TJH’s Q1 Profit Cruised Through the Tolls

• For the first quarter ending March 31, 2026 (Q1 2026), toll operator TransJamaican Highway Limited (TJH) delivered another stellar quarter of earnings growth (+46.0%), supported by higher toll collections, continued traffic growth and the contribution from the newly integrated May Pen to Williamsfield (1C) leg.
• Revenues increased 29.0% to US$29.03Mn, driven by the Phase 1C leg, which contributed US$3.5Mn, or roughly 12% of total revenue, alongside sustained growth in traffic volumes, increased electronic toll (T-tag) adoption and improved operational throughput. However, other gains and losses, which mainly comprise gains from financial market operations and investment instruments, declined to US$0.19Mn (-77.9%), on account of higher foreign exchange losses.
• Operating expenses rose 20.0% to US$6.55Mn, reflecting higher amortisation, maintenance, insurance and bank charges. Administrative expenses also increased (+11.9%) due to higher staff costs and ongoing investment in organisational development initiatives, which aligned with its long-term growth strategy.
• Despite higher indirect costs, revenue growth significantly outpaced cost increases, resulting in improved profitability during the quarter. Operating profits climbed 28.9% to US$19.88Mn, while operating margins remained steady at 68.5%.
• Lower finance costs (-7.4%), supported by scheduled debt repayments and the redemptions of its 8/0% preference shares, of which 20% has been redeemed as at January 2026, also aided performance. Ultimately, TJH reported net profit of US$13.23Mn, with margins of 45.6% from 40.3% in Q1 2025.
• Looking ahead, TJH is expected to continue benefiting from the integration of the 1C leg, with the two toll plazas projected to contribute approximately US$10Mn in additional annual revenue as traffic volumes continue to build out along the corridor. However, persistently higher fuel prices could temper commuter activity and traffic growth, particularly for discretionary travelling.
• TJH’s ordinary share price closed trading at J$6.90 on May 12, reflecting a 49.7% year-to-date increase. Despite the appreciation in TJH’s share price year to date, its P/E ratio is 14.40x, which is below the Main Market Energy, Industrials and Materials Sector average of 21.20x due to its strong earnings growth momentum.

(Sources: TJH Financials & NCBCM Research)