Tourism Holdings' PBT collapses to a $4.9m loss on a North America slump

This matters because it points to genuine deterioration in the group's largest offshore rental and sales market rather than a one-off adjustment. EBITDA fell 20.7% to $154.2m and NPAT fell 165.5% to a $25.8m loss, even as group revenue rose 1.7% to $937.2m, showing the top line held up while segment economics did not. Second-half momentum worsened: HY25 NPAT was a $25.3m profit, implying an H2 NPAT of roughly -$51.0m.

This means the earnings base has narrowed to fewer profitable regions, weakening the group's diversification argument.

The tax line materially distorts the headline comparison: the effective tax rate swung from 32.6% to -420.8%, widening the PBT-to-NPAT gap by 57 percentage points. PBT, though itself down 108.5%, is the cleaner operating read here because the tax movement reflects deferred-tax and impairment mechanics rather than trading performance.

Leverage also moved against the company: net debt/EBITDA rose to 3.2x from 2.3x and ROE fell to -4.5% from 6.4%, which reduces balance-sheet flexibility just as segment earnings are under pressure.

That trajectory is unfavourable: profitability weakened through the year, with the implied second-half NPAT swinging to roughly -$51.0m from a $25.3m first-half profit, indicating the North America and Australia pressures intensified rather than stabilised into year-end. Without forward commentary on fleet deployment or segment recovery plans, it is not possible to say whether this represents a trough or an ongoing deterioration.

This reflects fleet-cycle liquidation and reduced investment rather than a durable improvement in underlying trading cash generation, and free cash flow before lease items remained negative at -$9.8m. The prior-year cash conversion ratio against EBITDA is not presented here because the comparison basis is distorted; readers should treat any cash-conversion comparison with that caveat rather than as a clean year-on-year signal. The final dividend fell to 4 cents per share from 5 cents, and the full-year dividend fell to 6.5 cents from 9.5 cents, consistent with a payout policy pegged at roughly 50% of underlying NPAT rather than a discretionary cut.

This briefing cannot assess whether the North America and Australia segment declines reflect market-wide cyclical conditions or company-specific execution issues, since no comparable industry benchmark was supplied.