Aurizon Holdings (ASX:AZJ), Australia's largest rail freight operator, has announced a $100m extension to its on-market share buy-back program, bringing the total buy-back to $250m. The extension is backed by strong cash flows, supported by net proceeds from recent legal settlements. CEO Andrew Harding commented, "The combined $250m on-market buy-back reflects the strength of the cash flows generated by Aurizon… while at the same time, continuing to deliver earnings growth."
Aurizon’s business update shows varied performance across key divisions. Coal volumes (Above Rail) increased by 3.7 million tonnes (mt) to 65.5mt, driven by higher volumes in the Goonyella and New South Wales corridors. Network volumes (ie, volumes transported on Aurizon's rail infrastructure by both Aurizon's own "above rail" operations and other rail operators) rose by 2.6mt to 73.6mt, driven by increases in the Goonyella and Newlands routes. Containerised Freight volumes rose by 23.4 thousand TEUs, reflecting improved interstate schedule ramp-ups. (TEUs, or Twenty-foot Equivalent Units, are a standardised measurement used in shipping and logistics to quantify container cargo.)
Meanwhile, Bulk volumes (non-containerised cargo including raw commodities) fell by 4.5mt to 18.2mt, attributed to reduced bauxite/alumina and grain railings in Western Australia.
Aurizon reaffirmed its FY2025 EBITDA guidance of $1,660m to $1,740m, despite an anticipated decline in first-half EBITDA compared to last year.
Shares are trading 1.87% lower at $3.40.
