Qube flags up to $20m earnings hit from Iran War fallout
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The news: Logistics company Qube is expecting an EBITA hit of between $10 million and $20 million in FY26 due to higher fuel costs as well as lower agri volumes and forestry exports.
The numbers: Qube is also expecting an underlying EBITA hit of between $3 million and $5 million due to adverse weather events in Q3 FY26.
The context: The EBITA hit from the Middle East conflict includes higher fuel costs due to timing lags in recovering costs from customers. Qube expects there should be an offsetting benefit in FY27 when fuel prices reduce.
Lower agri volumes are being caused both by higher shipping costs and the inability of ships to reach markets in the Middle East. Forestry exports are also lower due to higher costs.
The adverse weather events include cyclones affecting Qube’s Western Australian ports and bulk operations while New Zealand forestry activity was impacted by severe storms that caused major flooding.
Qube still expects to deliver underlying earnings growth in FY26 although the full extent will depend on the amount of additional fuel costs that can’t be recovered in FY26 and any further deterioration in activity in key customers and markets.
However, the company said: “these factors are largely non-recurring or short term and, in most cases, should reverse during FY27 (assuming the end of the conflict”.
The source: ASX
