TransJamaican Highway reports strong Q1 performance

The performance was driven by a 14% year-over-year increase in revenue, which rose to US$22.5 million from US$19.8 million. The company attributes this growth to sustained increases in traffic volumes and effective toll operations management across its East-West corridor.

In a statement accompanying the unaudited financials, TJH highlighted that earnings before interest, taxes, depreciation, and amortization (EBITDA) reached US$18.1 million for the quarter — up by 17% over Q1 2024. The EBITDA margin improved to 80%, reflecting efficient cost controls and improved asset utilization.

Cost Efficiency and Dividend Confidence

Operating expenses declined to US$5.5 million, compared to US$6 million in the same period last year, mainly due to lower amortization charges and reduced repair and maintenance activities. Administrative expenses rose slightly to US$2.5 million, reflecting salary adjustments and increased operational costs linked to travel and office supplies.

Finance costs also decreased to US$3.3 million, down from US$3.5 million a year earlier, supported by continued principal repayments on the company’s secured notes.

In a move demonstrating confidence in its financial position, the Board declared an interim dividend of US$10 million in March 2025, payable in April. This follows the company’s strong dividend record in 2024 and underscores management’s commitment to delivering value to shareholders.

Commenting on the results, Chief Executive Officer Ivan Anderson noted, “This performance reflects our strong fundamentals and strategic discipline. Even as we manage inflationary pressures and invest in expanding access to our services, we continue to deliver profitable growth and create tangible value for our investors and the Jamaican public. We remain focused on efficiency and future readiness.”

Asset Base Strengthens

As at March 31, 2025, total assets stood at US$301 million, up from US$294 million at the end of December 2024. This was primarily driven by increases in restricted cash reserves and trade receivables. The company’s equity base remained robust at US$64.3 million, while total liabilities increased to US$237 million, reflecting the declared dividend and higher trade-related payables.

The Group’s debt service coverage ratio (DSCR) also strengthened to 3.18x, up from 2.94x in Q1 2024, indicating strong ability to meet debt obligations.

Market Confidence and Strategic Outlook

The strong Q1 results follow the successful completion of the Government of Jamaica’s divestment of its remaining 20% stake in the company earlier this year, which was met with strong demand from investors. This has expanded TJH’s shareholder base and increased trading liquidity on the Jamaica Stock Exchange.

TJH remains the operator of TransJam Highways (formerly known as Highway 2000 East-West), the only high-speed toll corridor linking Kingston to key areas in Clarendon and St. Catherine. The company continues to explore opportunities for expansion, including the operation of the completed Phase 1C extension from May Pen to Williamsfield. Negotiations for this corridor are far advanced with the Government of Jamaica.

With a consistent track record of profitability, disciplined financial management, and rising traffic demand, TransJamaican Highway appears well positioned to maintain its growth trajectory in 2025 and beyond.