Highlights

  • FY26 underlying EBITDA increased 9% to AUD 1.724 billion, while underlying NPAT rose 24% to AUD 433 million.
  • The FY26 total Dividend rose 46% to 23.0 Australian cents per share; the final 10.5-cent dividend was 90% franked.
  • A Queensland coal haulage contract commencing July 2028 allows annual Volume flexibility up to 37 million tonnes.
  • FY27 underlying EBITDA guidance is AUD 1.725–1.775 billion, with Coal Earnings expected to decline.

Aurizon Holdings (ASX:AZJ) operates rail freight and infrastructure businesses across Australia, including the Central Queensland Coal Network, coal haulage, bulk logistics and containerised freight. Its FY26 results, released on 17 August 2026, showed higher underlying earnings across its principal operating segments. On the same day, the group announced a long-term Queensland coal haulage agreement beginning in 2028.

FY26 Profit Growth and Cash Returns

For the year ended 30 June 2026, Aurizon Holdings (ASX:AZJ) recorded underlying Revenue and other income of AUD 4.194 billion, up 6% year on year. Underlying EBITDA increased 9% to AUD 1.724 billion and underlying EBIT rose 17% to AUD 985 million. Underlying net profit after tax advanced 24% to AUD 433 million; statutory net profit was AUD 362 million, compared with AUD 303 million in FY25.

Free cash flow, under the company’s stated definition excluding growth capital expenditure, reached AUD 573 million, up from AUD 518 million. The FY26 total dividend increased to 23.0 cents per share from 15.7 cents. Aurizon Holdings (ASX:AZJ) also completed an AUD 250 million on-market buyback, cancelling approximately 67.1 million shares.

Rail Segment Performance and the New Contract

Network generated underlying EBITDA of AUD 1.030 billion, an 8% increase, supported by higher regulatory revenue and partly offset by operating costs. Coal EBITDA rose 2% to AUD 540 million, while Bulk EBITDA increased 38% to AUD 233 million, reflecting customer growth and the absence of a prior-year doubtful Debt provision. Other activities reported an EBITDA loss of AUD 79 million, although containerised freight revenue increased.

Aurizon Holdings (ASX:AZJ) secured a replacement haulage contract for the Queensland metallurgical coal operations of BMA. Effective 1 July 2028, the agreement provides flexibility for up to 37 million tonnes annually and can run for up to 12 years, subject to performance and extension terms. The announcement did not quantify contract revenue or profit, so its future financial contribution cannot be calculated from the disclosed terms.

FY27 Guidance, Capital Needs and Risks

For FY27, Aurizon Holdings (ASX:AZJ) expects underlying EBITDA between AUD 1.725 billion and AUD 1.775 billion and total dividends of 23.0–24.0 cents per share. Management anticipates higher Network and Bulk earnings, but lower Coal EBITDA because of reduced contracted volumes and yield. Containerised Freight is expected to reach EBITDA break-even. Non-growth Capital Expenditure is forecast at AUD 590–660 million, with another AUD 70–120 million of growth expenditure.

Financial flexibility remains relevant. At 30 June 2026, available Liquidity was AUD 1.102 billion, down from AUD 1.679 billion, while net finance costs reached AUD 357 million. The group also recorded an AUD 54 million Impairment in its New South Wales coal business. Regulatory decisions affecting Network revenue, customer contract renewals, weather disruption, coal Demand and freight start-up costs may influence whether FY27 expectations are achieved.

Key Insights

Aurizon Holdings (ASX:AZJ) entered FY27 with improved FY26 profitability, higher Shareholder distributions and a renewed long-term coal customer agreement. Nevertheless, the company’s own guidance indicates uneven segment performance, and debt servicing and capital spending remain material considerations.