Aurizon (AZJ) H1 2025 earnings summary

Executive summary

• Group EBITDA for 1HFY2025 was $814 million, down 4% year-over-year, with Network and Coal segments performing in line with expectations and statutory results benefiting from $37 million in legal settlement proceeds.

• Bulk segment EBITDA declined 25% to $84 million due to lower grain volumes, contract cessation, derailment, and higher doubtful debt provisions, partially offset by new contracts.

• Interim dividend declared at 9.2 cents per share (60% franked), representing 80% of underlying NPAT, down 5% year-over-year.

• On-market share buy-back of $229 million completed, with a $50 million extension bringing the total to $300 million.

• Acquisition of Flinders Logistics for $26 million expands Bulk's supply chain capabilities in South Australia.

Financial highlights

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

• Underlying EBITDA decreased 4% to $814 million; statutory EBITDA was flat year-over-year at $851 million, including legal settlement proceeds.

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

• Free cash flow was $237 million, down 7% year-over-year; post-growth capex free cash flow rose 23%.

• EPS was 11.3 cents, down 12% year-over-year; statutory EPS 12.8 cents, down 1%.

Outlook and guidance

• FY2025 group underlying EBITDA guidance maintained at $1,660–$1,740 million, expected at the lower end.

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

• Outlook assumes no major supply chain disruptions, extreme weather, or additional doubtful debt provisions.

• Underlying effective tax rate for FY2025 expected at 29–31%; underlying cash tax rate below 25% in the short to medium term.