TransJamaican Highway continues to reward investors with infrastructure-backed earnings growth and a dividend story that is hard to ignore

Prepared for Our Today | Capital Markets & Investments Desk May 8 2026

There is a certain irony in the fact that one of the best-performing stocks on the Jamaica Stock Exchange over the past year is a road. Not a fintech, not a retailer, not a promising Junior Market upstart — a toll road. But that is precisely the kind of boring-is-beautiful story that tends to hold up when markets get choppy, and TransJamaican Highway Limited (TJH) has been delivering exactly that.

The stock closed recently at J$6.66, leaving it up 45 per cent in 2026 alone, and over the trailing twelve months the run has been even more striking. TJH’s share price has risen roughly 62 per cent over the past 52 weeks, outpacing the broader JSE Main Market by a wide margin. For a concession-based infrastructure company with a beta close to zero, that is a remarkable return profile.

The fundamentals underpin it. Full-year 2025 revenue came in at US$96.42 million, an 11.3 per cent increase over the prior year, while earnings climbed 17.1 per cent to US$36.68 million — a combination of volume growth, periodic toll rate adjustments, and the operating leverage that comes with owning your own infrastructure operator. Return on equity stands at nearly 50 per cent, and the Debt Service Coverage Ratio improved to 3.11 times, signalling that the company’s cash flows are more than adequate to service its long-term debt obligations.

“Investors are essentially buying into a revenue unlock that has not yet been fully reflected in the numbers.”

What makes 2026 the more interesting year, though, is what is now sitting on the balance sheet and running through the P&L that was not there before. In late December 2025, TJH commenced operations on the Phase 1C corridor — a 29-kilometre extension from May Pen to Williamsfield — after acquiring the concession from NROCC for US$20.3 million. That expansion brings the total toll network to six plazas and pushes the T1 corridor deeper inland toward Manchester. The Phase 1C segment is expected to have a more meaningful earnings contribution in 2026 now that full operations have commenced. Importantly, toll collection on Phase 1C had been deferred since the segment opened, meaning investors are essentially buying into a revenue unlock that has not yet been fully reflected in the numbers.

The company absorbed some turbulence along the way. Hurricane Melissa in October 2025 triggered a 15-day government-ordered suspension of toll operations, costing TJH an estimated US$3.5 million in foregone revenue. Management has not taken that lightly. The company’s attorneys have advised that the suspension breached TJH’s property rights under its concession agreement, and discussions with the Toll Authority are ongoing as TJH seeks compensation. The outcome of those talks could provide a modest upside catalyst in the quarters ahead.

Shareholders were not left empty-handed either. Total dividends declared for 2025 amounted to US$20 million, with a mid-year payment in October and a second tranche in April 2026 — a 30 per cent increase relative to the prior-year April payout. The current dividend yield sits at approximately 3.95 per cent, comfortably covered by earnings with a payout ratio of around 53 per cent. That is a sustainable yield with room to grow, which is not something that can be said of every income-oriented name on the exchange.

Operationally, the push toward electronic tolling is worth watching. Management has set a target of increasing T-Tag usage from roughly 50 per cent to 80 per cent of transactions, with Bill Express recently added as a top-up partner and broader electronic lane access being rolled out progressively. Higher T-Tag penetration reduces transaction time, lowers operating costs at the plazas, and generates more predictable cash collection — all of which feed through to margins.

Earnings for the March 2026 quarter are scheduled to be reported on May 12, giving the market a fresh data point within days. Given the Phase 1C ramp and the absence of any major weather disruption in the first quarter, the print has a reasonable chance of surprising to the upside.

Risks to consider

The risks are not trivial. TJH’s concession runs to 2036, and while that horizon is comfortable for now, any prolonged economic slowdown that dampens traffic volumes would bite into revenue. The company carries meaningful debt — net debt stands at approximately J$30.4 billion against a market capitalisation of J$86.3 billion — and its US$225 million Senior Secured Notes structure means it is not immune to refinancing risk as capital markets conditions evolve. There is also the ever-present reality that the government, as both regulator and former owner, holds structural influence over toll rate decisions.

Still, for investors looking for predictable cash flows, a growing dividend, and exposure to the backbone of Jamaican economic activity — trade, commuting, logistics, tourism — TJH offers something genuinely difficult to replicate on a Caribbean exchange. Concession assets of this scale do not come to market often. The ones that do tend to deserve a premium.

The road is long. This one appears to be going somewhere.

Disclaimer: This commentary is provided for information purposes only and does not constitute investment advice. Readers should consult a licensed investment adviser before making investment decisions.