Highlights

  • Aurizon reported FY26 Revenue of A$4,194 million and underlying EBITDA of A$1,724 million.
  • The Network, Coal and Bulk businesses remained the main Earnings contributors during FY26.
  • FY27 guidance points to higher Network and Bulk earnings but lower Coal earnings.
  • Containerised Freight is expected to move toward EBITDA break-even during FY27.
  • Coal recontracting, regulatory settings and Capital Expenditure remain key factors for the next reporting period.

Aurizon Holdings Ltd (ASX:AZJ) is Australia’s largest rail freight operator, moving more than 250 million tonnes of Australian commodities each year and connecting industry with domestic and international markets. Its FY26 result and FY27 guidance highlight changing coal contract economics, network regulation and the continued development of containerised freight.

FY26 Earnings Across the Rail Portfolio

For the year ended 30 June 2026, Aurizon reported revenue of A$4,194 million, underlying EBITDA of A$1,724 million and underlying EBIT of A$985 million. Underlying net profit after tax was A$433 million, while statutory net profit after tax was A$362 million. Earnings Per Share were 25.2 cents, total dividends were 23.0 cents per share, free Cash Flow was A$573 million and net Debt to EBITDA was 3.0 times.

Aurizon’s main businesses have different earnings drivers. Network manages the Central Queensland Coal Network, Coal provides haulage under long-term contracts, Bulk transports commodities such as iron ore, grain and minerals, and Containerised Freight is being developed as a broader logistics platform.

Coal Contracts and FY27 Earnings Mix

Coal recontracting is a key FY27 issue. Aurizon disclosed contracted coal volumes of 211 million tonnes for 2027 after customers adjusted commitments to production plans. Management expects hauled volumes to remain broadly stable, but changes in fixed-revenue components are expected to reduce Coal earnings.

For FY27, Aurizon guided to EBITDA of A$1,725 million to A$1,775 million. It expects Network and Bulk earnings to increase while Coal earnings decline. Dividend guidance is 23.0 to 24.0 cents per share, with non-growth capital expenditure of A$590 million to A$660 million and growth capital expenditure of A$70 million to A$120 million.

Network, Bulk and Containerised Freight

Network remains a major source of regulated earnings. During 2026, the Queensland Competition Authority released a draft decision on Aurizon’s proposed long-term access undertaking for the Central Queensland Coal Network. The final outcome will influence future network economics.

Bulk is becoming more relevant to the earnings mix, supported by customer growth and new logistics activity. Aurizon highlighted its BHP Copper South Australia logistics contract as part of its Diversification beyond coal. Containerised Freight also expanded through 2026, with new agreements and terminal Investment supporting the network. The Business is expected to reach EBITDA break-even during FY27.

Key Risks and Operational Priorities

Aurizon remains exposed to coal-market conditions, customer production plans, regulatory decisions and the capital intensity of rail infrastructure. Contract renewal terms can affect earnings even when volumes remain steady, while debt, safety, operating reliability and containerised freight execution remain important considerations.

Key Insights

Aurizon’s FY26 result shows a rail group balancing regulated network income, contracted coal haulage and broader freight growth. FY27 guidance points to a shift in earnings mix, with lower Coal contributions expected alongside higher Network and Bulk earnings. Coal recontracting, regulation, capital spending and Containerised Freight progress will shape the next period.