Qube (QUB) H2 2025 earnings summary

Executive summary

• Achieved record full-year results with underlying revenue of $4.46 billion, up 27.3% year-over-year, and underlying EBITA of $377.2 million, up 18.5%, driven by organic growth, acquisitions, and strong performance in grain trading, energy, and agri activities.

• Underlying NPATA rose 6.2% to $288.0 million, and underlying EPSA increased 6.0% to 16.25 cents, despite headwinds from industrial action, weather events, and MITCO JV losses.

• Fully franked dividend increased 7.1% to 9.8 cents per share, reflecting strong earnings and positive outlook.

• Safety performance improved, with TRIFR down 14% and all internal safety KPIs exceeded.

• Group ROACE improved to 9.9%, reflecting productivity gains and asset utilization.

Financial highlights

• Underlying EBITDA increased by 18.5% year-over-year to $616.2 million, with margin (excluding grain trading) rising to 10.5%.

• Statutory NPAT was $51.0 million, impacted by discontinued operations and impairments.

• EPSA grew 6.0% to 16.25 cents.

• Net debt increased by $403.3 million to $1,618.4 million, mainly due to acquisitions and working capital for grain trading.

• Cash conversion (excluding grain trading) was approximately 87%.

Outlook and guidance

• Expects solid growth in underlying NPATA and EPSA in FY26, with strong earnings growth in logistics and infrastructure, modest growth in ports and bulk, and a return to growth from Patrick.

• Associates projected to deliver improved earnings of $5–10 million, with Patrick as the main driver.

• Net interest expense anticipated to rise by $15–20 million due to higher net debt and lower interest income.

• CapEx guidance is $600–650 million, partly offset by $120–140 million in asset sales.

• Market outlook is generally favorable, with positive trends in containers, agri, and energy, but mixed in automotive and resources.