The Aurizon Holdings Ltd (ASX: AZJ) share price is in focus after the company reported a 14% fall in underlying net profit after tax (NPAT) to $348 million for FY25 and announced a new $150 million share buy-back.
What did Aurizon Holdings report?
- Revenue of $3,952 million, up 3% on the prior year
- Underlying EBITDA of $1,576 million, down 3%
- Underlying NPAT of $348 million, down 14%
- Final fully franked dividend of 6.5 cents per share; total FY2025 dividend 15.7 cps (down 8%)
- Statutory NPAT of $303 million, down 25%
- Completion of $300 million buy-back in FY2025; up to $150 million buy-back announced for FY2026
What else happened in FY2025?
Aurizon's Network division delivered a 3% higher EBITDA to $956 million, helped by increased regulatory revenue, although total coal volumes slipped by 1% to 208 million tonnes. The Coal segment's EBITDA was steady at $527 million as higher costs were offset by stronger revenue, with 2% more volume hauled. Bulk EBITDA declined 26% to $169 million due to lost contracts and lower grain volumes, with a 17% drop in tonnes moved.
Aurizon completed a $300 million share buy-back in the year and declared a final fully franked dividend, maintaining an 80% payout ratio on its 2HFY2025 underlying NPAT. The company's safety metrics, TRIFR and SIFAa+p, both showed slight deterioration year-on-year.
What did Aurizon Holdings management say?
Commenting on the result, Managing Director & CEO Andrew Harding said:
FY2025 was a year of strategic progress for Aurizon, despite challenging market conditions in parts of the business. We secured a landmark contract with BHP in South Australia, advanced regulatory certainty for the Network business, and accelerated our cost-out program, all while maintaining stable earnings in the Coal and Network businesses.
These achievements are underpinned by our confidence in the long-term growth and earnings potential for Aurizon in markets for coal and bulk commodities including agriculture and critical minerals.
What's next for Aurizon Holdings?
For FY2026, Aurizon expects underlying EBITDA to increase to between $1,680 million and $1,750 million, with dividends predicted at 19 to 20 cents per share. Management says Network and Coal businesses are expected to post higher EBITDA, while Bulk should recover after a tough FY2025.
Capital investment is planned between $710 million and $810 million for the next year, as Aurizon positions itself for continued growth, especially in bulk commodities and ongoing cost efficiencies.
Aurizon Holdings share price snapshot
Over the past 12 months, the Aurizon Holdings shares have declined 4%, trailing the S&P/ASX 200 Index (ASX: XJO) which has increased 12%.
