Webjet (ASX:WJL) FY26 EBITDA lands at A$28.1m. FY27 already looks worse

OTA bookings down 12% and three fresh headwinds reset the FY27 earnings base before strategy can fire.

Webjet Group’s (ASX:WJL) FY26 result confirms what the failed November 2025 takeover process hinted at. Underlying EBITDA came in at A$28.1 million, down from a restated A$35.0 million in FY25.

The headline number lands at the top of the A$28 to A$29 million range Webjet trimmed to earlier this year. So this is not a fresh downgrade. It is confirmation that the lower base is now the reality, not a passing soft patch.

The more interesting story sits beneath the group number. Webjet OTA, the core profit engine, saw EBITDA margin compress from 40.9% to 33.6% as the company spent A$4.5 million on a one-off brand relaunch. Cars & Motorhomes, by contrast, delivered a genuine turnaround with EBITDA up 169% to A$4.3 million.

Then there is the FY27 trading update, which is where shareholders should focus. Webjet OTA bookings are already down 12% on the prior corresponding period, with TTV down 15%.

Why the FY27 trading update is the real news, not the FY26 print

The FY26 numbers are essentially backward-looking. Management has spent six months telling investors that FY26 EBITDA would land near A$28 million, and it did. The forward-looking commentary is what changes the investment case.

FY27 is now expected to be materially impacted by three separate headwinds. Lower airline commissions are flowing through, the RBA’s surcharging regulation changes will pressure margins, and the variable revenue items that flattered FY26 are not expected to repeat.

Combine that with current trading showing OTA bookings down 12% and TTV down 15%, and the FY27 EBITDA base is likely to step down again before any strategic initiatives have time to fire. Webjet has quietly put its TTV target timing under review.

Cars & Motorhomes finally proves the group has more than one engine

The standout operational story is Cars & Motorhomes. EBITDA jumped from A$1.6 million to A$4.3 million on flat revenue, with the margin expanding 1,330 basis points to 21.6%. Second-half EBITDA of A$3.3 million suggests genuine momentum into FY27.

Most of the gain came from cost discipline rather than booking growth, with expenses down 15% on headcount and technology efficiencies. That is the right kind of turnaround, the kind that does not need a market recovery to keep working.

We think this segment is being under-valued by the market. At a A$4.3 million EBITDA run-rate with global brands like Airport Rentals and Motorhome Republic, it is no longer a rounding error.

Capital returns are doing heavy lifting while operations recover

Webjet declared a final dividend of 2.0 cents per share, taking FY26 total dividends to 4.0 cps. That is more than 100% of underlying NPAT, funded by the A$93.9 million net cash position and a deliberate strategy to release franking credits while they are available.

The on-market buyback, paused during the Helloworld and BGH due diligence period, has now resumed. Our concern is that capital returns can mask a multi-year earnings reset rather than fix it. The dividend is supported by the balance sheet, not by current cash generation, and FY27 operating cash flow will be the test.

The Investors Takeaway for Webjet Group

Webjet enters FY27 with A$93.9 million in net cash, no debt, three structural earnings headwinds and a core OTA business already trading 12% below last year. The bull case rests on Cars & Motorhomes operating leverage, Business Travel scaling, and AI-driven cost-outs in the OTA. The bear case is simpler. The earnings base keeps stepping down faster than the strategic initiatives can backfill.

Readers can find our prior coverage of the failed takeover and the original guidance downgrade at stocksdownunder. The suitors who walked away in late 2025 saw books that produced this FY26 number. Whether the market now agrees with their assessment or with Webjet’s buyback signal is the question that determines where the stock trades through 2026.