Transurban FY26 Corporate Report Financial statements
Section B: Notes to the Group financial statements for the year ended 30 June 2026
B9
Dividends/distributions and Free Cash (continued)
Distributions and Free Cash calculation Free Cash is the primary measure used to assess the cash performance of the Group. Free Cash is a non-IFRS measure as it is not defined under Australian Accounting Standards and should be considered in conjunction with statutory disclosures. Free Cash is considered necessary to provide a true and fair view of the Group's cash generation capacity and the cash available for distribution, as it aligns to proportional EBITDA which reflects geographical contributions based on equity ownership (refer to Note B4) and adjusts for certain cash items (including net finance costs paid, debt fees paid, amortisation of debt and income taxes paid) and non- recurring items. The Group typically aligns distributions with Free Cash generated, with expected Free Cash cover of 95% – 105% for the financial year. The Group calculates Free Cash as follows: 2026 2025 Note $M $M Proportional EBITDA B4 3,110 2,676 Add: Non-recurring items 1 — 172 Proportional debt amortisation 2 12 2 M5 West maintenance cash expense 3 10 17 (Less): Non-recurring items 1 (47) — Proportional net finance costs paid (897) (784) Proportional debt fees paid (17) (19) Proportional income taxes paid (60) (56) Free Cash 2,111 2,008 Add: Movements in cash reserves — 93 Proportional capital releases 172 558 Free Cash (including cash reserves and capital releases) 2,283 2,659
Weighted average securities on issue (M) 4
3,117
3,106
Free Cash per stapled security (cents)—weighted average securities
67.7
64.7
Free Cash (including cash reserves and capital releases) per stapled security (cents)— weighted average securities 85.6 1. Relates to commercial receipts from third parties in connection with the Group's construction contracts recognised during the current reporting period, and ConnectEast litigation liability costs (for prior period roaming fees charged) and restructuring costs recognised in the comparative reporting period that have been excluded from Free Cash. 2. Debt amortisation on assets that are within the final 12 years of their concession life will be deducted. The M5 West's debt amortisation is not deducted due to the M5 West concession arrangement being transferred to WCX ownership at the end of the current M5 West concession arrangement in December 2026. Certain non-100% owned assets partially fund their maintenance cash expense via financing cash flows. These financing cash flows are added back. 3. M5 West maintenance cash expense has been added back due to it entering its final maintenance cycle prior to the transfer of ownership to WCX in 2026. 4. The weighting applied to securities is based on their eligibility for distributions during the reporting period and consequently can be different to weighted average number of securities calculated in Note B8 Earnings per stapled security. Franking credits 2026 2025 $M $M Franking credits available for subsequent periods based on a tax rate of 30% (2025: 30%) 215 184 73.2 Franking credits available for subsequent periods relate to Airport Motorway Holdings Pty Ltd $209 million (2025: $181 million) and Transurban Holdings Limited $6 million (2025: $3 million). Distribution provision accounting policy A provision for distribution is recognised for any distribution declared and authorised on or before the end of the reporting period, but not distributed by the end of the reporting period. These distributions are declared and authorised once they are approved by the Board, are announced to equity holders and are no longer at the discretion of the entity.
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