Coverage Update 17 September 2026 (TCL, KLS)
Ryan Lim
Two companies under our coverage made announcements today. Transurban released August traffic, with group average daily traffic up 3.4% on the prior year. Kelsian received FIRB approval for the sale of its Tourism Portfolio to Journey Beyond. The complimentary notes below cover what happened; members receive our full assessment of every announcement against our published ratings and fair values, which are unchanged.
Transurban Group (ASX: TCL)
Transurban operates 22 toll roads under long-dated government concessions in Sydney, Melbourne, Brisbane and greater Washington DC. August group average daily traffic rose 3.4% on the prior year, or 1.9% excluding the West Gate Tunnel. Sydney rose 3.3% with the M7 up 11.8% following the M7-M12 Integration Project. Melbourne rose 3.5% including the West Gate Tunnel but fell 0.8% without it. Brisbane rose 1.0% with large vehicle traffic up 3.7%. North America rose 12.3%, with the 495 Express Lanes up 26.1% on capacity from the 495 Northern Extension and average dynamic tolls there up 36.0%; the 95 Express Lanes grew 3.8% with tolls up 5.8%. Management flagged renewed conflict in energy-producing regions as a macroeconomic watchpoint and will continue monthly traffic disclosure for the rest of 2026, noting that more than 90% of revenue is CPI-linked or subject to fixed escalators. The shares eased 0.2% to A$13.40.
Kelsian Group (ASX: KLS)
Kelsian operates government-contracted bus networks in Australia, the UK and Singapore, industrial shuttles in the US, and SeaLink ferries. The Foreign Investment Review Board has advised it has no objection to the divestment of the Tourism Portfolio to Journey Beyond, following ACCC clearance on 8 September. Completion remains subject to change-of-control consents for key contracts and is expected in the first half of FY27. The shares rose 0.5% to A$4.05.
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Complete research notes and models for both companies are available to members.