ASX-LISTED rail freight operator Aurizon has reported a group EBITDA of $891 million for the half-year ending 31 December 2025.
The overall result represented a 9% increase against the prior comparable period (pcp) (1HFY2025 of $814 million), with a strong performance in the bulk business (EBITDA up by $33 million to $117 million or a 4% increase by volume).
The group also recorded higher coal earnings (EBITDA increased $34 million to $298 million) or a 1% increase in volumes, revenue yield and favourable operating costs.
Aurizon managing director and chief executive Andrew Harding said the results underscored the strength of Aurizon's two largest business units: network and coal and the continued growth of bulk and containerised freight.
“Revenue growth was driven by regulatory uplift and higher volumes, while disciplined cost control — including the successful execution of last year's $60 million cost out program — further strengthened our position," he said.
“This strong performance has flowed through to increases in our NPAT, free cash flow and earnings per share.
“Late last year, and with customer support, we submitted a draft 10-year undertaking for the Central Queensland Coal Network.”
The new undertaking, known as UT5+ and subject to approval by the Queensland Competition Authority, is expected to deliver an average annual revenue uplift of $45 million to the Aurizon network.
Moody’s Ratings analyst Liam Li said figures were supported by the beginning of new contracts, including with BHP Copper.
“Aurizon’s results for the six months to 31 December 2025 were in line with expectations, with an uplift in earnings driven by higher allowable revenue for network and stronger bulk haulage volumes, supported by new contract starts,” Mr Li said.
“Coal haulage volumes increased slightly by 1%, however, coal earnings benefited from price indexations and reduced operating costs.”
Aurizon also completed the network ownership structure review and has made the decision to retain Aurizon’s existing above and below-rail integrated model.
The review, supported by external advisers, assessed a broad range of whole-of-business and minority structure options for Network including monetisation and demerger scenarios.
"We determined that retaining 100% ownership of Network remained the option that best delivers long-term value for our shareholders," Mr Harding said.
“Moving forward we remain focused on the continued disciplined execution of our growth strategy.
"This is underpinned by our confidence in the long-term growth and earnings potential for Aurizon in the coal and bulk commodities we transport, including agriculture and critical minerals.”