Company Interview / Aurizon’s freight train keeps picking up steam

Key points:

Aurizon posts broad‑based earnings and dividend growth across network, coal and bulkTwelve‑year BHP Mitsubishi Alliance coal contract seen as key Queensland volume anchorContainerised freight volumes rise 25%, with break‑even targeted for FY27 and significant market headroom

Andrew Harding, CEO and MD of Aurizon Holdings (ASX:AZJ) outlines a strong FY26, with underlying EBITDA up 9% and a 46% rise in dividend per share, in his view driven by solid performances across network, coal and bulk. Harding highlights a major bulk contract with BHP’s copper operations in South Australia as a key driver, describing it as Australia’s largest road‑to‑rail conversion. He also points to renewed coal haulage strength, including steady volumes despite a softer sentiment around coal.

Harding frames the 12‑year renewal of the Queensland coal haulage contract with BHP Mitsubishi Alliance as critical, representing about a quarter of Aurizon’s Queensland coal volumes. He states that, across all coal contract renewals over the year, pricing changes are not material. The containerised freight business, anchored by Team Global Express, shows a 25% uplift in container volumes and is expected, in his view, to break even in FY27, with long‑term upside given an 8‑million‑container national market dominated by trucking.

On capital management, Harding notes the completed $250 million buyback and indicates future buybacks remain a live board decision. He stresses ongoing efficiency gains from technology, including AI and systems like TrainGuard, and sees steady conditions across agriculture, iron ore, copper and coal.