Aurizon Holdings (ASX:AZJ)Australia’s largest rail freight operator, has announced a $100 million extension of its market share buyback program, bringing total buybacks to $250 million. The extension is supported by strong cash flows, supported by net proceeds from recent legal settlements. CEO Andrew Harding commented: “The overall market buyback of $250 million reflects the strength of Aurizon’s cash flows… while continuing to deliver earnings growth.”
Aurizon’s business update shows diversified performance across key divisions. Coal volumes (Above Rail) increased by 3.7 million tonnes (mt) to 65.5 million tonnes, driven by higher volumes in the Goonyella and New South Wales corridors. Network volumes (i.e. volumes transported on Aurizon’s rail infrastructure by both Aurizon’s ‘above rail’ operations and other rail operators) increased by 2.6 million tonnes to 73.6 million tonnes, led by increases in the Goonyella and Newlands routes. Containerized cargo volumes increased by 23.4 thousand TEU, reflecting improved interstate schedules. (TEUs, or twenty-foot equivalent units, are a standardized measurement used in shipping and logistics to quantify container loading.)
Meanwhile, bulk volumes (non-containerised cargoes, including raw materials) fell by 4.5 million tonnes to 18.2 million tonnes, attributed to reductions in bauxite/alumina and grain railings in Western Australia.
Aurizon reaffirmed its EBITDA guidance for fiscal 2025 of $1,660 million to $1,740 million, despite an expected decline in first-half EBITDA compared to last year.
Shares are trading 1.87% lower at $3.40.