Chorus swings to $15m NPAT as capex drops 21% into copper exit

What changed

Operating revenue rose 1.2% to $506.0m (HY25: $500.0m) and EBITDA rose roughly 3% to $357.0m (HY25: $346.0m). Below the line, the result swung from a $5.0m net loss to a $15.0m net profit, a $20.0m absolute improvement on broadly flat top-line and EBITDA performance. Gross capital expenditure fell to $158.0m from $199.0m, a $41.0m (-20.6%) reduction, taking capex intensity from 39.8% to 31.2% of revenue. The interim dividend was lifted to 24.0 cps from 23.0 cps (+4.3%). Total assets edged up to $6.1b from $6.1b at the prior reference date; current-period cash, gross borrowings, equity and operating cash flow were not disclosed in the normalised extraction.

What matters

• The earnings swing is driven below EBITDA. EBITDA moved only ~$11.0m, but NPAT moved ~$20.0m. With PBT and tax expense not disclosed in the extraction, the $15.0m NPAT cannot be cleanly decomposed, but the magnitude of the swing relative to the EBITDA change points to lower depreciation, interest or tax rather than operating leverage.
• Capex is stepping down materially. The $41.0m drop in gross capex, alongside the stated full copper withdrawal by mid-2026, is the most important structural development: it is the pivot from build to harvest that underpins the fibre-led strategy and any future free cash flow.
• Dividend raised against a thin NPAT base. A 24.0 cps interim is being funded against $15.0m half-year NPAT; sustainability therefore rests on operating cash flow and the capex decline, neither of which is quantified in this extraction for HY26.

Expectations

No formal earnings guidance or forward-work target is disclosed. The only shape context available is HY25/FY25: HY25 represented 49.3% of FY25 revenue and 49.1% of FY25 EBITDA, so the business is modestly second-half weighted on both lines. Annualising HY26 revenue gives $1b, essentially flat against FY25's $1b. If the second-half weighting repeats, a full-year revenue print modestly ahead of FY25 is plausible, but the release text supplied does not support a more precise read. The NPAT shape is noisier: HY25 delivered $5.0m against an FY25 total of just $4.0m, implying a near-break-even H2; on that base, the HY26 $15.0m already exceeds the entire FY25 NPAT.

Quality of result

Top-line and EBITDA movements are small enough that the result is better characterised as stable than as growth. The durable element is the capex step-down, which is consistent with the disclosed mid-2026 copper withdrawal and is structural rather than timing-driven. The NPAT swing, by contrast, is harder to underwrite: with no PBT, tax, depreciation or interest disclosure in the extraction, it is not possible to say how much of the $20.0m improvement reflects recurring operating gains versus lower D&A, lower financing cost, or tax effects. Operating cash flow, working capital and net debt are also not disclosed for HY26, so cash conversion cannot be verified against the EBITDA uplift.

Unresolved

• What drove the NPAT swing below EBITDA — lower depreciation, lower net interest, or a tax effect — and how much of it is recurring?
• Operating cash flow, net debt and gross borrowings for HY26 are not in the extraction; how has leverage moved as capex falls?
• Is the lower capex a sustained run-rate into FY27 post-copper-withdrawal, or a timing dip within the HY26 period?
• What is the fibre connection and ARPU trajectory underneath the 1.2% revenue growth, and how exposed is it to the "constrained consumer spending" the release acknowledges?
• How is the 24.0 cps interim covered by free cash flow, and what is the implied full-year dividend shape versus FY25's 57.5 cps total?

This briefing cannot assess leverage direction, cash conversion or the composition of the NPAT swing because the relevant HY26 cash flow, debt and tax lines are not present in the supplied extraction.

Key metrics

Analytical metrics

This analysis was generated using Annolyse, an AI-powered tool that analyses NZX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.