Transurban Group reported a 3.1% increase in average daily traffic (ADT) for the September quarter 2026 compared to the prior year period, marking solid underlying momentum across its urban transport portfolio. The result reflects growth across all major geographic regions, with contributions from both new assets and operational improvements on existing toll roads. Sydney led the gains with 3.0% ADT growth to 1.077 million daily trips, while North America posted 4.7% growth despite construction headwinds on one major corridor.
Sydney’s performance was driven by exceptional growth on the M7 following the M7-M12 Integration Project opening, with ADT on that asset jumping 10.7%. Westconnex contributed 2.2% growth, while truck traffic across the region accelerated 4.2%, underpinned by port container volumes rising 6.8% year-on-year. Brisbane delivered 1.1% ADT growth to 498,000 trips, supported by large vehicle traffic gains of 3.6% across the orbital assets including Gateway and Logan motorways. These results suggest the company’s core Australian markets remain resilient despite the broader macroeconomic headwinds flagged in the announcement.
Melbourne’s 4.2% traffic growth was significantly boosted by the West Gate Tunnel Project, which opened in December 2025 and contributed 37,000 daily transactions during the quarter. Excluding the new asset, the legacy CityLink operations were essentially flat at minus 0.2%, reflecting traffic redistribution effects and a 0.5% decline in Melbourne Airport passenger volumes. The company noted it corrected a historical vehicle classification issue on CityLink and West Gate Tunnel in June 2026, though management stated this is not expected to materially impact free cash flow or FY27 distributions.
North America’s 4.7% growth masks divergent performance across the express lanes portfolio. The 495 Express Lanes delivered exceptional 17.3% traffic growth as Project NEXT benefits continue to flow through. The 95 Express Lanes declined 3.1% due to adjacent road construction activity, though management expects these headwinds to ease in coming months. More notably, average dynamic toll prices increased substantially, rising 20.0% on the 95 Express Lanes to US$15.82 per trip and 47.4% on the 495 Express Lanes to US$12.36 per trip, demonstrating clear pricing power and customer willingness to pay for express services.
The announcement highlighted policy risk around Victorian toll pricing ahead of the state election. Both major parties have proposed toll caps, with Labor announcing a AU$30 weekly cap starting January 2027 and the Liberal Party proposing a AU$50 weekly cap from July 2027. Transurban stated it does not expect material impact from these policy settings, though investors will want to monitor implementation details. The company noted that over 90% of revenue is either CPI-linked or subject to fixed escalators, providing inflation protection over an 18-month lag period, a structural feature supporting earnings resilience through macroeconomic variations.
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Investors should closely watch the impact of Victorian election policy outcomes, the progression of the 95 Express Lanes construction period, and any updates on macroeconomic conditions given management’s flagged concerns around geopolitical developments. Monthly traffic data through the remainder of 2026 will be provided. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Transurban Group (ASX: TCL)
Transurban Group is one of the world’s largest toll road operators, managing and developing urban motorway networks in Australia and North America. It generates revenue through electronic tolling on its road assets.
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