Aurizon (AZJ) H2 2024 earnings summary

Executive summary

• FY2024 underlying EBITDA rose 14% to $1,624 million, within guidance, with growth across Network, Coal, and Bulk segments.

• Statutory NPAT increased 25% to $406 million; underlying NPAT and EPS up 11%.

• Strong free cash flow (up 123% to $661 million) and reduced gearing enabled an 80% dividend payout ratio and a $150 million buyback.

• Containerized freight volumes grew 65%, with land bridging trials for imported vehicles underway.

• Safety performance improved, with TRIFR down 15% and SIFR(a+p) down 29%, supported by new frameworks.

Financial highlights

• Revenue increased 9% to $3,844 million, driven by Network regulated revenue, higher coal volumes/yield, and Bulk minerals/iron ore.

• Underlying EBITDA rose 14% to $1,624 million; EBIT up 20% to $917 million.

• Free cash flow (excluding growth CapEx) was $661 million, materially higher due to increased earnings and a tax refund.

• Final dividend of 7.3 cents per share declared, with a payout ratio of 80% (60% franked).

• Net Debt/EBITDA improved from 3.5x to 3.0x; gearing reduced to 52.2%.

Outlook and guidance

• FY2025 underlying EBITDA expected in the range of $1,660–$1,740 million.

• Sustaining CapEx forecast at $640–$720 million; growth CapEx at $125–$175 million.

• Network earnings to benefit from higher regulated revenue; Coal earnings expected broadly flat; Bulk earnings to rise, led by Bulk Central.

• Containerized freight expected to be EBITDA neutral; no major supply chain disruptions assumed.