Qube Holdings Limited (ASX:QUB) Announces FY25 Half Year Results
Financial Performance
Qube Holdings Limited reported underlying revenue of $2,090 million for H1 FY25, marking a 28.4% increase compared to H1 FY24. Underlying EBITA rose by 14.0% to $178.8 million, while underlying NPAT saw a marginal growth of 0.4% to $135.3 million. The company achieved improved EBITA margins through a combination of organic growth and acquisitions, notably benefiting from strong agriactivities and grain trading operations. Despite challenges such as declining automotive volumes and losses from the MLP Interstate Terminal (MITCo), Qube maintained financial strength by securing an investment grade credit rating, issuing $600 million in AMTN, and completing asset sales worth approximately $297.1 million.
Safety Performance
Qube continued its focus on safety, achieving a 9.8% reduction in the Total Recordable Injury Frequency Rate (TRIFR), which declined from 7.8 to 7.1. While some safety metrics like LTIFR and CIFR saw minor increases, they remained near historically low levels and favorable compared to industry peers. The company also launched the BE Safe safety leadership program to promote safe behaviours and reinforce its commitment to safety.
Future Outlook
Looking ahead to FY25, Qube expects continued strong earnings growth driven by its Logistics & Infrastructure division and robust agriactivities. The company plans to invest around $800-850 million in capital expenditure, focusing on maintenance and growth assets. Additionally, Qube anticipates completing asset sales that will further strengthen its financial position. The outlook assumes stable economic conditions and no significant adverse changes in market or operational environments.
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 no position in any of the stocks mentioned. 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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