Group underlying EBITDA declined 3% to A$1.576 billion, in line with revised guidance issued in June

BRISBANE: Aurizon Holdings Ltd. on Monday reported a 14% drop in underlying net profit after tax to A$348 million for the fiscal year ended June 30, citing higher costs and impairments in its bulk division. Statutory profit fell 25% to A$303 million.

The rail freight operator announced a new on-market share buy-back of up to A$150 million for FY2026, following the completion of a A$300 million buy-back in FY2025. The move reflects board confidence in Aurizon’s balance sheet and long-term growth outlook.

Group underlying EBITDA declined 3% to A$1.576 billion, in line with revised guidance issued in June. Revenue rose 3% to A$3.95 billion.

Aurizon declared a fully franked final dividend of 6.5 cents per share, bringing the total FY2025 payout to 15.7 cents, down 8% from the prior year.

CEO Andrew Harding said the company made “strategic progress” despite market headwinds, citing a 15-year logistics contract with BHP in South Australia and regulatory advances for its Network business.

Aurizon’s Coal EBITDA remained flat at A$527 million, while Bulk EBITDA dropped 26% to A$169 million due to contract losses and lower grain volumes. Network EBITDA rose 3% to A$956 million.

The company expects FY2026 EBITDA to rise to between A$1.68 billion and A$1.75 billion, supported by cost reductions and improved freight volumes. Aurizon has identified A$60 million in annualized savings, including a reduction of 200 full-time-equivalent roles.

Safety metrics deteriorated slightly, with TRIFR rising to 8.29 and SIFAa+p to 1.64 incidents per million hours worked.

The final dividend will be paid on Sept. 24 to shareholders on record as of Sept. 2.