Full Year 2026 Vector Ltd Earnings Call Transcript
Key Points
- Vector Ltd (FRA:VQA) reported a strong financial performance in FY26, with revenue up 12% to over $1 billion and net profit after tax up 55% to $240 million.
- The company achieved a record year of capital investment in its electricity network, with gross capital expenditure up 16% to $544 million, supporting network reliability and growth.
- Adjusted EBITDA increased by 20% to $482 million, driven by the higher DPP4 revenue allowance for the electricity distribution business.
- Operating cash flow rose 23% to $633 million, providing a solid foundation for future investments and shareholder returns.
- The company maintains a strong balance sheet with a BBB+ credit rating and a positive outlook, and it continues to receive growing distributions from its Blue Current investment, which increased to $55 million in FY26.
- Vector Ltd (FRA:VQA) is well-positioned for future growth, with a strategic review focusing on core operations and opportunities in electrification, and it has decided to retain its fibre business, which has significant growth potential.
- Gas distribution volumes declined by 1.7% and connections fell by 0.5%, reflecting ongoing uncertainty and lower demand in the gas market.
- The company recognized a $9.3 million loss on the sale of HRV, which negatively impacted other adjusted EBITDA.
- Net debt increased by $120 million to $2.28 billion, with gearing at 39%, partly due to higher capital investment and lower capital contributions.
- Blue Current reported an accounting loss of $43 million due to depreciation, interest, and amortization costs, which reduced Vector's net profit after tax.
- The company's dividend is not fully imputed, and it will only start paying cash tax in FY28, with imputation credits expected to be partial, not full.
- Capital contributions are forecast to decline in FY27, which could impact cash flow and the funding of capital expenditure.
Good morning, everybody. Welcome to Vector Limited's conference call and webcast to discuss the company's financial and operational results for the full year ended 30 June, 2026. (Operator Instructions) I must advise you that this conference call is being recorded today.
I would now like to hand you over to Vector's Chair, Doug Mckay, who will take you through the call. Please go ahead, Doug.
(interpreted) Good morning, everyone. I'm Doug Mackay, Vector's Chair. Today we'll be going through Vector's financial and operational results for the full year ending 30 June 2026. Joining me on the call are Group Chief Executive. Chris Blenkiron: and Chief Financial Officer, Jason Hollingsworth. We'll begin with an overview of the year, then cover the detailed financial and reportable segment results, our investment in Blue Current, the outlook for fiscal 27, and then the final dividend.
After that, we'll open up the call for questions. But for now, I'll hand over to Chris to
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