Key Highlights

  • Aurizon delivered its FY26 results in August 2026.
  • Revenue rose 6% to AUD 4,194mn and underlying EBITDA climbed 9% to AUD 1,724mn.
  • Underlying net profit after tax increased 24% to AUD 433mn, with statutory NPAT of AUD 362mn and Earnings Per Share of 25.2 cents, up 29%.
  • Free Cash Flow improved 11% to AUD 573mn, and Leverage eased to 3.0 times net Debt to EBITDA from 3.3 times.

Aurizon has spent several years being judged on coal volumes and a heavy debt load. FY26 offered a different picture: earnings higher across most segments, a completed buy-back, and a Dividend lifted sharply. Australia's largest rail-based transport Business moved more than 250mn tonnes of commodities during the year while pushing further into bulk minerals and containerised freight. With the income profile restored and guidance pointing to broadly stable earnings, September 2026 is a reasonable moment to examine what now drives the business.

Company Business

Aurizon operates in four parts. Network owns and manages the Central Queensland Coal Network and earns regulated access revenue. Coal hauls metallurgical and thermal coal for export customers. Bulk moves iron ore, bauxite, copper concentrate and other commodities, largely in Western Australia and South Australia. Containerised Freight runs east-west intermodal services.

Sector Context

Aurizon delivered its FY26 results in August 2026. Revenue rose 6% to AUD 4,194mn and underlying EBITDA climbed 9% to AUD 1,724mn. Underlying net profit after tax increased 24% to AUD 433mn, with statutory NPAT of AUD 362mn and earnings per share of 25.2 cents, up 29%. Free cash flow improved 11% to AUD 573mn, and leverage eased to 3.0 times net debt to EBITDA from 3.3 times. The board declared a final dividend of 10.5 cents per share franked at 90%, lifting the full-year payout 46% to 23.0 cents. Coal haulage totalled 192.0mn tonnes, flat year on year, though the company recontracted more than 60mn tonnes of capacity with customers including BMA and Whitehaven, extending expiries into the mid-to-late 2030s. Bulk volumes grew 6% to 58.6mn tonnes, helped by first haulage for Yilgarn Iron and the BHP Copper South Australia contract. Containerised Freight lifted TEUs 25% to 236,866 and signed vehicle logistics contracts with CEVA and NYK Line, with purpose-built auto wagons expected from mid-2028. Network total revenue rose 6% to AUD 1,514mn, with track access revenue of AUD 1,445mn reflecting a higher regulatory allowance. Capital management included a completed AUD 250mn on-market buy-back struck at an average price of AUD 3.72. Safety moved the wrong way, with the total recordable injury frequency rate rising to 9.75 per million hours worked from 8.29 in FY25.

Risks to Consider

Contracted coal volumes for FY2027 fall to 211mn tonnes following cessation of a Hunter Valley contract, and structural decline in thermal coal remains a long-term overhang. Network earnings depend on regulatory determinations outside company control. Gearing is still elevated relative to many industrials, weather disruption is a recurring feature of Queensland haulage, and Containerised Freight has yet to prove it can earn a return.

What to Watch Next

FY2027 guidance is for underlying EBITDA of AUD 1,725mn to AUD 1,775mn and dividends of 23.0 to 24.0 cents per share, with non-growth Capital Expenditure of AUD 590mn to AUD 660mn and growth capex of AUD 70mn to AUD 120mn. Coal EBITDA is expected lower, with Network and Bulk higher and Containerised Freight targeted to reach EBITDA breakeven. A three-year transformation programme is aiming for AUD 30mn of annualised savings. The Annual General Meeting is scheduled for 22 October 2026.