The Aussie Broadband Ltd (ASX: ABB) share price is down 9% after the company announced its FY26 result.
Aussie Broadband is a rapidly growing telco that provides broadband services to households, businesses, governments and wholesale.
FY26 result
Here are the main highlights for the 12 months to 30 June 2026:
- Revenue grew by 9.2% to $1.3 billion
- Underlying EBITDA (EBITDA explained) rose 19.6% to $165.3 million
- Underlying net profit after tax (NPAT) grew 41.8% to $52.4 million
- Reported net profit increased 7.5% to $35.3 million
- Operating cashflow rose 42.5% to $167.2 million
- Final dividend of $0.036 per share
- Full year dividend of $0.06 per share, up 50%
- Share buyback of up to $115 million announced
What happened in the result?
The company noted that during the year, its on-net broadband connections grew to more than 1.11 million as at 30 June 2026, which represented 41% growth. Its market share of the NBN improved by 3.7 percentage points to 12.1%.
It noted that the migration of More and Tangerine connections was completed in June 2026, while the migration of AGL Energy Ltd (ASX: AGL) telco broadband and mobile services is on track to complete in the second quarter of 2027.
Aussie Broadband also noted that the acquisition of Nexgen has enhanced its small and medium business capability and strengthened its ability to serve customers across a broad range of telecommunication solutions.
In mobile it added 48,000 connections during FY26 to 263,000 (up 22% year on year).
Outlook for the Aussie Broadband share price
The company said it has had a strong start to FY27, adding more than 120,000 broadband connections onto its network through organic growth and customer migrations. It also said it has experienced further momentum in mobile services, supported by recent product enhancements.
The company said wholesale segment volumes have “eased slightly” since June. It noted that the base wholesale business has grown, but the combined effects of the migration, price increases and competitive pressures has caused a short-term impact for More and Tangerine. Connections are expected to return to growth in the second quarter of FY27.
Excluding the movements in More, Tangerine and AGL services, Aussie Broadband added approximately 11,000 net new broadband connections since 1 July 2026.
The company expects to achieve underlying EBITDA of between $205 million and $215 million in FY27, representing growth of between 24% to 30% year on year.
Aussie Broadband is doing well to continue grow its market share, but its outlook could depend on how competitive the competition makes things. I think it has a good future, but I’m not sure how large its market share can become and 5G-powered wireless could become increasingly disruptive to NBN connections.
For my own portfolio, there are other ASX growth shares I’d rather buy.
