Virgin Australia Holdings (ASX:VGN) EBIT: A$633 Mil (TTM As of Dec. 2025)

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ASX:VGN Virgin Australia Holdings Ltd ASX:VGN
12 GF Score
Price A$2.88
! 5 Warning Signs
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What is Virgin Australia Holdings EBIT?

Virgin Australia Holdings ASX:VGN -0.35% 12 EBIT is A$633 Mil as of Dec. 2025. GuruFocus rates ASX:VGN with a GF Score™ of 12/100. The stock has 5 warning signs investors should review.

Virgin Australia Holdings's earnings before interest and taxes (EBIT) for the six months ended in Dec. 2025 was A$489 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2025 was A$633 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Virgin Australia Holdings's annualized ROC % for the quarter that ended in Dec. 2025 was 13.21%. Virgin Australia Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 34.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Virgin Australia Holdings's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 19.49%.

Virgin Australia Holdings  (ASX:VGN) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Virgin Australia Holdings's annualized ROC % for the quarter that ended in Dec. 2025 is calculated as:

ROC % (Q: Dec. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Dec. 2025 ))/ count )
=859.8 * ( 1 - 7.59% )/( (6174.4 + 5858.9)/ 2 )
=794.54118/6016.65
=13.21 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4872.1 - 581.9 - ( 1163.1 - max(0, 3455.5 - 1571.3+1163.1))
=6174.4

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=5191.1 - 610.1 - ( 1341.5 - max(0, 3033.8 - 1755.9+1341.5))
=5858.9

Note: The Operating Income data used here is two times the semi-annual (Dec. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Virgin Australia Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Dec. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=977.6/( ( (2712.6 + max(-2303.8, 0)) + (2887.9 + max(-2204.7, 0)) )/ 2 )
=977.6/( ( 2712.6 + 2887.9 )/ 2 )
=977.6/2800.25
=34.91 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(367.7 + 29 + 11.5) - (581.9 + 1766.2 + 363.9)
=-2303.8

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(306.7 + 33.1 + 74.6) - (610.1 + 2.5 + 2006.5)
=-2204.7

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Dec. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Virgin Australia Holdings's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Dec. 2025 )
=633.2/3249.380
=19.49 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Virgin Australia Holdings EBIT Related Terms

Virgin Australia Holdings EBIT Historical Data

* Premium members only.

The historical data trend for Virgin Australia Holdings's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Virgin Australia Holdings EBIT Chart

Virgin Australia Holdings Annual Data
Trend Jun23 Jun24 Jun25
EBIT
240.00 682.00 474.40

Virgin Australia Holdings Semi-Annual Data
Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EBIT Get a 7-Day Free Trial 572.00 110.00 330.00 144.40 488.80

ASX:VGN vs DAL, UAL, LUV: EBIT Comparison

For the Airlines subindustry, Virgin Australia Holdings's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Virgin Australia Holdings EV-to-EBIT vs Transportation Industry

For the Transportation industry and Industrials sector, Virgin Australia Holdings's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Virgin Australia Holdings's EV-to-EBIT falls into.


ASX:VGN
12GF Score
Virgin Australia Holdings Ltd ASX:VGN
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Virgin Australia Holdings EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2025 adds up the semi-annually data reported by the company within the most recent 12 months, which was A$633 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of A$633 Mil mean?
Virgin Australia Holdings (ASX:VGN) has a EBIT of A$633 Mil as of Dec. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Virgin Australia Holdings.
Is Virgin Australia Holdings' EBIT too high?
Virgin Australia Holdings' current EBIT is A$633 Mil. Overall, Virgin Australia Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Virgin Australia Holdings' EBIT compare to DAL and UAL?
Virgin Australia Holdings' EBIT of A$633 Mil can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Transportation company?
A good EBIT depends on the Transportation industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Virgin Australia Holdings. Virgin Australia Holdings's current EBIT is A$633 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Australia Holdings stock overvalued right now?
Virgin Australia Holdings (ASX:VGN) has a current EBIT of A$633 Mil. The current EBIT is A$633 Mil. Virgin Australia Holdings' overall GF Score™ is 12/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Virgin Australia Holdings (ASX:VGN), the current EBIT is A$633 Mil as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Virgin Australia Holdings Business Description

Address 275 Grey Street, Level 11, South Brisbane, Brisbane, QLD, AUS, 4101
Virgin Australia is Australia's second-largest airline, operating about a third of the domestic market in a two-player market with Qantas. Virgin is a value-focused carrier operating high-frequency, point-to-point domestic routes and select short-haul international flights. The airline targets leisure and small to medium enterprise travelers with mid-range pricing. The vast majority of revenue is generated by the core airlines segment.
12GF Score

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EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

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