Aurizon Holdings has announced it will cut 200 full-time positions and initiate a further $150 million share buyback program. This decision comes as the company reported a 25 per cent decrease in annual net profit, which fell to $303 million. Aurizon is an Australian rail freight transport company. It provides services for a range of industries, including coal, minerals, and agricultural products.
While revenue saw a slight increase, the company’s profits were significantly impacted by a $57 million write-down related to its bulk haulage business. Additionally, Aurizon incurred $60 million in legal and restructuring costs. The job cuts are part of Aurizon’s broader strategy to improve its share price, building upon the $300 million share buyback that has already been completed.
Underlying earnings before interest, taxation, depreciation, and amortisation (EBITDA) totalled $1.57 billion. This figure represents a 48 per cent decrease compared to the previous year and falls short of the $1.66 billion to $1.74 billion range that Aurizon had initially forecast in February. However, the result aligns with revised guidance issued in June. Aurizon will distribute a full-year dividend of 15.7¢, an 11 per cent decrease from the prior year.
Looking ahead, Aurizon has projected underlying earnings of $1.68 billion to $1.75 billion for the 2026 fiscal year. The company also anticipates dividends of 19¢ to 20¢ per share during that period.
