Aurizon’s adjusted EBITDA increased by 9 per cent to $891 million, aligning with both RBC Capital Markets and consensus forecasts, according to RBC analyst Owen Birrell. The interim dividend of 12.5 cents per share surpassed estimates due to a higher payout ratio of 90 per cent. Aurizon is Australia’s largest rail freight operator and a top-100 ASX company, connecting miners, primary producers, and industry with international and domestic markets. The company provides integrated freight and logistics solutions across an extensive national network.
According to the report, the coal and bulk/freight divisions demonstrated strong performance. Coal EBITDA rose by 13 per cent, while bulk/freight saw an increase of 39 per cent. These gains were attributed to price indexation, commodity mix, and the acquisition of new customers. Network EBITDA remained steady at $516 million, with volumes unchanged. However, Birrell noted that the draft UT5+ undertaking could potentially boost annual revenue by $45 million, contingent upon regulatory approval.
FY26 EBITDA guidance has been reaffirmed within the range of $1.68 to $1.75 billion, which is slightly below RBC’s midpoint projection. Capital management initiatives include higher full-year dividends and the commencement of an on-market share buyback program valued at $250 million.
Following the release of these results, shares in the rail freight group experienced a notable increase, climbing by 5.7 per cent.
