Aurizon (AZJ) H1 2026 earnings summary

Executive summary

• Underlying EBITDA rose 9% year-over-year to $891 million, with all business units contributing and NPAT up 16% to $237 million, reflecting disciplined execution and capital efficiency.

• EPS increased 20% to 13.6c, aided by share buybacks, and interim dividend declared at 12.5c per share (90% franked), up 36% with a 90% payout ratio.

• Dividend payout ratio increased to 90%, with buyback extended by $100 million to $250 million, enhancing shareholder returns.

• Free cash flow rose 41% to $335 million, reflecting cost control and operational improvements.

• Appointed Ian Wells as incoming CFO, with Gareth Long transitioning to Group Executive Enterprise Services.

Financial highlights

• Revenue increased 4% year-over-year to $2,104 million, supported by regulatory revenue and higher volumes.

• Underlying EBITDA up 9% to $891 million; EBIT up 15% to $525 million.

• EPS up 20% to 13.6c; statutory EPS up 5% to 13.5c.

• ROIC improved to 8.8% (up 0.4ppt); EBITDA margin increased to 42.4%.

• Free cash flow of $335 million, up 41% from prior period.

Outlook and guidance

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

• Full-year dividend expected at 22–23cps, up from prior guidance.

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

• Segment EBITDA for Network, Coal, Bulk, and Other all expected to be higher than FY2025, barring major disruptions.

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