Aurizon reports 25% drop in full-year profit, unveils $150m buyback
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The news: Rail freight operator Aurizon recorded a 25% drop in full-year statutory profit to $303 million, down from $406 million last year, as the company recognised a $57 million impairment on its bulk business.
The numbers: Analysts had expected net profit of $361.97 million, according to consensus data compiled by Visible Alpha.
Revenue climbed 3% year on year to $3.95 billion. Underlying earnings came in at $1.58 billion, as flagged in June, missing guidance of $1.66 billion to $1.74 billion.
The company will pay a total dividend of 15.7 cents per share, down 8% from 17 cents a year ago, and shy of consensus forecasts of 16 cents.
Aurizon also announced an on-market share buyback of up to $150 million, following the completion of its $300 million buyback in FY25.
The context: Aurizon managing director and CEO Andrew Harding said it was a year of "strategic progress" for the company, amid "challenging market conditions in parts of the business".
"We secured a landmark contract with BHP in South Australia, advanced regulatory certainty for the network business, and accelerated our cost-out program, all while maintaining stable earnings in the coal and network businesses," he said.
The group has guided underlying earnings for FY26 at between $1.68 billion and $1.75 billion. It expects to pay full-year dividends of 19-20 cents per share.
The source: ASX
