AURIZON has reported an increase in revenue for the first half of the 2025 financial year, though its EBITDA and NPAT have both dropped.
The rail freight operator released its H1 results today (17 February), coinciding with its announcement of a land-bridge partnership with ANL – an initiative expected to grow containerised freight volumes.
But on the results front, Aurizon’s revenue (and other income) climbed to $2.02 billion in H1, up 3% compared with the same reporting period in FY24.
Group EBITDA decreased 4% to $814 million, while NPAT plunged 14% to $205 million.
Aurizon attributed the softer EBITDA figure to performance in the company’s network, coal and bulk divisions.
Bulk EBITDA decreased $28 million to $84 million in the first half of FY25. New contract growth was more than offset by lower grain railings, the cessation of a rail maintenance contract and a derailment in WA, in addition to an increase in doubtful debt provisions, the company said.
Bulk volumes in the first half of FY25 amounted to 27 million tonnes – a 19% decrease compared with the same period last financial year.
EBITDA for Aurizon’s coal division decreased $19 million to $264 million, with coal volumes up 6% to 99 million tonnes, and contract rate indexation more than offset by the impact of lower yield and higher operating costs.
And while network EBITDA increased $9 million to $495 million, an uplift in the maximum allowable revenue was partly offset by a reduction in external construction works and higher maintenance costs.
Total network volumes increased to 110 million tonnes in the first half of FY25, a 3% increase compared with the same period in FY24.
Aurizon managing director and CEO Andrew Harding said overall H1 results underline “the continuing strength” of Aurizon’s two largest business units: network and coal.
“Both [businesses] are performing solidly and broadly in-line with expectations in the first half,” Mr Harding said.
“These businesses are leveraged to the ongoing demand for high-quality Australian coal on global markets. India remains Australia’s largest trading partner for steel-making coal and is expected to be the largest driver of demand over the coming decades.
“The strong cash flow generated by network and coal has supported investment in recent years in our two growth focussed businesses, bulk and containerised freight and in the building of capacity to capture emerging opportunities in these markets.”
Mr Harding said Aurizon’s bulk business is leveraged to global demand for Australian commodities such as base metals, grain and magnetite.
“In particular, we see significant opportunities in resources and agriculture in South Australia and the Northern Territory which is serviced by the Tarcoola-to-Darwin rail line we acquired in 2022.”
Aurizon does not consider containerised freight (related to national interstate services) a separate reportable business segment, but the company did highlight the new land-bridging alongside containerised freight as part of its H1 investor presentation.
“For containerised freight, we are leveraged to Australian GDP growth and seeing container traffic volumes increase on our national interstate services,” Mr Harding said.
“In addition, since mid-November regular vessels with land-bridging freight from Asia are arriving in Darwin for transhipping to Aurizon rail services.
“This is a significant milestone in our land-bridging initiative, first outlined to the market in mid-2023.”
Aurizon is working with ANL on the supply-chain initiative, announcing the partnership this morning. Freight shipped from Asia-Pacific ports to Darwin is unloaded and transported from the NT port to Adelaide via a direct rail connection.
Mr Harding said Aurizon is now seeing vessels arrive on a more frequent basis.
“The focus remains on building volume, with an efficient, alternate supply chain that has the potential to deliver material time savings for customers,” he said.
Aurizon also noted it is working with NYK on “the feasibility of several landside logistics business opportunities” to support the import and distribution of motor vehicles into Australia.
