Aurizon rallies after topping analysts' estimates in HY earnings
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More news: Shares in Aurizon climbed in early trade after the company topped analysts' estimates in first-half earnings and for dividends.
Shares rose 6.27% to $3.81 at 12:19pm AEDT.
Jarden analysts Jakob Cakarnis and Darcy White said there were upside risks to the company including improved FY26 guidance, signs of improving bulk financial performance and the prospect of further capital returns to shareholders.
They set a 12-month target price to $3.59 per share and maintained a neutral rating.
Aurizon posts HY profit boost, hikes dividend
The news: Freight rail operator Aurizon reported a 1% increase in first-half statutory net profit to $235 million, driven by the network and coal units and the execution of last year's $60 million cost-out program.
The numbers: The profit topped average forecasts of $218 million, according to Visible Alpha.
EBITDA was up 9% to $891 million, above analysts' estimates of $864 million.
The company declared an interim dividend of 12.5 cents per share, exceeding consensus estimates of 9.8 cents.
The context: The company attributed the profit increase to regulatory uplift and disciplined cost control.
CEO Andrew Harding said the results was driven by the strength in Aurizon's network and coal businesses, as well as bulk and containerised freight.
He said the proposed acquisition of the Central Queensland Coal Network is expected to deliver an average annual revenue uplift of $45 million, subject to approval from the Queensland Competition Authority.
Separately, Aurizon has announced the appointment of Ian Wells as chief financial officer, effective 7 April.
