• Group EBITDA decreased by 4% to $814m, with lower earnings in Bulk and Coal partially offset by an uplift in Network
• EBIT decreased by 10%, contributing to a 0.6ppt decrease in ROIC
• Interim dividend of 9.2cps declared, representing an 80% payout ratio of underlying NPAT

Aurizon Holdings Limited has released its Appendix 4D for the half-year ended 31 December 2024. Group EBITDA decreased by 4% to $814m, with lower earnings in Bulk and Coal partially offset by an uplift in Network. Higher Coal volumes and contract rate indexation was more than offset by the impact of customer mix (lower yield) and higher operating costs. New contract growth in Bulk more than offset by lower grain railings, the cessation of a rail maintenance contract, a derailment in Western Australia, and an increase in doubtful debt provisions. The uplift in Network earnings was driven by higher (allowable) regulated revenue, offset by a reduction in external construction works and higher maintenance costs. EBIT decreased by 10%, contributing to a 0.6ppt decrease in ROIC. The interim dividend declared of 9.2cps (60% franked) represents a payout ratio of 80% of underlying NPAT. The company has maintained its guidance ranges for underlying EBITDA, sustaining capex, and growth capex, although each is expected to be at the lower end of their respective ranges. Key assumptions include Network EBITDA expected to be higher than FY2024, Coal EBITDA expected to be broadly consistent with FY2024, and Bulk EBITDA now expected to be lower than FY2024.

Group underlying EBITDA range $1,660m - $1,740m, Sustaining capex range $640m - $720m (including ~$80m of transformation capital), Growth capex range $125m - $175m

Group underlying EBITDA and sustaining/growth capex ranges all maintained, although each is expected to be at the lower end of their respective ranges. No significant disruptions to supply chains and customers (such as major derailments, extreme/prolonged wet weather or any additional doubtful debt provisions) are expected.