Qube (QUB) H1 2025 earnings summary

Executive summary

• Underlying revenue for H1 FY25 rose 28.4% to $2.09 billion, with underlying EBITA up 14.0% to $178.8 million and NPATA up 1.3% to $143.0 million, driven by organic growth, acquisitions, and strong agri, forestry, and energy performance, despite weaker automotive and industrial action.

• Statutory NPAT declined 5.9% to $105.7 million, impacted by lease accounting changes and discontinued operations.

• Interim dividend increased 2.5% to 4.1 cents per share, fully franked, with a payout ratio of 51% of underlying EPSA.

• Investment grade credit ratings (BBB) achieved from Fitch and S&P; $600 million in senior unsecured notes issued.

• Diversification and organic growth offset operational disruptions, including industrial action and mine closures.

Financial highlights

• Underlying EBITA margin (excluding grain trading) improved to 10.0%–11.2%; group ROACE (excluding MLP rail terminals) steady at 10.5%.

• Bulk grain exports surged 85% to 1.2 million tonnes, representing 61% of NSW volumes in H1 FY25.

• Net finance costs rose by AUD 12.5 million (up 47.2%) due to higher debt and interest rates.

• Cash conversion (excluding grain trading working capital) was 79% for the half; maintenance capex at 94% of depreciation.

• Available liquidity rose to AUD 1.15 billion as of December 2024; gearing ratio at 32.5%.

Outlook and guidance

• FY25 underlying NPATA and EPSA expected to be at least 5% above FY24, with Logistics & Infrastructure driving strongest EBITA growth and solid support from Ports & Bulk.

• Associates forecast an overall NPATA decline of $6–8 million, mainly due to MITCO losses.

• Net interest expense for FY25 expected to be $20–$25 million above FY24, lower than previous guidance due to delayed MIRRAT acquisition.

• Gross capex for FY25 forecast at $800–$850 million, with maintenance capex at 85–90% of depreciation, partly offset by ~$297.1 million in asset sales.

• Outlook assumes no material adverse changes in market, economic, or industrial conditions.