Aurizon Holdings has delivered a solid financial result for the year ended 30 June 2026, with net profit after tax climbing 24 percent to $433 million and earnings per share lifting 29 percent to 25.2 cents. The earnings per share growth outpaced profit growth due to the completion of a $250 million on-market buy-back that retired 67.1 million shares, or 3.8 percent of issued capital. Group EBITDA increased by $148 million, or 9 percent, to $1,724 million, demonstrating broad-based improvements across the freight operator’s network, coal and bulk divisions.
The dividend announcement reflects management’s confidence in the result and the sustainability of earnings. A final dividend of 10.5 cents per share at 90 percent franking was declared, bringing total dividends for FY2026 to 23.0 cents per share, up 46 percent from the prior year. This represents a 90 percent payout ratio of underlying net profit after tax. For yield-focused investors, the combination of franking credits and a higher total payout makes Aurizon an increasingly attractive holding, particularly given the stability of revenues from regulated network assets and long-term customer contracts in bulk freight.
Performance across the business shows mixed momentum heading into FY2027. The network division grew EBITDA by $74 million, driven by higher regulatory revenue, though this was partly offset by increased operating costs. The coal division added $13 million in EBITDA growth, supported by price indexation, though contracted volumes are expected to decline in the coming year. The standout performer was bulk freight, which lifted EBITDA by $64 million, or 38 percent, benefiting from new customer wins and the non-recurrence of prior-year provisions for doubtful debts. This growth, however, will be tempered by reduced iron ore volumes in South Australia during FY2027.
Management’s guidance for FY2027 signals cautious optimism. Group EBITDA is expected to range between $1,725 million and $1,775 million, broadly in line with FY2026, while dividends are guided at 23.0 to 24.0 cents per share. The outlook assumes higher network EBITDA from regulatory improvements, lower coal EBITDA from reduced contracted volumes, and higher bulk EBITDA from full-year contributions of new customers. Investors should monitor the trajectory of contracted coal volumes, the sustainability of new bulk customer wins, and management’s progress on transformation capital initiatives, which are budgeted at $25 million in FY2027. The announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Aurizon Holdings Limited (ASX: AZJ)
Aurizon Holdings Limited is an Australian rail freight operator that transports more than 250 million tonnes of commodities annually, connecting miners, primary producers and industry with domestic and international markets. The company operates and manages two major rail networks: the Central Queensland Coal Network (2,670 kilometers) and the South Australia and Northern Territory Network (2,100 kilometers). Its operations span coal, bulk commodities and other freight services.
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