Highlights

  • FY26 underlying EBITDA reached A$1,724 million, while underlying NPAT was A$433 million.
  • Free Cash Flow was A$573 million and the full-year Dividend totalled 23.0 cents per share.
  • Bulk delivered higher Earnings as customer growth supported activity across multiple Commodity markets.
  • Aurizon expects FY27 underlying EBITDA of A$1,725 million to A$1,775 million.
  • Coal earnings are expected to ease in FY27, while Network, Bulk and Containerised Freight are targeted to improve.

Aurizon Holdings (ASX:AZJ) is Australia’s largest rail freight operator, transporting commodities for miners, primary producers and industry through an extensive national rail and road network. Its FY26 result showed higher earnings, cash generation and Shareholder distributions, while the FY27 outlook points to differing trends across Network, Coal, Bulk and Containerised Freight.

FY26 Financial Performance

Aurizon reported FY26 underlying Revenue of A$4,194 million, underlying EBITDA of A$1,724 million and underlying EBIT of A$985 million. Underlying NPAT was A$433 million, while statutory NPAT was A$362 million. Free cash flow was A$573 million and return on invested Capital reached 9.5%. Net Debt to EBITDA was 3.0 times at 30 June 2026.

Dividends and Capital Returns

The company declared a 10.5 cents per share final dividend, 90% franked, taking the FY26 full-year dividend to 23.0 cents per share. Aurizon also completed a A$250 million on-market share buy-back during FY26. These capital returns were supported by the group’s cash generation and balance-sheet position reported for the year.

How the Operating Divisions Performed

Network EBITDA benefited from higher regulatory revenue, partly offset by increased operating costs. Coal EBITDA was supported by price indexation, while Bulk recorded higher earnings as customer growth and activity across several commodity sectors contributed to the result. Containerised Freight also advanced customer commitments as Aurizon continued developing this Business alongside its established rail operations.

FY27 Outlook and Business Priorities

Aurizon (ASX:AZJ) expects FY27 underlying EBITDA of A$1,725 million to A$1,775 million and full-year dividends of 23.0 to 24.0 cents per share. Non-growth Capital Expenditure is expected at A$590 million to A$660 million, with growth capital expenditure of A$70 million to A$120 million. Network EBITDA is expected to increase, while Coal EBITDA is expected to decline because of reduced contracted volumes and yield. Bulk EBITDA is expected to rise, and Containerised Freight is expected to reach break-even on an EBITDA basis.

Factors to Monitor

Execution across the FY27 operating plan remains important. Coal exposure leaves earnings sensitive to contracted volumes and customer activity, while the Network division remains influenced by regulated revenue settings. The group is also managing capital expenditure while expanding freight activities beyond coal. Progress toward Containerised Freight break-even and delivery of new customer volumes will provide further evidence on diversification.

Key Insights

Aurizon’s (ASX:AZJ) FY26 result combined higher earnings, cash flow and distributions with continued development of its broader freight portfolio. The FY27 guidance indicates a relatively stable group earnings range, supported by expected improvement in Network, Bulk and Containerised Freight while Coal faces lower contracted volumes and yield. The balance between these divisions will be central to the company’s operating performance through FY27.