The Aurizon Holdings Ltd (ASX: AZJ) share price is in focus today after reporting a 9% rise in first-half FY2026 EBITDA to $891 million and lifting its interim dividend by 36% to 12.5 cents per share.
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What did Aurizon Holdings report?
- Revenue up 4% to $2.1 billion
- EBITDA increased 9% to $891 million
- NPAT rose 16% to $237 million
- Earnings per share up 20% to 13.6 cents
- Interim dividend of 12.5 cps, 90% franked (36% increase)
- Free cashflow up 41% to $335 million
What else do investors need to know?
Aurizon attributed the result to higher volumes, a regulatory revenue uplift, and continued discipline on costs. The half saw solid gains across the Bulk, Coal, and Network business units, supporting the group's improved earnings.
The interim dividend payout ratio was lifted to 90% of Underlying NPAT, and Aurizon extended its on-market buy-back by $100 million, now totalling up to $250 million. The company also completed a review of its Network business, deciding to keep its integrated rail model rather than pursue a demerger or monetisation.
What did Aurizon Holdings management say?
Managing Director & CEO Andrew Harding said:
Today's results underscore the strength of Aurizon's two largest business units, Network and Coal and the continued growth of Bulk and Containerised Freight… Revenue growth was driven by regulatory uplift and higher volumes, while disciplined cost control — including the successful execution of last year's $60 million cost‑out program — further strengthened our position… We determined that retaining 100% ownership of Network remained the option that best delivers long-term value for our shareholders.
What's next for Aurizon Holdings?
Aurizon expects full-year underlying EBITDA in the range of $1,680 million to $1,750 million and has upgraded expected full-year dividends to 22-23 cents per share. The group is maintaining its focus on disciplined growth, cost control, and investment in both transformation and growth capex.
Management says they are progressing with the draft 10-year undertaking for the Central Queensland Coal Network, which, if approved, is expected to provide an average annual revenue uplift and long-term certainty for customers and shareholders.
Aurizon Holdings share price snapshot
Over the past 12 months, Aurizon shares have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.
