Aurizon lifts NPAT 24% and dividend 46% in FY2026 results
In its FY2026 full year results presentation delivered to analysts on 17 August 2026, Aurizon Holdings (ASX: AZJ) reported underlying net profit after tax (NPAT) of $433m, up 24%, alongside full year dividends of 23.0 cents per share (cps), up 46%.
The result landed above the mid-point of guidance, with the Network, Coal and Bulk divisions all ahead of the prior year. Australia’s largest rail operator used the presentation to frame two strategic threads: a landmark UT5+ regulatory draft decision and growth momentum across Bulk and Containerised Freight.
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FY2026 results scorecard
Management outlined a group result underpinned by higher volumes and disciplined cost control. Underlying EBITDA reached $1,724m (up 9%), while statutory EBITDA rose 6%. On the profit line, underlying NPAT of $433m (up 24%) compared with statutory NPAT of $362m (up 19%).
Underlying earnings per share (EPS) climbed to 25.2c (up 29%), and underlying free cash flow reached $573m (up 11%). The final dividend of 10.5cps (90% franked) represents a 90% payout ratio of underlying NPAT.
The company also completed a $250m on-market buy-back at an average price of $3.72. Return on invested capital (ROIC) improved to 9.5%, up from 8.1% in the prior year.
| Metric | FY2026 | FY2025 | Variance | Note |
|---|---|---|---|---|
| Revenue | $4,194m | $3,952m | +6% | Volume-led growth |
| Underlying EBITDA | $1,724m | $1,576m | +9% | All units contributing |
| Underlying NPAT | $433m | $348m | +24% | Above guidance mid-point |
| Underlying EPS | 25.2c | 19.5c | +29% | Aided by buy-back |
| Free Cash Flow | $573m | $518m | +11% | Strong cash generation |
| Total DPS | 23.0c | 15.7c | +46% | 90% payout ratio |
How each business unit performed
Management detailed the contributions of the three core earnings engines, together with the growth arm.
Network
Network delivered an 8% increase in underlying EBITDA, with volumes up 2% to 212.5m tonnes. The Queensland Competition Authority (QCA) published its UT5+ draft decision in June 2026, setting a pathway to final approval. The company noted a strong improvement in Network availability and efficiency across the period.
Coal
Coal recorded a 2% lift in underlying EBITDA, with volumes flat and unit costs held flat against FY2025. Over 60 million tonnes of annual contracted volume has been re-signed since July 2025, including major Central Queensland customers BMA and Whitehaven.
The cessation of a Hunter Valley contract in June 2026 saw around half of that locomotive capacity redeployed to Bulk and Containerised Freight.
Bulk
Bulk was the standout, with underlying EBITDA up 38% and rail volumes up 6%. The period included first haulage of iron ore for Yilgarn Iron (WA) and AG River Energy (NT). The company also commenced first haulage under the BHP Copper South Australia contract, described in the presentation as the “largest known road to rail conversion in Australia.”
Containerised Freight
Containerised Freight TEUs rose 25%, with non-foundation customer TEUs up 175%. A three-year agreement was signed with SCT Logistics to increase customer frequencies on the East Coast. Management flagged a pathway to break-even in FY2027.
Understanding the UT5+ regulatory reset
The regulated Network business earns a defined “allowable revenue” set by the QCA. This delivers predictable, inflation-protected cashflows that underpin the group’s dividend capacity, making network regulation central to the AZJ investment case.
UT5+ is a ten-year Network access undertaking proposed to apply from 1 July 2027 until 30 June 2037. The draft decision, published in June 2026, indicated the proposed undertaking is appropriate “for the material part,” with submissions invited by 20 August 2026.
The QCA preliminary assessment, published ahead of the draft decision, had already endorsed the WACC methodology, accelerated depreciation profile, and throughput payment as the core commercial pillars of the undertaking, leaving only the operating expenditure allowance as an outstanding matter.
Key features management outlined include the introduction of a Throughput Payment to incentivise Network performance, updated WACC parameters, a bring-forward of future cashflows through depreciation changes, and maintained inflation and revenue protection mechanisms. On average across the ten-year period, this represents a revenue increase of +$45m per annum compared with UT5.
The presentation set out the UT5+ Allowable Revenue trajectory:
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FY2028: $1,356m
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FY2029: $1,421m
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FY2030: $1,465m
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FY2031: $1,497m
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FY2032: $1,526m
The draft decision reduces regulatory uncertainty and, if finalised, locks in a decade of visible, growing regulated revenue that forms the backbone of the earnings base.
Why coal demand still underpins the story
Management presented a structural case that Aurizon’s coal haulage volumes are underpinned by long-life Asian demand rather than declining global demand.
For coking coal, India is expected to be the largest driver of seaborne trade over the coming decades, importing over 90% of its supply. Australia is already India’s largest supplier, with 39mt shipped in FY2026, representing 26% of total trade. India’s import growth has run at +7% per annum since 1990.
On thermal coal, 99% of Australian thermal export volume was destined for Asia in FY2026. The average age of Asian coal-fired generation is just 15 years, against a typical economic life of around 40 years.
Growth push: vehicle logistics and diversification
The presentation detailed Containerised Freight’s expansion into vehicle logistics through two contracts. A long-term partnership with CEVA Logistics commenced in June 2026, with vehicles set to transition to auto wagons upon delivery in mid-FY2028.
A contract with NYK Line covers an initial movement of approximately 7,000 vehicles per annum via the Port of Darwin. Custom auto wagons, engineered for Australian conditions, have been ordered with associated capex spread across FY2026 to FY2028 and first delivery expected mid-2028.
These initiatives support diversification beyond coal and the building of a nationally significant freight supply chain.
Balance sheet and capital returns
Aurizon’s financial position reflected deleveraging on an EBITDA basis alongside higher shareholder returns.
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Net Debt of $5.2bn; Net Debt/EBITDA improved to 3.0x from 3.3x
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Gearing of 57.0%; credit ratings of BBB+/Baa1 (S&P/Moody’s) maintained
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Total capex of $718m (+3%), including growth capex of $138m
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Over $1.8 billion returned to shareholders in dividends and buy-backs over the past four years
What management flagged for FY2027
In its outlook, management provided the following guidance for FY2027:
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Group underlying EBITDA of $1,725m – $1,775m
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Full year dividends expected to be 23.0 – 24.0 cps
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Non-growth capex of $590m – $660m, including approximately $25m of transformation capital
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Growth capex of $70m – $120m
By segment, Network EBITDA is expected to be higher, while Coal EBITDA is expected to be lower, reflecting reduced contracted volume and yield, with FY2027 contracted volume of 211mt, down 20mt. Bulk EBITDA is expected to be higher, and Containerised Freight is expected to break-even on an EBITDA basis.
The guidance signals another year of stable-to-growing earnings and sustained dividends, with Containerised Freight approaching profitability. The resilient Network and Coal base, contributing combined EBITDA of $1,570m in FY2026, continues to fund the group’s growth aspirations across Bulk and Containerised Freight.
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