population growth, urbanisation and congestion By 2046, an extra 4.4 million people in aggregate are expected to live in metropolitan Melbourne, Sydney and Brisbane, 1 while an extra 960,000 people are expected to call the Greater Washington Area home. 2 This will create both significant demand and challenges for transport infrastructure. Proactive and strategic investment in all transport modes – roads, public transport and active transport – is essential to manage this growth and keep our cities moving. Public concern regarding traffic is widespread. A 2026 Transport Australia survey found that 75% of Australians are concerned about current levels of traffic congestion. 3 In the US, Washington DC area drivers lost 72 hours a year to rush hour congestion in 2025, 4 representing lost productivity and reduced wellbeing for commuters. Building new roads is part of the solution, as is upgrading existing infrastructure to realise more capacity, as we did with the M7-M12 Integration Project in Sydney in FY26. With 33% of the NSW population now living in Greater Western Sydney, 5 we widened 26 kilometres of the M7 Motorway. This upgrade has already improved journeys, with drivers now saving up to 39 minutes per trip, compared to the alternative free route. 6 Along with smart traffic management, solutions like this could help our assets continue to deliver faster, safer, and more reliable journeys for decades to come.
1 Deloitte Access Economics. Land Use Forecasts 2025. Deloitte Access Economics, 2025. 2 Oxford Economics, Metro Outlook: Washington-Arlington-Alexandria, DC-VA-MD-WC metropolitan area, Oxford Economics, 2026, accessed 8 July 2026 3 Transport Australia, Road User Charging: National public poll, Transport Australia, 2026 4 TomTom, Washington, DC traffic report | TomTom Traffic Index, TomTom website, 2026, accessed May 2026 5 NSW Government, 2026-27 NSW Budget: Western Sydney - supporting families, securing our future, NSW Government, 2026, p 9 6 Travel time savings between Rooty Hill and Campbelltown via the M7 southbound during the afternoon peak. All times are averages and are estimates based on Transurban modelling data for an average weekday peak periods 7 American Society of Civil Engineers 2025, A comprehensive assessment of America's infrastructure: 2025 report card for America's infrastructure, American Society of Civil Engineers 8 Infrastructure Australia, 2025 Infrastructure Market Capacity Report, Infrastructure Australia, 2025 9 Additional average workday travel time savings for the West Gate Tunnel, M7 and 495 Express Lanes, following the opening of the West Gate Tunnel Project. M7-M12 Integration Project and 495 Express Lanes Northern Extension Project in FY26 10 Electric Vehicle Council, EVs hit 36% market share as Tesla Model Y becomes Australia’s best-selling car for second consecutive month. Electric Vehicle Council, July 2026 11 Cox Automotive 2026, Q1 2026 industry insights, Cox Automotive, viewed 9 July 2026
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