Highlights

  • Aurizon reported FY26 Revenue of AUD 4.19 billion and underlying EBITDA of AUD 1.72 billion, up 9%.
  • Underlying NPAT rose 24% to AUD 433 million, while statutory NPAT increased 19% to AUD 362 million.
  • A new BHP Mitsubishi Alliance haulage contract covers up to 37 million tonnes a year and can run from July 2028 to 2040.
  • FY26 free Cash Flow rose 11% to AUD 573 million, supporting a total Dividend of 23.0 cents per share.

Aurizon Holdings (ASX:AZJ) entered FY27 with stronger earnings, improved cash generation and one of its most important coal contracts secured for the long term. FY26 results showed higher profit across the group, while the new BHP Mitsubishi Alliance agreement reduces a major source of contract uncertainty. At the same time, growth in Bulk and Containerised Freight is gradually broadening the company beyond its traditional coal exposure.

FY26 Earnings Move Higher

Aurizon reported FY26 revenue of AUD 4.19 billion, up 6%, and underlying EBITDA of AUD 1.72 billion, up 9%. Underlying NPAT rose 24% to AUD 433 million, while statutory NPAT increased 19% to AUD 362 million.

Group EBIT rose 17% to AUD 985 million and return on invested Capital improved to 9.5% from 8.1%. Free cash flow increased 11% to AUD 573 million.

BMA Contract Extends Visibility Into the 2040s

Aurizon recontracted BHP Mitsubishi Alliance for up to 37 million tonnes of metallurgical coal haulage a year from five Bowen Basin mines. The agreement begins on 1 July 2028 and can run for up to 12 years, replacing the current contract that expires in 2028.

The BMA agreement is important because the customer represents a substantial portion of Aurizon’s Queensland coal volumes. Aurizon has now recontracted more than 60 million tonnes of annual coal haulage since July 2025.

Network and Bulk Support Diversification

The regulated Network Business remained the largest earnings contributor, with underlying EBITDA rising 8% to AUD 1.03 billion as volumes increased to 212.5 million tonnes. Coal EBITDA rose 2% to AUD 540 million on broadly flat volumes.

Bulk delivered the strongest growth, with EBITDA up 38% to AUD 233 million and tonnage rising 6%. Iron ore has become Bulk’s largest revenue line, while the BHP Copper South Australia contract has added further diversification.

Dividend and Balance Sheet Remain in Focus

Aurizon declared a final dividend of 10.5 cents per share, taking the FY26 total to 23.0 cents, up from 15.7 cents in FY25. The company also completed a AUD 250 million on-market buy-back during the year.

Gearing was 57.0%, while net Debt to EBITDA improved to 3.0 times from 3.3 times. The balance sheet therefore remains an important consideration alongside the higher payout.

What to Watch

FY27 delivery will depend on coal volumes, execution of the cost-savings programme, further progress in Containerised Freight and the final regulatory outcome for the Network access undertaking. Capital Expenditure and gearing will also remain key.

Risks

Aurizon remains exposed to structural changes in coal demand, contract resets, regulatory decisions and high gearing. Lower contracted tonnes or weaker customer production could also pressure haulage earnings.