Aurizon (AZJ) H1 2025 earnings summary

Executive summary

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

• Underlying EBITDA declined 4% to $814m; statutory EBITDA was flat; statutory NPAT was $233m, down 2%, and underlying NPAT fell 14%.

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

• Containerised Freight showed volume growth but remains below break-even utilisation, with land-bridging initiatives ramping up.

• Interim dividend of 9.2cps (80% payout, 60% franked) declared; $229m buy-back completed and extended to $300m.

Financial highlights

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

• Underlying EBITDA decreased 4% to $814m; EBIT dropped 10% to $455m; NPAT down 14% to $205m.

• Free cash flow (excl. growth CapEx) was $237m; post-growth CapEx free cash flow up 23%.

• EPS was 11.3c, down 12%; statutory EPS 12.8c, down 1%.

• EBITDA margin decreased to 40.2% from 43.0% year-over-year.

Outlook and guidance

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

• Sustaining CapEx guided at $640m–$720m, growth CapEx at $125m–$175m, 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 full-year EBITDA expected to be lower than FY2024 despite 2H step-up.

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