Aurizon Holdings Limited: FY2024 Financial Year Results
AZJ (AZJ) Share Update August 2024 Sunday 11th
Aurizon Holdings Announces Strong FY2024 Financial Results
Aurizon Holdings Limited (ASX: AZJ) has released its financial results for the year ending 30 June 2024, showcasing significant growth across various segments.
Instant Summary:
- Total revenue increased by 9% to $3,844 million.
- EBITDA rose by 14% to $1,624 million.
- Net Profit After Tax (NPAT) increased by 11% to $406 million.
- Final dividend declared at 7.3 cents per share, representing a payout ratio of 80%.
- On-market buy-back of up to $150 million announced.
FY2024 Financial Performance
Aurizon Holdings Limited has reported a robust financial performance for the fiscal year ending 30 June 2024. The company achieved a total revenue of $3,844 million, a 9% increase from the previous year. This growth was driven by higher volumes and improved yield across its Coal, Bulk, and Network segments.
The company's EBITDA rose by 14% to $1,624 million, reflecting strong operational performance. The Network segment contributed significantly with a $117 million increase in EBITDA, driven by higher regulated revenue and a volume over-recovery. The Coal segment saw a $73 million increase in EBITDA due to higher volumes and yield, while the Bulk segment's EBITDA grew by $15 million, supported by minerals and iron ore volumes.
Segment Performance
Coal: The Coal segment reported a 16% increase in EBITDA to $528 million, driven by higher volumes and yield. Total revenue for the segment increased by 14% to $1,743 million, with volumes rising by 2% to 189.0 million tonnes.
Bulk: The Bulk segment achieved a 7% increase in EBITDA to $229 million, despite challenges such as lower grain volumes and weather-related rail network impacts. Total revenue for the segment grew by 3% to $1,096 million.
Network: The Network segment saw a 14% increase in EBITDA to $930 million, driven by higher regulated revenue and lower energy and fuel costs. Total revenue for the segment increased by 7% to $1,435 million.
Dividend and Buy-Back
Aurizon Holdings declared a final dividend of 7.3 cents per share, 60% franked, representing a payout ratio of 80% of underlying NPAT for the second half of FY2024. Additionally, the company announced an on-market buy-back of up to $150 million, reflecting its strong cash flow and commitment to returning value to shareholders.
Outlook for FY2025
The company expects group underlying EBITDA for FY2025 to be in the range of $1,660 million to $1,740 million. Sustaining capital expenditure is projected to be between $640 million and $720 million, while growth capital expenditure is expected to be between $125 million and $175 million.
The strong financial performance of Aurizon Holdings is likely to positively impact its stock price. The significant increase in EBITDA and NPAT, along with the declared dividend and buy-back announcement, are expected to boost investor confidence. The company's outlook for continued growth in FY2025 further supports a positive market reaction.
Investor Reaction:
Analysts are expected to react positively to Aurizon Holdings' strong financial results. The company's ability to increase revenue and profitability across its segments, despite challenges, demonstrates effective management and operational efficiency. The dividend and buy-back announcements are also likely to be well-received by investors.
Conclusion:
Investors should consider the positive financial performance and growth outlook of Aurizon Holdings when making investment decisions. The company's strong EBITDA growth, dividend declaration, and buy-back plan highlight its commitment to delivering value to shareholders. Monitoring the company's performance in FY2025 will be crucial for assessing long-term investment potential.