Superloop (ASX: SLC) scales fibre ambitions with $165M Lightning Broadband acquisition

Key Highlights

• Superloop to acquire Lightning Broadband for $165 million in cash
• Combined smart communities footprint expands to 170,000 contracted lots
• HY26 revenue rises 23% while company returns to profitability
• Shares jump nearly 16% as investors welcome growth strategy
  
   

Superloop accelerates fibre expansion as growth story strengthens

Superloop Ltd (ASX: SLC) delivered one of the standout technology sector moves on Wednesday, 18 February 2026, after unveiling a major acquisition designed to strengthen its position as a national fibre challenger. 

The company’s shares surged about 15.7% intraday to around $2.80, reflecting strong market confidence in both its operational momentum and expansion strategy.

The telecommunications infrastructure provider confirmed it will acquire Lightning Broadband, via Lynham Networks, for $165 million in cash. The deal significantly expands Superloop’s fibre-to-the-premises footprint and accelerates its push into high-density residential developments, often referred to as “smart communities.” 

While acquisitions often carry execution risk, this transaction appears carefully aligned with Superloop’s existing infrastructure, giving the company immediate scale and long-term revenue visibility.

Building a national fibre challenger

Lightning Broadband brings approximately 54,000 secured lots across multiple Australian states, including both built properties and contracted developments scheduled for future delivery. 

Following the acquisition, Superloop’s smart communities division will expand to a combined footprint of about 170,000 lots, creating one of the largest challenger fibre portfolios outside the incumbent networks. 

Importantly, Lightning operates as the default last-mile fibre provider in more than 400 residential developments through its Statutory Infrastructure Provider status. That regulatory positioning gives the combined entity a recurring revenue advantage because once fibre infrastructure is installed, switching costs for residents are typically high and competition is limited.

Chief executive Paul Tyler described the acquisition as a central part of the company’s infrastructure-led growth model, stating:

“This acquisition is a critical step in our plan to build our Smart Communities asset base with significant scale and value. With a combined built and contracted book of approximately 170,000 lots, we have clear visibility of long-term sustainable growth.” 

Tyler also highlighted that Superloop’s existing 2,500-kilometre metropolitan fibre network allows direct integration of Lightning’s buildings, enabling cost savings and network resilience improvements.

Source: Superloop Company Announcement 

Profit turnaround supports expansion strategy

The acquisition arrives alongside a broader operational turnaround that has transformed Superloop’s financial profile over the past year. For the half year to December 2025, revenue climbed to $317.6 million, up 23% year-on-year, while underlying EBITDA rose 46% to $55.8 million. 

The company also returned to profitability, posting net profit of $5.1 million compared with a loss in the previous corresponding period.

The results reflect what analysts often call operating leverage, where network infrastructure costs grow more slowly than revenue as customer numbers expand. 

Superloop now serves more than 805,000 customers and continues to capture a rising share of new broadband connections across Australia, particularly in the consumer and wholesale segments.

Management also upgraded full-year EBITDA guidance to a range of $112 million to $120 million, signalling continued earnings momentum as customer growth accelerates and integration benefits begin to flow.

Consolidation trend reshaping telecom challengers

The Lightning Broadband purchase highlights a broader consolidation trend among challenger telecommunications infrastructure providers.

Smaller fibre developers that previously operated regional or niche networks are increasingly being absorbed by larger platforms seeking scale to compete with national incumbents such as Telstra, Optus and the NBN wholesale network.

Owning physical fibre infrastructure rather than relying solely on wholesale access has become a defining strategic advantage. Infrastructure ownership allows operators to control pricing, reduce third-party costs and generate long-term recurring cash flows. 

Superloop’s ongoing acquisitions, including earlier deals such as Frontier Networks, suggest the company is building a vertically integrated fibre network capable of supporting sustained margin expansion.

Industry analysts note that high-density residential developments represent one of the fastest-growing broadband demand segments, driven by urban population growth and increasing data consumption. 

Establishing early infrastructure presence in new developments can secure long-term customer relationships for decades, reinforcing the strategic logic behind Superloop’s expansion push.

Financial discipline remains a key investor focus

Despite the scale of the acquisition, Superloop has emphasised that the transaction will be funded using existing cash and debt facilities, leaving leverage at a relatively conservative level of about 1.4 times EBITDA. 

The company expects the acquisition to become earnings-per-share accretive by FY27, supported by projected annual synergies of around $5 million within three years. For investors, maintaining balance sheet discipline while pursuing growth remains a critical factor influencing long-term valuation.

The broader telecommunications sector has historically seen aggressive expansion strategies strain finances, but Superloop’s improving cash flow generation and refinancing initiatives provide a more stable foundation for continued acquisitions.

Market reaction reflects confidence in long-term strategy

Wednesday’s strong share price reaction suggests the market views Superloop’s growth strategy as entering a more mature phase. Earlier years were defined by network construction and heavy capital expenditure, while the current phase appears increasingly focused on scaling existing infrastructure and extracting operating efficiencies.

SLC Stock Price Chart | Source: StocknessMonster

Entry into the S&P/ASX 200 index in late 2025 also boosted institutional investor visibility, further strengthening liquidity and market interest in the company’s shares. 

As reporting season continues, telecommunications infrastructure companies with recurring revenue visibility and improving profitability have attracted growing attention, particularly in a market environment where investors are seeking resilient earnings streams.

Outlook: growth driven by infrastructure ownership

Superloop’s strategy centers on expanding its infrastructure-on-demand platform while strengthening its position as a credible national fibre challenger. 

Continued integration of acquired networks, customer growth across consumer and wholesale segments, and margin expansion from infrastructure ownership are expected to remain key drivers.

If execution remains consistent, the company could continue benefiting from the structural shift toward high-capacity fibre connectivity across residential and enterprise markets. 

The Lightning Broadband acquisition marks another step in that transition, reinforcing Superloop’s ambition to compete at scale in Australia’s rapidly evolving broadband landscape.