Webjet Group Ltd Wings clipped – FY26 result first take

Research evidence excerpt

Webjet Group Ltd Wings clipped – FY26 result first take

J P M O R G A N Asia Pacific Equity Research

20 May 2026

Webjet Group Ltd Neutral

WJL.AX, WJL AU

Wings clipped – FY26 result first take Price (18 May 26):A$0.49

Price Target (Nov-26):A$0.90

Key takeaways: WJL’s FY26 result came in largely in-line with prior guidance

(EBITDA A$28.1m vs guidance range of A$28m-29m), however, operating

conditions remain very challenging. Through to May 17th, Webjet OTA bookings/

TTV are down -12%/-15% y/y respectively – and this is before the impact of lower

Virgin commissions. On the change to Virgin commissions, WJL have flagged a

~A$3m impact to revenue if implemented through FY26. This would have lowered

TTV margins by ~200bps to 9.2% (vs 9.4% actual), but critically the impact would Australia

have had a much larger impact on earnings, assuming no additional cost out taken

Emerging Companies

(A$3m is ~11% of FY26 EBITDA). Details remain limited (particularly on TTV

margins and any opex response to both the weaker conditions/change in Virgin Michael James AC

(61-2) 9003-8435

agreement), however, assuming: 1) TTV falls -10% (an improvement on the current michael.james@jpmorgan.com

run-rate of -15%); 2) TTV margins fall to 9.2% (the implied FY26 margin factoring

Don Carducci

in the Virgin change); and 3) opex falls in-line with revenue (-12%); FY27 EBITDA (61-2) 9003-8379

would be A$25m (-20% vs current consensus estimates). Clearly, TTV margins and donald.n.carducci@jpmorgan.com

opex remain the critical variables in this scenario, hence, further clarity on the George Stewart

response to and impact of the change in the Virgin agreement are key. (61-2) 9003-8199

george.stewart@jpmorgan.com

• Key positives: 1) Cars & Motorhomes EBITDA improved to $4.3m (FY25: Laura S Hill