Aussie Broadband combines a trusted premium challenger brand with accelerating scale synergies, 13%+ margin potential and a probability-weighted five-year target of A$9.35 versus A$4.77.
Overview
Aussie Broadband is a national Australian telecommunications challenger built around premium network performance, domestic customer support and an increasingly vertically integrated on-net model. Revenue comes from Residential, Business, Enterprise & Government, and Wholesale, with the latter two now representing 18% and 23% of revenue respectively and helping diversify the business away from consumer pricing pressure. **FY26 demonstrated strong operating leverage:** revenue rose 9.2% to A$1,295.4 million, underlying EBITDA increased 19.6% to A$165.3 million, EBITDA margin expanded to 12.8%, and operating cash flow surged 42.5% to A$167.2 million with 101.2% conversion. Gross margin nonetheless fell to 35.9% due to promotions. At A$4.77, valuation is approximately 10.0x EV/EBITDA and 17.6x forward P/E, supported by a five-year revenue CAGR of 29.90% and margin expansion from 5.4% in FY21 to 12.8% in FY26. FY27 EBITDA guidance of A$205–215 million incorporates acquisitions and phased AGL migration. Near-term catalysts are completion of the AGL migration in H1 FY27, A$21 million of annualized EBITDA contribution and the A$115 million buyback, while integration and price-war risks explain the market’s 5.64% post-results decline.