Aurizon (AZJ) H1 2025 earnings summary

Executive summary

• Network and Coal segments performed in line with expectations, supported by strong demand and resilient infrastructure, while statutory results benefited from $37 million legal settlement proceeds.

• Group EBITDA for 1HFY2025 was $814 million, down 4% year-over-year; statutory EBITDA was flat due to settlement proceeds.

• Bulk earnings declined 25% to $84 million, impacted by lower grain volumes, contract cessation, derailment, and increased doubtful debt provisions.

• Interim dividend declared at 9.2 cents per share (60% franked), representing 80% payout of underlying NPAT; buy-back extended by $50 million to $300 million, with $229 million completed.

• Acquisition of Flinders Logistics for $26 million completed to expand bulk logistics capabilities.

Financial highlights

• Revenue increased 3% year-over-year to $2,023 million, mainly from higher Coal and Containerised Freight volumes.

• Underlying EBITDA decreased by 4% to $814 million; statutory EBITDA was $851 million including legal settlement proceeds.

• Underlying EBIT dropped 10% to $455 million; statutory EBIT down 3% to $492 million.

• NPAT fell 14% to $205 million; statutory NPAT was $233 million.

• Free cash flow was $237 million, down 7% year-over-year.

Outlook and guidance

• FY2025 underlying EBITDA guidance maintained at $1,660–$1,740 million, expected at the lower end due to Bulk headwinds and increased maintenance.

• Sustaining capex guided at $640–$720 million; growth capex at $125–$175 million, both expected at lower end.

• Network EBITDA expected to rise on regulated revenue; Coal EBITDA to remain stable as higher volumes offset lower yield and higher costs; Bulk EBITDA expected to be lower than FY2024.

• No further doubtful debt provisions assumed in second half; outlook assumes no major disruptions.