Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
We approached this process with a long-term view and recognition of how important Sydney is to our business. We have demonstrated that we can work constructively with the Government to deliver cost relief for customers, while protecting the $36 billion investment Transurban and its partners have made in the Sydney road network. Implementation of these reforms is subject to definitive agreements and a range of approvals, 1 but Sydney motorists are expected to benefit from a simpler toll system that delivers meaningful, everyday savings (see page 27). It has been a significant year for new roads, opening more than $12 billion of projects, delivering much-needed extra capacity across Australia and North America. In June 2026, the M7–M12 Integration Project opened on time and on budget, establishing critical connections for the growing communities in Western Sydney and those travelling to the new Western Sydney International Airport. Since opening safely in December 2025, the West Gate Tunnel is improving port access and taking heavy freight off local streets. We are already receiving great feedback from local communities and freight operators on the positive difference the tunnel is making. In the Greater Washington Area, our extension to the 495 Express Lanes opened in November 2025, giving customers faster, more predictable trips through one of the area’s busiest corridors. Together these three projects will save drivers an additional 40,000 hours of travel time each day. 2 We also grew our Linkt Rewards program in Australia, with our more than 2 million Linkt Rewards members accessing $6.25 million in savings and competition winnings in FY26. 3 We continued to support customers experiencing hardship, increasing our Linkt Assist team so the program could more quickly provide help to those who need it most. With cost-of-living front of mind this year, we worked hard to build even more value for our customers, offering targeted rewards and bonus fuel discounts. This included an extra 26 cents per litre discount for frequent drivers, with 370,000 eligible customers saving up to $31 on a single tank of fuel. 4 We increased our support for local communities and business partners. For example, we provided $225,000 in additional community grants to organisations delivering cost-of-living relief, while temporarily cutting our small business supplier payment terms to 14 days to help them navigate cash-flow pressures from global supply chain disruptions across Australia and the United States (US). Pursuing growth This year, we advanced our broader development pipeline in the US, entering into active discussions regarding a major expansion of the 95 Express Lanes Bi-Directional project, with a potential 140% increase in lane miles proposed. We also divested the A25 Motorway in Montreal to redeploy capital. Longer-term, our North American presence strategically positions us to address future population growth and evolving mobility demands in the region. In Australia, we progressed the Logan West Upgrade project in Queensland to procurement request for tender (RFT) in April and early works have commenced to assess geotechnical and environmental
conditions, which will be used to support the ongoing design of the motorway upgrade. With our partners, we have agreed in-principle to the proposed widening of 17 kilometres of the M2-M7 in Sydney, which will reduce congestion in Sydney’s north-west growth corridor (see page 8). 5 We also continued our long-term advocacy around road user charging (RUC) initiatives and technology solutions to support governments. Research we conducted this year found that Australians are increasingly open to a more modern and equitable funding model, provided it is designed transparently and communicated clearly. Operational efficiencies By maintaining focus on cost discipline throughout the year, we kept FY26 operating cost growth below inflation at 3.3%. When new assets are excluded, operating cost growth remains flat at 0.7%. 6 Our assets in the US continued to outperform, delivering a 26% increase in Free Cash compared to FY25 2 and reflecting a step-change in this market’s operational performance and valuation. To further strengthen our balance sheet, we proactively managed our capital throughout the period. This included issuing and refinancing $7.8 billion of debt, which increased our weighted average cost of debt (WACD) by 25 basis points. Our FY27 distribution is expected to be 72 cps. 7 This represents 4.3% growth on FY26, reflecting our commitment to long-term value creation for our security holders. See more on page 13. We thank our security holders and customers for their ongoing support of Transurban. Thank you to our Transurban employees for their dedication and hard work throughout the year. Their commitment has been central to achieving the many milestones detailed in this report.
Michelle Jablko Chief Executive Officer
Craig Drummond Chair and Independent Non-executive Director
1 Subject to the parties entering formal documentation, and the satisfaction of conditions precedent under those agreements, including financier consents and regulatory approvals. Final Government and concession holder approvals and execution of formal transaction documents are expected by the second half of 2026 2 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 3 Total value of partner discounts redeemed and competition winnings in FY26 4 To access this limited-time offer, Linkt customers need to complete 10 or more trips on any Australian toll road between 15 June and 15 July 2026 5 Proposed Widening of the M7 between Richmond Road and the M2, and of the M2 from the M7 to Windsor Road subject to the parties entering into agreements and the satisfaction of conditions precedent under those agreements, including planning approvals, financier consents and Government investment decision 6 Non-IFRS measure 7 Traffic in June and July showed a more positive trajectory than April and May. Distribution guidance is subject to traffic performance and macroeconomic factors. Any distribution will ultimately be determined by the Transurban Board
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