Stock Drop: Webjet's (ASX: WJL) stock tumbled nearly 25% after ending acquisition talks with Helloworld and BGH Capital due to a lack of binding proposals.
Revised EBITDA Outlook: The company lowered its FY26 underlying EBITDA guidance to AU$28 million–AU$29 million, excluding Webjet Business Travel.
Share Buyback Resumes: Webjet restarted its AU$25 million on-market share buyback program, reaffirming confidence in its long-term strategy.
Stock Decline Following Failed Acquisition Talks
Webjet Group Limited (ASX: WJL) experienced a significant drop in its stock price, falling nearly 25% at the time of writing. This sharp decline occurred after the company ended takeover discussions with Helloworld Travel Limited (ASX: HLO) and BGH Capital. The talks, which had initially raised hopes for an acquisition, failed to yield any binding proposals. Despite extensive due diligence, neither of the parties involved came through with a definitive offer, leading Webjet’s board to refocus on its own strategy.
FY26 EBITDA Guidance Cut
In addition to the termination of the acquisition talks, Webjet also revised its earnings outlook. The company revised its FY26 underlying EBITDA forecast to between AU$28 million and AU$29 million, excluding the impact of Webjet Business Travel. This revision came amid a challenging trading environment, which continues to impact the company’s performance, particularly in the second half of FY26. Despite these difficulties, Webjet remains optimistic about its core business and the expected performance of Webjet Business Travel, which is on track with plans.
Share Buyback Program Resumes
On a more positive note, Webjet confirmed that it has restarted its share buyback program, which had been paused during the acquisition discussions. The program is set to purchase up to AU$25 million in shares, signaling the company's confidence in its long-term prospects and commitment to returning value to shareholders.
Webjet's focus will now shift entirely to executing its FY30 strategy, with an emphasis on driving growth, expanding market reach, and enhancing customer engagement through technology investments.
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Why Did Webjets Stock Tumble Nearly 25%?
Highlights:
Stock Decline Following Failed Acquisition Talks
Webjet Group Limited (ASX: WJL) experienced a significant drop in its stock price, falling nearly 25% at the time of writing. This sharp decline occurred after the company ended takeover discussions with Helloworld Travel Limited (ASX: HLO) and BGH Capital. The talks, which had initially raised hopes for an acquisition, failed to yield any binding proposals. Despite extensive due diligence, neither of the parties involved came through with a definitive offer, leading Webjet’s board to refocus on its own strategy.
FY26 EBITDA Guidance Cut
In addition to the termination of the acquisition talks, Webjet also revised its earnings outlook. The company revised its FY26 underlying EBITDA forecast to between AU$28 million and AU$29 million, excluding the impact of Webjet Business Travel. This revision came amid a challenging trading environment, which continues to impact the company’s performance, particularly in the second half of FY26. Despite these difficulties, Webjet remains optimistic about its core business and the expected performance of Webjet Business Travel, which is on track with plans.
Share Buyback Program Resumes
On a more positive note, Webjet confirmed that it has restarted its share buyback program, which had been paused during the acquisition discussions. The program is set to purchase up to AU$25 million in shares, signaling the company's confidence in its long-term prospects and commitment to returning value to shareholders.
Webjet's focus will now shift entirely to executing its FY30 strategy, with an emphasis on driving growth, expanding market reach, and enhancing customer engagement through technology investments.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au