Revenue rose 3.9% but EBITDAF fell 7.9% as costs outpaced growth

PBT fell 6.1% to NZ$244.2m and NPAT fell 5.5% to NZ$177.0m, which means the growth headline masks a genuine earnings contraction rather than a comparable-period distortion.

Segment detail shows Aeronautical revenue up and its disclosed gross margin improving to 76.7% from 74.8%, so the EBITDAF decline is not a segment-mix story; it points to group-level cost growth outrunning revenue. Cash fell NZ$103.8m to NZ$360.6m, gross borrowings rose 7.7% to NZ$2.7b, and net debt/EBITDA rose to 6.2x from 5.0x.

The payout ratio versus NPAT rose to 62.6% from 51.9%, which sits at the upper edge of Annolyse's historical range (mean 34.0%). Paying out a larger share of a shrinking profit, while net debt/EBITDA climbs to 6.2x from 5.0x, means dividend growth is currently outpacing earnings and is being supported by balance-sheet capacity rather than profit growth alone.

Debtor days rose to 31.7 from 29.9, at the upper edge of the historical range (mean 26.5 days), with trade debtors up 10% to NZ$90.5m. This is not yet acute but is an early signal worth monitoring for collection or credit pressure.

Auckland Airport typically weights results toward the second half (HY25 was 49.8% of FY25 revenue), so a straight-line annualisation of this half would understate the likely full-year outcome, though the direction of that seasonal lift cannot be confirmed without forward guidance.

Management's own underlying profit measure, which excludes revaluations and one-off items, is reported separately from statutory NPAT; this briefing treats that non-GAAP figure as company commentary only and relies on the statutory PBT and NPAT growth of -6.1% and -5.5% as the cleaner comparable read.

Capex fell 14.3% to NZ$430.6m from NZ$502.3m, cutting capex intensity to 82.9% of revenue from 100.5%, which helped preserve operating cash generation despite lower earnings.

That said, the balance sheet is doing more of the work: cash fell NZ$103.8m, gross borrowings rose, and net debt/EBITDA rose to 6.2x from 5.0x while the dividend and payout ratio both increased. This combination — lower capex cushioning cash flow while leverage and payout both rise against falling profit — points to a result that is only partly durable and increasingly dependent on balance-sheet flexibility rather than underlying earnings momentum.

This briefing cannot assess full-year outcomes or dividend sustainability with confidence because no stated targets, forward guidance, or full-year dividend policy figures were disclosed in this release.