Aurizon flags $10m hit in FY26 earnings on volatile fuel prices

The news: Freight operator Aurizon expects current fuel pricing to have a temporary $10 million impact on its FY26 earnings before interest and tax (EBITDA) guidance, however the company said these costs will be recovered in future periods.

The numbers: For the ten months to 30 April, the company reported a 2.6% increase in network volumes and a 6.7% rise in total bulk volumes compared to the prior corresponding period, driven by higher grain volumes and the commencement of the BHP Copper South Australia contract.

Aurizon maintained its FY26 group underlying EBITDA guidance of between $1.6 billion and $1.7 billion, with full-year dividend target of 22-23 cents per security.

The context: Aurizon stated that its diesel consumption is tied exclusively to Bulk and Containerised Freight haulage, with expenses primarily linked to international benchmark pricing. This has then created a temporary fuel price exposure that is expected to have a negative timing impact on the EBITDA.