Transurban Earnings: Full-Year Distribution Guidance Confirmed

We maintain our AUD 12.50 per share fair value estimate for wide-moat Transurban. First-half fiscal 2024 proportional EBITDA lifted 8% on the previous corresponding period to AUD 1.3 billion. With interest costs contained, free cash flow, excluding capital releases, grew 18% to AUD 32.5 cents per share, fully covering Transurban’s interim distribution of AUD 30 cents per share. We maintain our total fiscal 2024 distribution forecast of AUD 62 cents per share, in line with management’s reaffirmed guidance. Shares in Transurban look fairly valued at current prices, with an implied yield of 4.7%.