Aurizon Holdings Limited (ASX:AZJ) Releases Half Year Results
Aurizon Holdings Limited (ASX:AZJ) has released its half-year results, presenting a comprehensive overview of its financial performance and strategic initiatives for investors.
Financial Performance
Aurizon reported an EBITDA of $814 million, reflecting a 4% decline compared to the previous year. The statutory Net Profit After Tax (NPAT) stood at $233 million, a 2% decrease. Underlying NPAT experienced a significant decline of 14%, highlighting challenges in the current market environment. Revenue decreased by 3%, while operating costs increased by 11%, primarily driven by higher maintenance and train crew expenses.
Dividends and Share Buyback
The company declared an interim dividend of 9.2 cents per share, which is a 5% reduction from the previous period, maintaining an 80% payout ratio of the underlying NPAT. Additionally, Aurizon has progressed with its share buyback programme, initially set at $150 million in August 2024 and later extended by $100 million in November 2024, bringing the total buyback to $250 million. As of 14 February 2025, $229 million of the buyback has been completed, resulting in the cancellation of 67,470,250 shares.
Future Outlook
Looking ahead, Aurizon has provided guidance for the financial year 2025 with an expected underlying EBITDA range of $1,660 million to $1,740 million. The company anticipates sustaining its capital expenditure within the ranges of $640 million to $720 million for sustaining capex and $125 million to $175 million for growth capex. Aurizon remains focused on optimizing its operations and enhancing shareholder value through disciplined capital management and strategic growth initiatives.
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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