Chorus (NZSE:CNU) Stock Can Fibre Profit Growth Ease Debt Fears

Chorus shares closed at NZ$8.92 on 25 August, after a weak three month stretch that left the stock down about 10%. That cool sentiment sits awkwardly against a fibre heavy earnings story that just flipped the business back into meaningful profit.

The real shock in this result is not revenue. It is the surge in earnings power and what that means for a highly geared, income heavy balance sheet. Chorus lifted net profit to NZ$37m and delivered NZ$726m of EBITDA, while still carrying NZ$3.2b of net debt and a rich dividend promise. The rest of the report turns on that trade off.

Love Chorus' fibre heavy earnings profile but concerned about that NZ$3.2b net debt and dividend load on the balance sheet? Check out the list of solid balance sheet and fundamentals stocks (428 results).

FY 2026 Earnings Summary

• Revenue (TTM FY 2026 vs TTM FY 2025): NZ$1,020m vs. NZ$1,014m (up about 1%)
• Net Income from Continuing Operations (TTM FY 2026 vs TTM FY 2025): NZ$24m vs. NZ$4m (very large increase, about 6x)
• Basic EPS (Earnings Per Share, TTM FY 2026 vs TTM FY 2025): NZ$0.042857 vs. NZ$0.009195 (very large increase, about 4.7x)
• EBITDA (FY 2026 vs FY 2025): NZ$726m vs. NZ$705m (up about 3%)

Tired of scrolling through dense tables and raw figures, trying to piece together Chorus' story from this result alone? Get a clear visual read on how its profit profile fits with the balance sheet, dividends and more in the full company report for Chorus.

Chorus bull case leans on fibre cash delivery

Bulls argue Chorus is a high quality fibre utility that can turn rising usage into reliable cash flow and dividends. The latest result gives some backing to that view. Fibre connections reached more than 1.1 million and uptake is 75.9%, with fibre broadband revenue up 6% helped by ARPU edging to $59.51 and usage rising to 731GB a month. EBITDA of $726m, up 3%, and operating cash flow of $740m, up 4%, show that higher fibre mix and lower copper faults are now flowing into earnings. Net profit improved to $37m from $4m, which supports the decision to lift the FY26 dividend to $0.60 per share and guide to at least $0.62 for FY27. Management is also starting to monetise new services such as TimeSync and copper recycling, although these are still small contributors.

Debt, copper drag keep the Chorus bear case alive

Bears worry that high leverage, copper drag and execution risk on new projects could strain Chorus despite fibre growth. The balance sheet remains heavy. Net debt is $3.2b and debt to EBITDA is about 4.75x, with S&P potentially viewing leverage closer to 5.5x once government held securities are treated differently. That sits against a rich dividend promise and capex of $375m in FY26 with similar spend guided for FY27. Copper broadband and voice revenue fell 45% as connections declined by 48,000, which confirms the structural run off that needs to be offset by fibre and new services. Management is also testing capital intensive adjacent projects such as an inter island subsea cable and battery energy storage systems, while shares have fallen about 10% over 90 days. The result shows progress but does not yet resolve leverage and capital allocation concerns.

Access the Chorus earnings timeline that analysts are quietly sketching out, where the surface looks calm but the models start to disagree on when leverage, fibre growth and dividends pull the stock in different directions. View the full analyst estimates for Chorus

Take Control Of Your Chorus Research

If Chorus' fibre earnings story, heavy net debt and dividend commitment have you watching for a better entry point, register for free with Simply Wall St and add it to a Watchlist to track the share price against fair value and keep an eye on key developments. Once you are invested, use the Portfolio Command Center to cut through market noise and focus on the updates that matter most for your holdings. For the longer term, lean on the Community to see how other investors are thinking about Chorus and where the debate is heading. By surfacing potential catalysts and risks early, Simply Wall St helps you stay ahead of the market and make more informed decisions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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