Aussie Broadband Limited (ABB) – Signs an accretive network deal

Aussie Broadband telecommunications and technology services in Australia across residential, business, government, and wholesale customers. Aussie Broadband Limited was founded in 2003 and is based in Morwell in Victoria.

FY25 operating earnings from Aussie Broadband came in ahead of Ord Minnett’s expectations. Combined with a material new wholesale agreement with two challenger telcos, More Telecom and Tangerine, plus the sale of the loss-making Buddy Telco business, Ord Minnett has significantly upgraded its forecasts and valuation. Aussie Broadband’s FY26 guidance for $157–167 million in operating earnings represented a 5% upgrade at the mid-point versus our prior estimates.

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The benefit of the new wholesale agreement with NBN is scheduled to be fully captured in FY27. In our view, FY25 marks a turning point in the company’s return cycle. Given improving earnings quality and rising returns on equity (ROE), our discounted cash flow-based price target rises to $5.72 per share from $4.55, although recent share price strength means we trim our recommendation to Accumulate from Buy.