Aurizon (AZJ) H2 2025 earnings summary

Executive summary

• Underlying EBITDA for FY2025 fell 3% to $1,576 million, impacted by deferred network revenue and bulk provisions, while statutory NPAT declined 25% to $303 million due to significant items including a $57 million bulk impairment.

• Revenue increased 3% to $3,952 million, driven by coal, bulk, and containerized freight.

• A $150 million on-market buyback was announced for FY2026, following a $300 million buyback in FY2025.

• The payout ratio was maintained at 80% with a fully franked dividend of 15.7 cents per share, down 8% year-over-year.

• Cost-out program identified $60 million in annualized savings, with full benefit from July 2025.

Financial highlights

• Statutory EBITDA was $43 million lower than underlying due to significant items, including $37 million legal settlements, $23 million transformation costs, and a $57 million bulk impairment.

• Free cash flow declined 22% to $518 million, but was up 19% in the second half.

• EBIT fell 8% to $844 million; NPAT dropped 14% to $348 million year-over-year.

• EPS declined 12% to 19.5 cents; ROIC fell to 8.1% from 8.9%.

• Total CapEx for the year was $695 million, a 17% reduction from the prior period.

Outlook and guidance

• FY2026 underlying EBITDA expected between $1,680 million and $1,750 million; dividends forecast at 19–20 cents per share.

• Sustaining CapEx projected at $610–$660 million; growth CapEx at $100–$150 million.

• Network, Coal, Bulk, and Other segments all expected to deliver higher EBITDA in FY2026, barring major disruptions.