Key Highlights

• Aurizon hauls coal and other bulk commodities by rail, and owns the coal-rail network in Queensland, so its volumes track Australia's exports.

• FY2026 net profit rose 24% to A$433 million, and the full-year Dividend jumped 46% to 23.0 cents a share.

• Growth in its non-coal Bulk division is diversifying the Business beyond coal haulage.

• The FY2026 result, for the year ended 30 June 2026, showed profit and dividends rising strongly, helped by growth in bulk freight and network.

Aurizon Holdings (ASX:AZJ) is Australia's largest rail-freight company and a member of the S&P/ASX 200 industrials sector. It hauls coal and other bulk commodities by rail from mines to ports, and it owns and operates the regulated rail network that carries coal in Queensland. Because it moves the commodities that Australia sells to the world, its fortunes are tied to the nation's export economy. How rail freight volumes connect Aurizon to Australia's export economy is the essence of the company - the tonnes it hauls and the volumes crossing its network reflect the flow of Australian commodities to global markets.

The FY2026 result, for the year ended 30 June 2026, showed profit and dividends rising strongly, helped by growth in bulk freight and network Revenue despite headwinds in coal.

A strong result

Aurizon reported revenue and other income of A$4,194 million, up 6%, underlying EBITDA of A$1,724 million, up 9%, and underlying net profit after tax of A$433 million, up 24%. Earnings Per Share rose 29% to 25.2 cents, and the board lifted the full-year dividend 46% to 23.0 cents a share, at a payout of 90% of underlying profit. The company also completed a A$250 million share buy-back.

The result was driven by growth across its divisions, particularly its regulated network and its non-coal bulk business, which offset flat coal-haulage volumes. The strong profit growth and much higher dividend reflected the resilience and Diversification of the business.

The Network: the regulated backbone

Aurizon's Network division owns and operates the Central Queensland Coal Network, the regulated rail infrastructure that carries coal from Queensland's mines to its ports. This is a critical piece of national infrastructure, and it earns regulated revenue based on the tonnes of coal that cross it. In FY2026, network volumes rose 2% to 212.5 million tonnes, generating revenue of A$1,514 million and EBITDA of A$1,030 million - the largest single contributor to group earnings.

The Network is an attractive business because it is essential, regulated infrastructure with a near-monopoly position over the coal it carries. Its revenue is relatively stable and predictable, tied to the Volume of coal moving to export, with the regulatory framework providing a return on the assets. This regulated backbone gives Aurizon a base of dependable earnings, and its performance is closely linked to Queensland coal exports - a key part of Australia's export economy.

Coal haulage and the export link

Aurizon's Coal division hauls coal by rail for Mining companies, moving it from mines to ports for export or to domestic power stations. In FY2026, coal-haulage volumes were flat at 192.0 million tonnes, generating revenue of A$1,333 million, split evenly between metallurgical and thermal coal. This business is directly tied to Australia's coal exports, which are among the country's largest.

The volumes Aurizon hauls reflect the Demand for Australian coal from overseas buyers, particularly in Asia, for steelmaking and power generation. When coal exports are strong, Aurizon hauls more; when they soften, volumes ease. The business also faces the long-term question of coal's future as the world decarbonises, with contracted coal volumes for FY2027 guided lower. This is why Aurizon is diversifying beyond coal - but for now, coal haulage and the network that supports it remain central to its connection to the export economy.

Bulk: diversifying the business

Aurizon's growth engine is increasingly its Bulk division, which hauls commodities other than coal - such as iron ore, agricultural products and minerals - by rail and road. In FY2026, bulk volumes rose 6% to 58.6 million tonnes, revenue rose 10% to A$1,232 million, and EBITDA surged 38% to A$233 million, making it the fastest-growing part of the business.

The push into bulk is a deliberate strategy to diversify Aurizon beyond coal, reducing its long-term reliance on a Commodity facing structural decline. By hauling a wider range of commodities, Aurizon connects itself to more parts of Australia's export and resources economy, from minerals to agriculture.

Risks to Consider

Aurizon's coal-related businesses are exposed to the long-term decline of thermal coal and to the cyclicality.