Aurizon (AZJ) H1 2026 earnings summary

Executive summary

• Underlying EBITDA rose 9% year-over-year to $891m, with all business units contributing to earnings uplift and disciplined cost control, including a $60m cost-out program.

• Net profit after tax increased 16% to $237m, and earnings per share rose 20% to 13.6c, aided by share buybacks.

• Dividend payout ratio increased to 90%, with interim dividend up 36% to 12.5c per share (90% franked) and a $100m buyback extension announced.

• Strategic focus on portfolio optimization, disciplined capital allocation, and long-term growth, with a new CFO appointment and retention of the integrated network model after review.

• Comprehensive review of Network ownership structure concluded integration synergies up to $75m per annum; monetisation or demerger not pursued.

Financial highlights

• Revenue increased 4% year-over-year to $2,104m, driven by regulatory revenue and higher volumes in coal and bulk.

• Underlying NPAT, free cash flow, and EPS all improved, with free cash flow up 41% to $335m and EPS up 20% due to the buyback program.

• Statutory EBITDA up 4% to $888m; statutory NPAT up 1%.

• EBITDA margin improved to 42.4% from 40.2%, and ROIC increased to 8.8%.

• Buyback program extended by $100m, with 126m shares cancelled, increasing EPS by 7.4%.

Outlook and guidance

• FY2026 underlying EBITDA guidance maintained at $1,680m–$1,750m.

• Full-year dividend expectations raised to 22–23c per share.

• Non-growth CapEx guidance reduced to $580m–$600m; growth CapEx maintained at $100m–$150m.

• Segment EBITDA for Network, Coal, Bulk, and Other all expected to be higher than FY2025, assuming no major supply chain disruptions.

• Ongoing focus on cost transformation and technology upgrades through FY2028.